In many states, local communities have instituted “accident taxes” or “emergency response fees” that are billed to those involved in an auto accident or other incidents that require a response by emergency first responders. These fees charged are in addition to the taxes already paid by local residents for these same services.
There’s only one problem – insurance does not usually cover these fees. While some fees could be covered under some circumstances, such as the charge for a fire department to respond to a house fire, most of these fees are not covered by standard auto or homeowners’ policies.
Below are some excellent sources of information for those who want to learn more about the topic.
Information Resources:
- Municipal Accident Response Fees (III)
This link to III’s website provides an overview of accident response fees and their impact on auto insurance. - White Paper on Accident Response Fees (PCI)
This still-timely 2010 study from PCI describes the impact of accident response fees on taxpayers and consumers. - Accident Tax Fact Sheet (PCI)
This one-page summary from PCI describes how accident taxes affect non-residents in an area that has these fees. - Video: Accident Tax 2011 (PCI)
This video from PCI provides a summary of the issues concerning accident taxes. - AccidentResponseFees.com
This website is a source for further information about accident taxes.