The fact that seventy-six percent of adults oppose the implementation of accident response fees is not surprising. Accident response fees cost insurance companies thousands of dollars per response. The cost is then spread to insurance consumers through increased premiums. The process is essentially double taxation because the same consumers that pay the increased premiums also pay the local taxes which fund emergency response services.

Municipalities in support of accident response fees argue that the fees provide additional funding to communities without having to increase local taxes. However, reports show that only 10 to 15 percent of the fees collected actually go to municipalities. The remaining percentage typically goes to billing companies.

Upon recognizing the failure of accident response fees, several states have wisely begun to do away with the fees. For example, thirteen states, Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Kansas, Louisiana, Missouri, Oklahoma, Pennsylvania, Tennessee, and Utah, have banned accident response fees altogether while thirty-five municipalities, including New York and Virginia, have struck down proposed laws that would allow municipalities to charge the fees.

Accident Response Fees

Municipal Accident Response Fees