The American Insurance Association (AIA) announced it testified in favor of legislation in Kansas — House Bill 2119 — that would prohibit municipalities from adopting accident response fees or “crash taxes.” AIA’s testimony was presented by Brad Smoot, AIA’s Kansas counsel, before the Committee on Financial Institutions and Insurance in the Kansas Senate.
Like other insurance trade groups, the AIA believes that charging residents for accident response “amounts to double taxation and sends the wrong message to motorists in need of emergency assistance,” Smoot said. The fees are often charged to insurance companies.
“Crash taxes” can have harmful effects on driver safety as motorists may forego needed emergency services as victims of accidents may be hesitant to call for ambulance services for fear of having to pay fees, the AIA said.
Twelve states have already implemented statewide bans or limits on response fees. HB 2119 passed the Kansas House by a vote of 119 to 2 on February 24. It now is now being considered by the Committee on Financial Institutions and Insurance in the Kansas Senate.
A recent survey conducted on behalf of another insurance trade group, for the Property Casualty Insurers Association of America, found that 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.
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