Questions and Answers

Questions and Answers 

1. How do I know where these fees are charged?
2. Aren't these fees an opportunity for insurers to charge me more for auto insurance?
3. Doesn't insurance automatically cover these types of fees?
4. How much is being charged for these services?
5. Isn't this like a user fee, if I am not in an accident I won't be affected, right?
6. What is being done to stop these fees from going into effect?

1. How do I know where these fees are charged?
Currently there are 26 states where municipalities have implemented or entered into contracts with collection services to charge a fee when the police or fire department is sent out to respond to a traffic accident. It is difficult to track every city that imposes a fee because they are often put in place as a routine local ordinance with little public awareness. In other cases, the billing is done unilaterally by local public safety officials. Often the public only becomes aware of the program when the accident victim's insurance company receives a bill demanding payment.

(If your local government is considering charging an accident response fee or already has one in place, Click Here to let us know about it and to take action.) Back to top

2. Aren't these fees an opportunity for insurers to charge me more for auto insurance?
Insurance companies are trying to hold down insurance costs and in many cases refuse to pay these fees. Taxpayers have already paid for these services and should not have to pay for them again through their insurance. Many insurers oppose these fees because they will increase rates without providing any benefit to consumers. Back to top

3. Doesn't insurance automatically cover these types of fees?
No. Most automobile insurance policies do not provide coverage for these fees. While ambulance services are often covered as part of the medical expenses, police and fire services have always been paid for through tax dollars. These fees are a new attempt to raise revenues, without directly raising taxes. If insurers were forced to begin covering these services, insurance costs would increase to compensate for the added expense and that would tend to drive up rates. Back to top

4. How much is being charged for these services?
It varies from city to city. Insurers have been billed from $100 to over $2,000 for response services. There are no checks and balances related to what is spent to respond to traffic accidents compared to what is billed. This environment creates the potential for abuse at many levels. Setting arbitrary or unreasonable charges for services, establishing a minimum number of responders to be sent out on a call, and over-responding to minor accidents are only some of the most obvious potential abuses that would maximize income. Back to top

5. Isn't this like a user fee, if I am not in an accident I won't be affected, right?
If this were a user fee the consumer would be charged directly for the service. However, since the local government does not want to raise taxes directly, they bill insurers. Since insurers spread the cost of losses across large numbers of policyholders every consumer is affected by this fee. For example, in one city the average response fee is approximately $400. If insurers pay an additional $400 for every accident, costs for each consumer would have to increase as insurers spread the risk across all policyholders. Back to top

6. What is being done to stop these fees from going into effect?
Citizens taking a stand against these hidden taxes, that ultimately raise costs for all consumers, is an effective way to fight these programs. Already consumers in many localities have expressed outrage over being billed for services they thought were coming from their local taxes. These fees can create a firestorm of bad publicity for a city. Newspapers have written editorials calling into question the soundness and fairness of these programs. Radnor Township in Pennsylvania dropped its practice of billing for police services and refunded nearly $47,000 it had collected after their program received many complaints and bad publicity. In Florida, Tampa and the town of Davie both dropped proposals after the public expressed outrage. 

In addition to fighting these fees city by city, nine states Arkansas, Florida, Georgia, Indiana, Louisiana, Missouri, Oklahoma, Pennsylvania and Tennessee have passed laws prohibiting municipalities from charging these fees. Back to top