East Point GA Now Charging Car Accident Fee after Car Wrecks

East Point GA Now Charging Car Accident Fee

8/25/2009 - DUFFIE DIXON

EAST POINT, Ga. -- If you're merely passing through the city of East Point and cause an accident you're going to get hit in the wallet a little harder than usual.

The East Point City Council recently passed an ordinance that charges non-residents who are found at fault for a car accident an extra fee to cover the emergency response costs. Specifically, the city wants to try to cover the money it takes to roll out fire trucks and paramedics.

"We're really identifying parties that need to bear the brunt of that cost. Our citizens already pay taxes for police and fire and things of that nature. People outside the city do not," said Mayor Joe Macon.

A number of cities nationwide have similar accident response fees charging anywhere from $100 to $300 per police or fire truck run.

The city of East Point has developed a sliding scale of fees. The mayor says a call involving one fire truck would likely run about $248, but with every added response vehicle or if there's something like a hazardous spill it could cost up to $1,000.

According to Georgia Insurance and Fire Safety Commissioner, John Oxendine, it is legal to institute municipal fees. In fact, he says many cities used to charged non-residents directly for costs incurred during emergency calls, but state legislators have since banned the practice.

Oxendine calls what East Point and other cities are doing now is a "loophole" because they use a third party company to process the paperwork, file it with insurance companies and then take a percentage of what's collected.

"I think that is very bad public policy. I think that it is a local government trying to find a way to make a few extra dollars without calling it a tax increase, but it basically is a tax on Georgia cititzens," said Oxendine.

Oxendine also says charging insurance companies extra fees will ultimately raise rates for all Georgians.

"Insurance companies are not just a piggy bank for local governments to go and get money from. It's going to affect our rates and all automobile insurance rates will go up," said Oxendine.

Mayor Macon insists the council consulted with the Georgia Insurance and Fire Safety Commission before drafting the fee legislation and has not been shown any hard data to back up Oxendine's claim about insurance rates rising.

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