| Accident Response Fees On the Rise In California |
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Published
01/20/2011
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View The 'Crash Tax Tracker'(Mac/PC) Related Articles Poll Finds Widespread Opposition To Accident Response FeesCalifornia drivers spend a lot of time on the road. But whether for work or fun, if you are involved in an accident, there is an increasing chance you could be charged for emergency services that arrive on the scene.
In California, accident response fees are a growing trend, often among cash-strapped communities looking to cover budget shortfalls due in large part to the loss of property and sales tax revenue.
Typically billed to insurers, the charges cover services ranging from the extraction of drivers and passengers from their vehicles to the cleanup of spilled oil, transmission fluid, gasoline and antifreeze or even the act of directing traffic. Bills for accident responses often range from a few hundred dollars to several thousand dollars.
Many insurers will not pay these fees because they are not necessarily covered under the terms of an auto insurance policy. If insurance policies routinely covered the cost of these new accident fees, it could impact the cost of auto insurance for California drivers. Billing agencies sometimes will seek compensation directly from the vehicle owner if the charge is not covered by insurance.
The administration of these fees also changes from jurisdiction to jurisdiction, adding to motorists’ confusion. In some cases, only at-fault out-of-town drivers are charged, but some agencies will charge all at-fault drivers and others will assess all drivers involved regardless of fault. Uninsured motorists are currently exempt from receiving accident invoices.
Often these locales contract with third-party vendors to collect charges. In so doing, vendors charge an administrative fee in the range of 17-to-20 percent of the total accident charge, or $17 to $20 on every $100 charged.
Revenues promised to communities often fall short of projections. The community of Woodland estimated annual accident fee revenues totaling nearly $170,000. After one year, however, only $50,000 had been collected, less than 30 percent of the original forecast.
NEWS ARTICLES
Editorial: Fire Department Fees: An Abdication Of Government (Los Angeles Times)
Council To Consider Billing Non-Resident Drivers For Emergency Services (Sacramento Press)
Editorial: Nix Bad Idea To Bill For Crashes (Sacramento Bee)
ADDITIONAL RESOURCES
CalCrashTax.com
AccidentResponsefees.com
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