Committee concurs with House Bill 223 to require insurance coverage for commercial tow costs up to policy limits

2732639 ยท March 21, 2025

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Summary

The Senate Transportation Committee concurred with House Bill 223, a measure requiring motor vehicle insurance policies to cover reasonable towing, recovery and cleanup costs for commercial tow truck operators, limited to the policy limits.

The Senate Transportation Committee concurred with House Bill 223, which requires motor vehicle insurance policies to cover reasonable costs for towing, recovery and cleanup performed by commercial tow truck operators, subject to the limits of the policy.

Committee discussion noted the bill originated from a local tow operator. A senator recounted proponents saying Montana tow truck companies sometimes pick up as much as 40% of wreckage cleanup without compensation. "Montana tow truck companies sometimes pick up as high as 40% of the wreckage that they don't get paid for," a committee senator summarized during debate.

Senators moved and passed concurrence by voice vote with recorded proxies and at least one recorded no vote: Senator Hunter registered opposition on the record. Committee staff recorded proxy votes including Senator Olsen voting aye by proxy; another on-record proxy stated "Jasmine aye by proxy." The committee announced House Bill 223 as concurred in.

No amendments to House Bill 223 were recorded during the committee's concurrence action on the record excerpt. The sponsor and proponents said the House had amended the bill to limit recoverable costs to "up to the limits of the policy," which proponents said addressed earlier concerns.