In an Accident? Be Prepared To Pay More If You Are Hurt!
In what can only be called a troubling sign of the times, the Fire Department of the City of New York has announced a "crash tax" that will take affect next summer. The crash tax essentially charges anyone involved in a car accident needing FDNY assistance from $365 - $490, depending on the severity of the accident. The FDNY has said that the purpose of the crash tax is to relieve the burden of the taxpayer from footing the bill for emergency response and to place it on those that were at fault and their insurance company. Despite the FDNY statements, all drivers are going to be charged, regardless of whose fault the accident was. Ambulances in New York City already charge $400 - $500 for transportation to a hospital and the crash tax will double that bill.
Will this lead to some other, outside determination of liability or fault by a City of New York agency? Will they review the police reports and try to determine fault? If such a panel is ever created, that would create a third forum in which fault is decided, adding to the arbitration agreements between your insurance company and any lawsuits resulting from the car accident.
Some have questioned whether car insurance would actually cover the cost of the crash tax. In New York State, each and every car insurance policy includes coverage for economic losses resulting from a car accident. This coverage, known as no-fault, currently pays for the ambulance bill, regardless of who was at fault. I would see no reason why the current no-fault law would deny payment of the crash tax.
Will your insurance go up? Probably. Will there be an outcry for tort reform, blaming accident lawyers for your increase in insurance premiums? Absolutely. What is really happening here is that a cash-strapped municipality is seeking to close a budget gap by going after insurance. The City of New York is one of the most aggressive in defending lawsuits for personal injuries, frequently stating that settlements are passed on to the taxpayer. They are now forcing consumers into the same predicament as insurance carriers are definitely going to pass on the increase through higher premiums. Although the City has the opportunity to defend themselves before they have to pay money, they have magically taken away your right to do so, charging everyone. Is that fair?
