Drivers Worry Accident Fees May Raise Auto Insurance Rates
10/06/2010

A new poll shows that the majority of Californian respondents opposed accident response fees, especially when they are charged to auto insurance companies.

Online PR News – 06-October-2010 – – New poll results from the Insurance Information Network of California (IINC) show that the potential for crash-response fees to push auto insurance premiums upward is causing a majority of drivers in the state to oppose such fees.

Participants in the poll were asked about their feelings toward municipalities’ charging out-of-town motorists who cause accidents for the cost of the emergency response. Initially, half of the 800 respondents said they opposed the fees. But when told that insurers would likely be getting the bill, and that this could eventually lead to higher premiums, the opposition grew by 13 percentage points.

Most people know that looking for car insurance with accidents on their records will likely result in higher quotes. But, the IINC asserts, insurers' having to pay for accident response fees in addition to the normal damages could lead to even higher rates for coverage.

A report to the Florida State Senate — which later banned the practice — in 2008 looked closely at the state’s municipalities charging out-of-town motorists with such response fees. It showed that cities had been implementing the fees on the grounds that responses from fire and police to out-of-town drivers’ accidents do not benefit local taxpayers who pay for the services. The authors of the report also found that insurers’ handling of the fees were inconsistent, with some declining to pay them. The report says that, “Several large insurers question the validity of the fees and refuse to pay them, arguing they are improper user fees since local residents already pay for these services through property taxes.”

Source: http://goo.gl/AUzF

To learn more about the effects that crashes can have on premiums, readers can go to http://www.onlineautoinsurance.com/learn/how-accidents-affect.htm where they will also be able to compare prices for coverage with the free quote-comparison generator.

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