Car crash – insurance industry prospective:
There still are several cities in the Sacramento Valley that impose crash taxes. This is an additional fee charged to the parties involved in an auto accident within the City that has a crash tax who are non-residents. The fees vary from one municipality to another. The tax continues to be most controversial and applied in a discriminatory way.
In some cities, if you are a non-resident and involved in an auto accident where the police or fire department are dispatched to your accident, but do not have auto insurance, you may not be charged a crash tax. If the circumstances are the same, but you have auto insurance, you will be charged the crash tax.
In a survey of our client’s accidents at ISU Insurance Services we have found that insurance companies pay crash tax expense on a case by case basis
A recent chat that I had with an auto insurance analyst for a national insurance company, he made the following comments: the current auto insurance rates do not contemplate the crash tax expenses; in his opinion, should these expenses become an issue, that is to say, continue to go and become a large expense to the insurance companies, the industry will just exclude the event expense.
Conclusion, check with your insurance agent to determine if your insurance company will pay for a crash tax.