FPCA Automobile Division: Miami Herald Editorial on Statewide Accident Fee Ban

Mar 30, 2009

An editorial from the Saturday, March 28, 2009, edition of the Miami Herald regarding a proposed statewide ban on accident fees is reprinted below for your review.

 

Local perspectives

Miami Herald--March 28, 2009

TALLAHASSEE

BAN THE ‘CRASH TAX’ THROUGHOUT STATE

As a general rule, we think state lawmakers should stay out of the everyday affairs of local government. Local decisions are best left to officials closest to the situation.

In some instances, however, when local officials go astray it is appropriate for legislators to step in. This is one such case. The state House of Representatives is considering a proposal to prohibit cities and counties from billing people involved in traffic accidents within their jurisdictions. This time it makes sense for the Legislature to ban what has been dubbed the ”crash tax.”

Charging a fee

As local governments have seen revenue drop, some have begun imposing recovery fees on people involved in accidents that require emergency responders. Hialeah was one of the first to begin charging a fee, usually assessed against a driver’s insurance company. Davie is considering a similar plan, and so, too, are cities in the Tampa Bay area.

Responding to accidents is no small expense in cities, especially those encircled by expressways. Davie estimates that it spends around $695,000 a year to send police and fire-rescue personnel to crashes.

But creating a hodgepodge of so-called ”recovery costs” around the state isn’t the answer. That would mean a driver unfortunate enough to be T-boned in one city will be billed — or his or her insurer will, guaranteeing a rate hike — whereas if the accident had happened a few blocks away there would be no such fee.

Some legislators argue that this isn’t a local government problem, but an insurance issue. These lawmakers think the right to impose fees is the Legislature’s. That’s a bad idea, too. Doing so would be just an excuse for the state to find a new revenue source.

New cash cow

Charging accident victims should be banned, period. That would be just another tax masquerading as a fee that sticks it to beleaguered Florida drivers already stuck with high insurance rates. Cities and counties already assess hefty fire fees and taxes to support their first responders. They shouldn’t be allowed to use drivers in accidents as a new cash cow. As for the Legislature, lawmakers should ban cities from ”cashing in” on accidents that just happen to occur in their area and resist the urge to collect easy money on behalf of the state.