The ABC published a report on Suncorp's statement that the insurance company had seen a 70 percent rise in car nappings.
The story on ABC reads:
Insurer Suncorp has seen a 70 per cent jump in so-called car-napping cases, where damaged vehicles are held for ransom until the owner pays exorbitant towing and smash repair bills.
Key points:
- Car-napping involves damaged cars being held at smash repairs indefinitely until owner pays exorbitant fees
- Instances on the rise by 69pc in Victoria, 60pc in NSW, Suncorp says
- Drivers presented with complex contracts at crash scenes giving law firms power to pursue costs
- Car-nap victim 'almost cried' when shown $8,000 bill
The increase has prompted the company to call for tougher regulations to protect consumers, who can often be presented with complicated legal contracts on the side of the road after a crash.
Suncorp told the ABC it had seen a 69 per cent rise in car-napping cases in Victoria and a 60 per cent increase in New South Wales this year.
It claimed the practice was costing the industry tens of millions of dollars and pushing up the cost of insurance policies by $30 to $40 a year in those states.
Consumer Action Law Centre chief executive Gerard Brody described car-napping as when a network of tow truck companies and smash repairers charged exorbitant fees for repair work then held the car for ransom until the driver paid.
Many operators are also working with law firms who pursue the at-fault driver for costs.
"It's been called car-napping colloquially because people are paying very large sums of money to these smash repairers to get their car back," Mr Brody said.