Debate Resumes Over Billing Auto Insurance Cos. For Accident Response

Summary


NEWARK, N.J., Dec. 14, 2010 /PRNewswire/ -- The debate over accident-response fees has been rekindled after it was announced last week that the fire departments of two cities -- Salem, N.J., and New York, N.Y. -- will be requiring drivers who cause serious accidents within their borders to reimburse local governments for the cost of responding to those accidents. Online Auto Insurance recommends that policyholders contact their insurers or agents if they would like to know whether they are covered for such fees.

Imposing fees on drivers and their car insurance companies to recoup the cost of emergency response is nothing new. Although the issue has gained wider visibility in the last year with cities and counties struggling to make budgetary ends meet, states have been investigating the practice and have even been passing bans on it since 2008.

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Extract


Debate Resumes Over Billing Auto Insurance Cos. For Accident Response

The basic idea behind the accident-response fee -- called the "crash tax" by some -...

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