Towing industry warns EV storage rules and special insurance will squeeze small operators

Towing firms told the committee that damaged electric vehicles present new storage constraints and fire risks that consume yard capacity and require special insurance endorsements.

Richard Thompson and Troy Barnett described growing need to separate EVs from other stock and to carry pollution/environmental liability coverage. As one operator summarized a quote from insurers, "it was 15 to $4,500 per truck is what she was quoting me." Barnett said one company was quoted about $950 extra per year for two trucks for EV-specific coverage; other estimates presented to the committee ranged higher. Operators warned that added per-truck premiums could make participation in the DPS tow-service agreement unaffordable for smaller firms.

DPS staff said the department would consider how contract language affects small operators and agreed to supply the committee with the specific TSCA (tow service certification/agreement) language and cost estimates so members can evaluate whether exclusions, subsidies or alternative requirements are necessary.