Talking Points

Talking Points

To serve and protect; not serve and collect
The role of the police and fire department should be to serve and protect not serve and collect. This accident tax attempts to turn police and fire departments into  profit centers when their main responsibility should be your safety. Arbitrary or unreasonable charges, minimum numbers of responders and over-responding to minor accidents are potential abuses when municipalities seek to raise funds via charge backs. As a taxpaying citizen, it is not unreasonable to expect local police and fire departments to respond to an automobile accident without having to pay extra for this service.

These fees are a "back door tax" on consumers
Local municipalities calculate their tax structure based on the services provided, so adding charge backs as a source of revenue amounts to a form of double taxation. This process is ultimately a "back door tax" on consumers.

Accident response fees increase the cost of insurance
In many cases, consumers are being told that charge backs "will not affect your insurance rates." However, if emergency response costs are routinely billed or charged back to insurers, the payment of emergency response costs by insurers will inevitably lead to higher insurance costs for consumers.

The service fees are often charged only to individuals who have purchased insurance coverage, but not to those without insurance coverage, which violates constitutional equal protection guarantees. Some local governments will only charge and bill persons who that do not reside in their community.

Citizens have a right to know
These fees should not be imposed on drivers without citizens being fully informed about the costs and ramifications. Too often these ordinances are passed without public input or consideration. However, when residents have an opportunity to express their opposition, many local governments have been persuaded to back away from imposing the fee. Additionally, unless you know all the laws and rules in every city where you travel, you could be surprised when the accident tax hits you following an accident. If these fees are charged, local government should make motorists aware that they will be taxed.

A bad idea for cash-strapped municipalities
Collection services are taking advantage of municipalities struggling to balance budgets or maintain vital public services. These businesses promise local governments large windfalls if they enact these fees. Keep in mind, some of these fee collectors receive 10 percent of what they collect on behalf of the municipality. An additional fee for emergency services creates a hidden tax that increases the cost of insurance without providing additional benefits for consumers.

These fees can affect you regardless of where you live
Just because your town or village has not imposed these fees, don't think this issue does not affect you. Even in cities where the residents are not charged, you can be affected by these fees. It is not unusual for motorists to travel from one city to another for work, running errands, visiting the doctor, shopping or even going on vacation. When you travel and are unfortunate enough to have an accident, you could find yourself receiving one of these bills if you're in the wrong city.

Consumers and insurance companies are in this together
Insurers are honored to be by your side providing you assistance following an accident. As your insurance partner, we are committed to paying all appropriate bills and charges associated with an accident. However, public safety is a basic role of government and it's paid for through state and local taxes. These accident response fees add unnecessary costs to insurance coverage that ultimately affect the premiums you pay. We're dedicated to keeping insurance costs fair and reasonable and as a result, we think you should know when government action may raise your rates through a hidden, double tax.