Crash Response Charges

By Author: Norris Rios
Total Articles: 572
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When we were young, every city and town of size prided itself on its response to traffic accidents. There were local law enforcement vehicles out patrolling, hoping by their presence to keep the driving standards high. If accidents were unavoidable, ambulances could be summoned to take people to the nearest ER and fire department would appear to douse flames and cut through the wreckage to free the injured. Even in the country areas where the fire departments were staffed by volunteers, everyone trained to reach professional standards. There was a general community spirit that kept everyone working well together for the benefit of all. But as the recession hit and tax revenues fell, the deficits became increasingly unaffordable.

Many state and local governments have been forced to cut back on staff levels. Morale has been further damaged as pension commitments have been declared unaffordable. Even in democrat-controlled areas, it's considered political suicide to increase taxes to help pay for public services. So, as a gesture to support the funding of crash response teams, many cities introduced fees and charges if teams ...
... were called out to an accident. There was a split on who should pay. In some areas, the drivers of all vehicles involved were sent a bill. In other areas, local drivers were exempted. This avoided double taxation. If a local resident pays property and a sales tax, this is supposed to cover the cost of all major public services. It would therefore be unfair if additional charges were imposed on top of those taxes.

Kansas has now joined two other states in banning crash response charges. Twelve other states have imposed limits on the amount that cities can charge. This reflects protests from the electorate that insurers have been increasing the premium rates to cover these additional charges. The problem for the insurance industry is that these charges add to the cost of the claims they face. Although the design of vehicles is improving and reducing the number of deaths and serious injuries, the sudden imposition of all these charges raises the average amount claimed, even in more minor accidents. It will be interesting to see what further strategies cities and towns will devise to control their deficits - other than declaring themselves bankrupt, of course.

As to the accidents themselves, there's a new study out showing that insurers in California have been increasing the premium rates by about one-third in response to an accident with no personal injuries. If there are personal injuries, the auto insurance quotes have been rising by an average of 70%. This is a disconcertingly high level of response. When you consider that many drivers may make no claims for many years before finally having an accident, the average increase of 70% flatters the companies. When the driver involved was already considered potentially at risk, the rates may more than double on the first more serious accident. Even if we make excuses that, during a recession, insurance companies are likely to hold down the rates to avoid penalizing households under financial pressure, potentially doubling rates on the first accident shows a stunning lack of sympathy for the financial plight of poor families. Even if people shop around and get multiple auto insurance quotes, the rate will be high all round because insurers exchange details of the claims made.