Personal Injury Law

Crash tax being debated in some states

By Ryan Bradley, Esq.

While the economy is slow in recovering and local municipalities are feeling the pinch, some areas around the country have turned to what many call a "crash tax" as a way of saving some money.

The idea behind a crash tax or accident fee is that a charge will be assessed those involved in a serious car accident to pay for the cost of handling that accident. Many areas have had such fees for years, but the idea is gaining more traction in cash-strapped states, like California.

In a lot of cases, a driver's insurance policy will cover the cost of the accident fee, but not in every case. It would be a good idea to check your own policy and the laws in your city to know if you may be on the hook for one of these charges should you be involved in a wreck.

Theses types of fees vary widely from city to city, but to give you an idea of the costs we are talking about, some fire departments charge over $600 to put out a burning car, $1800 to use the jaws of life and more than $2,000 for an airlift to the hospital.

Legislators who allow these laws on the books argue that emergency response is an expensive job and these fees are necessary to recoup costs. Opponents argue that tax dollars already go to emergency responders and that an accident fee is excessive or even cruel. Some people who know about the fees may refuse needed medical care or fail to report an accident at all out of fear of being hit with one of these fees.

Here in Missouri, along with nine other states, we have banned any so-called crash taxes. This is not the case across the river in neighboring Illinois. One thing illustrated by the notion of crash taxes is the complications involved in handling a car accident injury claim. Laws vary so much from state-to-state and city-by-city that it is imperative you seek an experienced personal injury attorney with extensive knowledge about local laws if you are involved in a crash.

Full post as published by Missouri Accident Lawyer Blog on September 05, 2010 (boomark / email).