Poll: Public Opposes Crash Taxes

February 7, 2011

Three out of four adults (76 percent) believe their taxes cover the time and services provided by emergency response providers following a traffic accident, and additional accident response fees charged by local governments are not necessary.

In recent years, local governments looking to plug budget shortfalls have sought to impose fees on traffic accident victims. But a new Harris Interactive poll for the Property Casualty Insurers Association of America found that these fees are very unpopular.

The fees can range from a few hundred to a few thousand dollars or more. Some local governments levy the fee on all accident victims, while others just charge out-of-town drivers. Still others target at-fault drivers or accidents that involve fires or spill cleanups. These fees are often charged to insurance companies. But often these costs are not covered by insurance, which could leave the accident victim facing a bill or the potential of higher insurance costs, according to PCI.

The survey found only one-third of adults believe charging these fees are appropriate, while twice as many (six in 10) disagree with the practice. Opponents say police or firefighting services are already paid for through property and other local taxes.

The opposition to the fees grows to 66 percent if it were to lead to an increase in the cost of insurance and 70 percent if only non-residents are charged the fee. The survey also found that charging accident response fees could also have a significant impact on local businesses and tourism, as more than four in 10 adults reported they would be reluctant to travel in towns that assess such fees.

According to PCI, 10 states currently restrict local governments from charging accident response fees: Alabama; Arkansas; Florida; Georgia; Indiana; Louisiana; Missouri; Oklahoma; Pennsylvania; and Tennessee. Bills to prohibit local governments from charging such fees have been introduced in Arizona, California and Michigan.

The Harris Interactive survey was conducted for PCI by telephone in the United States between Jan. 12 and Jan. 16, 2011, among 1,428 adults aged 18 or older. This data was weighted as necessary to bring it into line with the actual proportions of the population.

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Insurance Journal Magazine February 7, 2011
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