Alberta has seen a lot of migration into the province recently, but there are some things we would rather not welcome. The Canadian Underwriter is warning that the same fraudulent towing tactics that have been plaguing Ontario are now making their way into Alberta, according to investigators with the Équité Association.
The Équité Association works to reduce and prevent insurance fraud and crime and its impacts on Canadians. They state that, “There have been reports of tow trucks operating in Alberta that still display Toronto’s 416 area code, showing that Ontario operators are bringing their predatory practices west.”
“Ontario served as the testing ground, and now Alberta is becoming the proving ground,” they say.
Exploiting the vulnerable
When our vehicles break down in an unsafe or distant location, it’s an unsettling feeling. It’s an extremely vulnerable situation, and complaints have surfaced about tow truck operators taking advantage of Albertans.
Common schemes that have been reported include charging excessive fees and surcharges, billing for services never performed, refusing to release vehicles unless additional payments are made, or falsely claiming to be affiliated with insurance companies.
In some cases, tow trucks appear at accident scenes uninvited, having monitored police scanners or after patrolling high-traffic areas. They then pressure drivers into using their services instead of waiting for a provider they trust.
Then, what drivers are told at the scene often doesn’t align with the services actually performed, leaving insurance companies to dispute inflated charges after the fact. The fear is that, as seen in some Ontario markets, the problem could quickly escalate — particularly in major urban centres like Calgary and Edmonton.
Rising costs for insurers
Recently, Edmonton Police Service charged 11 individuals from 10 local tow truck companies with fraudulent billing offences targeting insurance companies, following an investigation that ran from March to May 2025. Police estimate these companies defrauded insurers of more than $120,000.
Unfortunately, managing these fraudulent practices comes at a significant cost.
Insurance companies are now having to dedicate entire teams to overseeing tow and storage claims. It is expensive, time consuming, and resource-intensive, which makes auto damage claim expenses more costly as well, a deficit that may be passed down to consumers.
Ontario takes action
In response to rampant fraud, Ontario introduced strict new tow-truck regulations effective Jan. 1, 2024. Under the legislation, tow and storage operators must now be provincially certified, follow a mandated code of conduct, and comply with maximum fee schedules. Consumers can verify a towing company’s certification and rates through a government portal and file complaints if necessary.
Prior to this province-wide system, regulation varied significantly between Ontario municipalities, creating loopholes that unscrupulous operators exploited. The Insurance Bureau of Canada notes that as Ontario closed those gaps, some operators have shifted their focus to Alberta, where consistent provincial oversight is still lacking.
Insurance experts suggest that Alberta consider a harmonized provincial approach, rather than leaving regulation to individual municipalities, as patchwork regulation leaves too much room for manipulation. They are asking for consistent screening before licensing tow-truck operators and clear limits on what services can be billed for and at what price.
In addition, tow-truck operators should be required to provide clear information about consumer rights at the scene, an obligation that should be built into legislation. Either operators must inform customers directly or provide written documentation outlining rights before any services begin.
Protecting consumers
Consumer awareness remains key to preventing fraud. Policyholders are unlikely to notice fraud through direct billing to insurance companies, warns the Edmonton Police Service. Make sure to always request a detailed invoice from your insurer after using a towing service.
You have the right to choose your tow provider and should never feel pressured at the scene to choose another.
Lower auto insurance rates from Lane’s
Are you struggling with high auto insurance rates in Alberta?
Insurance brokers such as us at Lane’s have access to the very best policies available from Canada’s most respected auto insurance providers, providing you with a number of different insurance options — not just one.
We also have access to a number of different types of discounts to help find you lower rates. And we will never fail to ask if you qualify for each of them. We know the right questions to ask to ensure you get the best deal available.
Lane’s Insurance is a leading Alberta-based brokerage working out of Calgary, Banff, Edmonton and greater Alberta. We help you save by getting insurers to bid on your business. The end result is fantastic coverage at lower auto insurance rates.
