Ariz. Cities Barred From Charging Auto Insurance Cos. for Emergency Responses
The governor of Arizona signed in law on Wednesday a ban on emergency-response fees
(EMAILWIRE.COM, April 15, 2011 ) Tucson, AZ -- Arizona cities, towns and other municipalities will not be able to bill drivers and their car insurance companies for the cost of responding to accident scenes, thanks to a ban on such fees signed into law on Wednesday by Gov. Jan Brewer.
Supporters of the new law say that it will provide important consumer protections and help maintain access to the best auto insurance rates in Arizona.
The new law targets emergency-response fees, which have been popping up in cities across the country in recent years. They require drivers or their insurance providers to compensate municipal entities for law enforcement and fire departments’ response to crash scenes. In some cases, the fee schedules require motorists to pay around, for example, at least $400 for every accident that a fire department responds to.
Opponents of the fees say that the practice amounts to double taxation, since residents already fund fire and police departments through sales and property taxes. They also say that they could ultimately lead to higher insurance rates for all, since insurers’ agreeing to pay for the fees would drive up the average claim size, which could end up translating to higher premiums.
The law is a preventative measure. No Arizona municipalities currently have crash-response fees, according to individuals who testified at a House Transportation Committee meeting on the matter.
A number of exceptions were outlined in the bill. Drivers and insurers can still be billed for ambulance services, environmental cleanup costs and a number of other reasons.
Also included was an exception for intergovernmental billing. This exception was added because some of the larger municipalities in the state provide emergency services to smaller entities that cannot maintain their own emergency services.
Source: http://www.azleg.gov
Arizona is only the latest in about a dozen states that have taken legislative action regarding these fees.
To learn about this and other Arizona car coverage issues, readers can go to http://www.onlineautoinsurance.com/arizona/ where visitors will find informative resource pages as well as a quote-comparison generator that can help drivers in any state track down the best prices for a policy.
Supporters of the new law say that it will provide important consumer protections and help maintain access to the best auto insurance rates in Arizona.
The new law targets emergency-response fees, which have been popping up in cities across the country in recent years. They require drivers or their insurance providers to compensate municipal entities for law enforcement and fire departments’ response to crash scenes. In some cases, the fee schedules require motorists to pay around, for example, at least $400 for every accident that a fire department responds to.
Opponents of the fees say that the practice amounts to double taxation, since residents already fund fire and police departments through sales and property taxes. They also say that they could ultimately lead to higher insurance rates for all, since insurers’ agreeing to pay for the fees would drive up the average claim size, which could end up translating to higher premiums.
The law is a preventative measure. No Arizona municipalities currently have crash-response fees, according to individuals who testified at a House Transportation Committee meeting on the matter.
A number of exceptions were outlined in the bill. Drivers and insurers can still be billed for ambulance services, environmental cleanup costs and a number of other reasons.
Also included was an exception for intergovernmental billing. This exception was added because some of the larger municipalities in the state provide emergency services to smaller entities that cannot maintain their own emergency services.
Source: http://www.azleg.gov
Arizona is only the latest in about a dozen states that have taken legislative action regarding these fees.
To learn about this and other Arizona car coverage issues, readers can go to http://www.onlineautoinsurance.com/arizona/ where visitors will find informative resource pages as well as a quote-comparison generator that can help drivers in any state track down the best prices for a policy.
Contact Information:
Online Auto Insurance, LLC
Benjamin Zitney
Tel: 909-784-2475
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Benjamin Zitney
Tel: 909-784-2475
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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