Accident Response Fee Debate Heats Up Again

The last thing someone operating a car wants to do is deal with an auto accident.

That being said, the debate regarding accident-response fees has once again been brought to the forefront after fire departments in Salem, N.J. and New York City noted they will be requiring drivers who are responsible for serious accidents within their borders to reimburse local governments for the expense of responding to such accidents.

Financial experts in the insurance industry recommend policyholders to contact their agents in the event they wonder whether or not they are protected for such fees.

While the issue of imposing expenses on drivers and their auto insurers to recover the cost of emergency response is nothing new, it has gained more attention recently. The simple reason behind this is that many cities and counties have been fighting to make budgetary ends meet, thereby leading to states investigating the practice. In some instances, states have been okaying bans on it over the last two years.

More or less the premise behind the “crash tax” as it is known in some circles, is whereby the driver who is at fault for the accident must cover all resulting expenses, not the local taxpayers.

Meantime, opponents of the fees claim that it leads to double taxation, residents pay for emergency services via local taxes, and then they are charged a second time for the ensuing emergency services if they are the cause of a major accident.

As it stands in New York City, at-fault drivers, not their insurance providers, will get the bill directly, whereby they then have the option of submitting it to their insurance company on their own for claims payment. If the insurance company opts not to pay the bill, it continues as the at-fault motorist’s responsibility.

Meantime, Salem goes by the idea that the bill goes straight to the coverage provider. Should the coverage provider refuse to pay, the policyholder is deemed not responsible for providing the money.

A 2008 report to the Florida State Senate estimates that 56 percent of car insurers in the U.S. look at the fees as valid and pay them on behalf of the people they insure.

For those drivers who may be at a higher risk for accidents, be sure your insurance policy is up to date and offers you the most protection possible.

Meantime, it appears the debate over who is responsible in some areas of the country for accident responding fees will continue.