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Crash Tax for Out-of-Town Drivers

Sacramento City Council has recently agreed upon implementing a “crash tax” on out of town automobile drivers. This crash tax will have a fire recovery charge making out of town drivers pay to cover the fire department service fees that are involved in the crash. This crash tax will have to be paid only if the out of town driver is at fault. Business owners within the city that live outside the city are safe from being charged with the crash tax.

Out of town drivers insurance companies will receive the bill for this new crash tax.

The crash tax was opposed by the Association of California Insurance Companies but did understand WHY Sacramento has implemented the tax in their city. “Given the difficult economy, it is understandable why the City of Sacramento is looking for new revenue sources. However, putting this burden on out-of-town drivers is unfair,” said Sam Sorich, ACIC president.

Source:

Insurance Journal

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Mike Spicer / 714-255-5650 / mike@allcountyins.com

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