The WA government has warned motorists about accident management groups fraudulently posing as insurers and holding cars “hostage” until substantial fees are paid.

The state’s Consumer Protection office registered 11 cases this year in which online searches misled motorists involved in accidents into engaging imposter groups while looking for their insurers.  

It says the victims spoke to accident management businesses that falsely claimed to be their insurance providers or affiliated with them, and were told their cars needed towing away for safety reasons.  

In one example, a car was towed despite having only a few scratches, and the owner was asked by the rogue operator to tell her insurer her vehicle was unroadworthy. The woman rang her insurer to find there was no evidence of the claim in its records, and she was sent a towing invoice for $6694.  

Consumer protection commissioner Trish Blake says the companies prey on consumers at a time of vulnerability.  

“After a car accident, victims are often in emotional or physical distress, which can cloud their judgment and make them more susceptible to deceptive tactics,” she said. “To tell crash victims their vehicles are unsafe and need towing, when that’s clearly not the case for minor panel damage, is misleading and could contravene the Australian Consumer Law.”  

She says the issue is not with “genuine and reputable accident management companies”, but with “particular operators that are posing as insurance companies and making false representations to consumers about needing services. 

“The best thing consumers can do to make sure their claim isn’t intercepted is to only contact their insurance companies using legitimate phone numbers found on their official website or on previous official correspondence, such as a statement or policy renewal form.  

“Better yet, keep the number of your insurer on your phone and in your vehicle so you have it at your fingertips following an accident.”  

The WA government announced towing reforms in August to target “unscrupulous practices”, which included establishing maximum charges for towing companies. The legislation is before the state parliament.