Top Car Insurance Companies Pay Crash Tax
When emergency responders come to a car accident scene to clean up the mess, they often tax the person who caused the accident. According to “Ethics of Calif. Auto Insurance Crash Taxes Debated” by Ben Zitney of Online Auto Insurance, sometimes the offender is charged even though top car insurance companies are also paying for the emergency response. California State Senator Tony Strickland hopes to get a bill passed by the California Legislature banning cities from charging fees to respond to accidents. Ten states have already enacted bans like this on police departments, but fire departments are still sending out the bills.
Fire departments are looking for ways to get revenue as their budgets are cut and they have to lay off employees, but many people don’t think this tax is fair to citizens or insurers like Infinity auto insurance. One fire chief says that clean up of car accidents is outside the scope of work paid for by property taxes and stresses that most insurers do pay the taxes. He compares it to health insurance companies paying the cost of ambulance transports from accidents. While it’s hard to get a definite number, one survey showed that just over half of insurers pay the tax from city departments related to car accidents. Whether citizens pay the tax out of pocket or insurers pay the tax, the increased premiums likely to occur will just force citizens to pay one way or another.
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