The Insurance Council of Australia (ICA) says light vehicle accident towing fees in Victoria must be regulated to protect motorists from excessive charges.

In a submission to the Essential Services Commission, which is reviewing the industry, ICA says regulation in Melbourne has been a success, but other areas are prone to overcharging.

“Our members are aware of exploitative pricing practices in Geelong and unregulated areas, with inflated charges by some operators… two to three times higher than fees in the regulated Melbourne area.”

ICA says it would welcome pricing caps, as long as they are regularly reviewed to ensure a sustainable tow truck industry.

Touting for repair business at the scene of an accident remains an issue, and ICA says vehicles should not be towed directly to repairers.

Instead, three options should be offered to the motorist: returning home, storing the vehicle at the tow operator’s holding yard or obtaining instructions from the owner’s insurer.

ICA members are also concerned whether VicRoads can cope with the high number of complaints.

“Regulation of accident towing will only be effective if there is an ability to properly enforce those regulations,” the submission says.

Heavy vehicle towing fees should continue to be unregulated, because there are no indications excessive sums are being charged, it says.