HOUSTON -- Note: The following story is a verbatim transcript of an Investigators story that aired on Tuesday, May 6, 2008, on KPRC Local 2 at 10 p.m.

Local 2 Investigates Houston valets. We found valet companies parking cars with no proof of insurance and one driver with no driver's license.

It's a business the city of Houston is trying to control, but investigative reporter Amy Davis discovered a new city ordinance designed to protect you falls short, leaving some consumers at the curb with no car.

Curbs are crowded at every turn. In some parts of Houston, parking is at such a premium, many drivers say valeting their vehicles is the only way to snag a parking spot.

But how do you know the valet taking your keys and your car is insured and licensed?

"Before you park my car, can you just show me your insurance?" Davis asked valet companies across Houston.

It's a question Ariana Venegas wishes she would have asked last August.

"Now when I go out, I'll park it myself. I keep my keys myself," said Venegas.

Pictures of a four-car pileup show what happened when she surrendered her keys at a restaurant in the Montrose area. In the collage of cars, you can also see Kris Valchar's Land Rover.

"The whole front end of my car, it was incredibly smashed up," Valchar said.

A valet parking cars at La Strada restaurant ran Valchar's Land Rover into three other cars and then ran off. Valchar says the owner of RTM Valet refused to give the driver's name.

"He said that basically what we needed to say was the he was there that day on personal affairs and that he crashed his car into all these cars, which his car was never there. This was a totally fabricated story," said Valchar, recalling the events last year.

The insurance company did not buy the fabricated story. Instead, all four drivers had to pay deductibles and their own insurance covered the cost of repairs.

"There's no way of telling. You just got to trust them, I guess," Venegas said.

But the city of Houston's Parking Management Office says there is another way.

"We would like consumers to know that there is a valet ordinance out there," said Liliana Rambo, the city's chief parking official.

The valet ordinance itself is not new, but an appointed parking commission beefed it up last November.

Among the changes, all valet companies that use city streets to park cars must apply for and get a city permit.

All drivers must have and provide a driver's license and a good driving record. And each company must have a copy of proof of insurance on-site and display it on request.

So we took the ordinance to the streets to find out who's complying.

"We just wanted to see if we can see proof of your auto insurance," Davis told a parking attendant at Palazzo's on Westheimer.

"Auto insurance right here?" the valet asked.

"Yeah," said Davis.

"I'm the manager here at this location. Auto insurance proof is with my boss," he replied.

It was the same story at Fogo de Chao on Westheimer, another Palazzo's between Kirby and Shepherd on Westheimer and even the upscale shopping center Highland Village.

No one could show us proof of insurance on the spot.

"We have it at the office and they close at 6 o'clock," explained the owner of Luxury Valet Services, who has a contract with Highland Village to valet cars there. He agreed to fax the proof the very next morning; and he kept his word.

But is that a double standard? You and I are required by law to keep our car insurance close by when we drive. In an accident, we have to pull it out right away.

"Completely appalled," said Valchar, recalling how the owner of the company who wrecked his car wouldn't even call him back.

"The owner of RTM Valet Service pretty much told me that I should just let my insurance company take care of it because he did not have insurance on the day that the accident happened," said Valchar.

And six months after the collision, the owner still did not have up-to-date insurance information to provide customers. We stopped by in March and asked for a copy of RTM's proof of insurance.

"They have it inside actually. They have my -- the copy of my insurance," said owner Seddik Belmamoun.

But Davis had already obtained a copy from managers at La Strada. The policy they provided expired three months earlier in December.

Belmamoun admitted withholding his own employee's name and information.

"I came here. I gave them my information," said Belmamoun, explaining his actions after the August accident.

"But you didn't wreck the cars. The driver did," Davis replied.

"Ma'am, it's a private parking. It's a private parking. Why would I give you or anyone else his information?" asked Belmamoun.

Bottom line, the city can't compel Belmamoun to show that information because of just what he said. Valets parking cars on private property are exempt from the city's ordinance.

"I feel that he is aware that that is the system and he's using that because he knows that I'll give up," said a frustrated Valchar.

"Can I ask why do you -- why are we going through this?" Belmamoun asked Davis.

"We're going through this because your employee caused thousands of dollars in damage to people's cars and your company didn't take responsibility," said Davis.

"Ma'am, we are responsible for everything," said Belmamoun, saying that it isn't his problem if his insurance company did not handle the matter appropriately.

"If they're operating on private property, the ordinance does not apply to those businesses," said Rambo.

But even valet companies that have the city permit fell short on providing us proof of insurance.

At The Lancaster Hotel downtown, we waited patiently for State Parking Services employees to find the company's proof of insurance.

But after 20 minutes, the manager still couldn't find the policy.

"So, valet companies should definitely know about these rules?" Davis asked Rambo.

"They should know about the rules," Rambo replied emphatically.

Sovereign Services Valet at Jones Hall was the only company that passed our spot check. While that may be good news for symphony fans, it's of little help for Houstonians just looking for a bite to eat and a parking spot.

"I run a business and I hire insurance company that does this, right? So the insurance company should take care of it. If they don't do it, I have a lawyer to take care of it," said Belmamoun.

And good news out of that multi-car accident -- it took eight months. But just two weeks after we spoke with the owner of RTM Valet, his insurance company agreed to refund the other companies for the damages. Kris Valchar said he was reimbursed his $500 deductible.

The city's Parking Management Office says it will review the valet ordinance on the one-year anniversary to discuss ways to make it stronger and more effective.

Since we spoke with them about what we found, they say they will consider making it apply to valets on private property. Those discussions will begin in October.

You can file complaints on valet companies with the city's office of Parking Management at www.houstontx.gov/parking.

You can send an e-mail to parking@cityofhouston.net or give them a call through 311.

More Information:

Valet Parking Ordinance