Tennessee has a new law that stops cities from imposing fees for the cost of responding to motor vehicle accidents.
The measure (HB 2547) was passed by the Tennessee General Assembly and became effective with Gov. Phil Bredesen’s signature on March 28. The law prohibits a local government entity or any person from assessing an accident response service fee on an insurance company, the driver or owner of a motor vehicle, or any other person for the response or investigation by a law enforcement agency of a motor vehicle accident.
According to the Property Casualty Insurers Association of America, these fees are often charged to insurers and then passed along to consumers.
“This new law will stop local governments from imposing a hidden double tax on consumers that ultimately increases the cost of auto insurance,” said Robert Herlong, vice president and regional manager for PCI.
Similar legislation has been signed into law in Pennsylvania, Missouri, and Indiana. Legislative proposals to discourage municipalities looking to impose similar fees are also currently being heard in South Carolina, Florida and Georgia.
Topics Legislation Tennessee
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