NAMIC Issue | Accident Response Fees

Accident Response Fees [S]

Our Position

Accident Response Fees (or “crash taxes”) are fees where municipalities in at least 34 states have attempted to force insurance companies and their policyholders to pay for expenses incurred by police and fire department personnel that respond to automobile crashes.

NAMIC opposes accident response fees because they represent a form of “double taxation” that is imposed on drivers who already pay for public safety services as part of their property taxes. These fees are applied only to responsible drivers that carry auto insurance. No municipalities have payment provisions for drivers who do not have insurance to pay for this service.

At present, 13 states (AL, AR, AZ, FL, GA, IN, KS, LA, MO, OK, PA, TN, UT) prohibit the collection of accident response fees.