Louisiana Tow Truck Companies Say Insurance Costs Are Driving Businesses Under

Louisiana tow truck operators say insurance costs are becoming impossible to manage. Jared Varnado of Varnado and Sons Towing told Talk 107.3 his company pays more than $400,000 a year to insure 14 trucks, even with a clean record. He said many towing companies across Louisiana are shutting down because of rising premiums. Varnado explained that tow companies face strict state regulations on non-consensual towing rates while also struggling to collect payments on many abandoned vehicles. He said those losses eventually raise towing costs for everyday customers. The conversation also focused on lawsuit abuse and tort reform at the Louisiana Capitol. Varnado argued that inflated medical billing tied to lawsuits drives up insurance rates for businesses statewide. He said the towing industry supports reforms aimed at lowering projected insurance losses and providing more transparency in medical billing.