Towing fees in Mississauga to spike by hundreds of dollars

Towing fees are about to go up by hundreds of dollars in Mississauga, something the Insurance Bureau of Canada says will put pressure not just on drivers but also inflate premiums.

Last month, Mississauga City Council voted nearly unanimously to increase towing fees when vehicles are directed to a collision report centre. This motion was ratified two weeks ago.

For vehicles not exceeding 6,000 pounds going to a single location, the fee was increased to a flat rate of $400 while vehicles that require a tow to a collision report centre and then a second location would spike to about $750.

The motion argues the old fees did not take the dramatic increase in fuel prices, insurance and other related costs into account.

Nine city councillors voted to approve the motion on June 22 while three others, including Mayor Bonnie Crombie, were absent.

Following the decision, the Insurance Bureau of Canada (IBC) wrote a letter to Mississauga council expressing “serious concern” about what they say is an 87.5 per cent increase to towing fees when directed to a collision reporting centre and 33 per cent in other circumstances.

“The Highway Traffic Act requires a vehicle attend a CRC in property damage only collisions valued at over $2,000, which makes it clear the majority of consumers in need of towing services after a collision will be hit with the larger of these two increases,” Kim Donaldson, vice president of Ontario with IBC, wrote in the letter.

“These exorbitant price increases for towing and storage-related services will only exacerbate inflationary pressures both consumers and the industry are facing.”

Donaldson went on to say that vehicle storage rates in Mississauga was raised in 2020 from $60 a day to $85 per day “without justification to residents and other stakeholders.”

“This is the highest rate in the Greater Toronto Area and among the highest in North America,” they said.

Speaking with CTV News Toronto, IBC’s Director of Government Relations Ontario Arthur Lofsky said there was no public consultations or staff report justifying the change that occurred. He also said the new fees may affect insurance premiums and increase claims pressures.

“It doesn’t make any sense,” he said. “I think the city council of Mississauga should explain this to residents.”

The charge for a “medium tow” in Toronto is about $280, according to police.

A spokesperson for the City of Mississauga said the changes apply only to collision towing and will not impact drivers whose vehicles break down on the side of the road.