Say No to Double Taxation and Accident Response Fees in South Carolina

GREENVILLE, S.C. – The Property Casualty Insurers Association of America (PCI) is urging the Mauldin City Council to reject a Motor Vehicle Service Fee ordinance that would charge motorists a new fee or “crash tax” if they’re involved in a car crash.

These additional fees, amount to nothing more than a redundant "back door" tax as citizens believe that they are already paying accident response services through their property taxes. “Accident response fees are often not covered by auto insurance policies as they do not fit under the standard definition of either property damage or bodily injury coverage. If insurers are forced to pay these fees, consumer costs could increase,” said Nancy Egan, PCI state government relations counsel.

“This is bad public policy that adds insult to injury by victimizing drivers twice – once by being in an unfortunate accident and then again with a fee,” added Egan.

Insurers will continue to work with South Carolina lawmakers to support legislation that prohibits municipalities from charging or seeking reimbursement for routine costs or expenses associated with responding to accidents. There are currently 13 states that have passed bans and limitations to prevent local governments from imposing this additional tax.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.