Towing Issues: Towing to the Yard, tow company, tow companies

Question
I have a customer who had a collision and called the tow provider to move the undrivable vehicle to the repair faciliy of his choice. The tow provider said that it is their policy to tow the vehicle to their yard and then the Insurance company must call and give permission to release the vehicle so it may be moved to the customer's repair facility of choice. This has resulted in over $300 in charges for the amount of time the vehicle was there and for the tow itself.
Is this legal?
It seems to me that the tow company is scamming people.
Just because I am sure you are wondering, no, the police are not the ones who requested this tow. The driver was making a delivery and simply forgot to put the vehicle in park and it hit the steps of a residence. The police were called to the scene and the owner of the vehicle wanted the vehicle taken to the repair shop of their choice, but the tow company said they could not do that.

Thanks for your help!

Answer
well this is one of the "gray areas" in towing...

Now its a private call from what you describe and as such the vehicle owner should be able to have it towed to the destination of choice at that time...  

But when dealing with insurance companies, "SOME TOW COMPANIES" (I use that term loosely) have developed systems to get as much as possible from the insurance companies. (by chance is this either Chicago or Philly?)

I would believe from what you say that it is a scam to get more money and they are holding the vehicle hostage in this case...

I would first of all not ever use that tow company again, and I would file reports with the local police and the state about the practices (you did not mention the state you are in and as such I can not tell if there is a specific law broke or who to report this to)

But all in all, if insurance is covering this (they have full coverage correct ?) then the insurance company will have more weight and power (think Lawyers) to try and resolve this issue...  But if you do not have full coverage you can still contact the insurance company and have them help "protect you the customer" in most cases.