Why accident taxes will not affect car insura Follow

Why accident taxes will not affect car insurance quotes

A new tax known as an accident tax or a crash tax is being enforced in many communities around the country, yet many motorists have never even heard of the tax.

If a driver has an accident in a different state in which they reside and emergency workers are deployed to the scene of the accident, they may be liable to pay accident tax. At the moment, 256 states enforce the use of this tax for out of town drivers and it may affect the cost of your auto insurance rates.

It has come to light in recent months that many officials don’t agree with the tax. Some claim that in order to avoid paying these taxes, drivers are driving at particularly low speeds making the roads more dangerous.

Some cities around the country have banned the tax while other cities agree with it and have added the fee to their bylaws.

Many areas assumed that the tax would be picked up by insurance companies but many insurance companies have failed to do this, leaving drivers to pick the cost up themselves.

Insurance companies are not picking up the costs as according to the National Association of Mutual Insurance Companies, they believe that local taxes should pick up the cost.

Depending on the type of services needed, the costs vary from between $28 up to $2,200. For example, Florida residents will be charged around $28 per hour for a police officer while an accident extrication will costs $1,000.

The bad news is, many insurance companies feel that they may be forced to put up their car insurance quotes in order to cover these taxes in the future.

Mike Lane, a lawyer and lobbyist for State Farm who is against the accident response fees, told MSN:"Cities are feeling more and more pressure as budgets are tightened and cut. Fire and police departments are suffering a lot and they never have enough money to run their departments."

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