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New York City motorists may be in for a surprise once Mayor Michael Bloomberg’s ordinance to collect “crash tax” becomes in-effect. The “crash tax” also referred to as an “accident tax” collects every time a car accident occurs. Why? The tax is used to offset the city’s cost to come out and service the car accident—police, firefighters, and ambulances cost the city money, so the tax is used to make up for the deficit, according to The Wall Street Journal.

The crash tax is New York’s response to serious budgetary constraints. Call it panic or brilliance, but the city intends to apply the crash tax anytime a person is involved in a vehicle accident, and insurance companies will not cover the cost.

The crash tax will cost motorists $490 for a vehicle fire or any other car accident incident involving injuries. A car fire with no personal injuries is discounted–$415 pays that crash tax. And, if motorists are lucky enough to escape their car accident with no fires or injuries, they will pay $365.

“We can no longer afford to provide [services] at no cost to those who require them,” a statement from the FDNY said. “Right now if you’re at fault in an accident or a vehicle fire, you get a free ride. And that should not be borne by the taxpayers.” says Steve Ritea, spokesman for the FDNY.

New Yorkers may be outraged, but a similar crash tax law is already in-effect here in California. For San Diegans, you don’t have to go any further than National City to get your first crash tax if you’ve been involved in a car accident. And, other cities throughout California are taking the hint: Los Angeles, Riverside, San Diego, Orange, Sacramento, Oakland, Palm Springs, and Ontario have approved or are considering it.

As with any bill or new government initiative, there are its appropriate pros and cons. Motorists should be aware of how the crash tax may possibly affect them, especially if they are not at-fault in a car accident. Some possible concerns against the crash tax include:

Good, responsible drivers may be more prone to a hit-and-run car accident. If California motorists face a crash tax, they may be more inclined to leave the scene of an accident to avoid the out-of-pocket expense. Since insurance companies won’t foot the bill, it’s up to the motorist to pay.Motorists will shy away from calling police when necessary. A car accident is bad enough; no one wants to pay additional money on top of their insurance deductable, time off work, and rental cars. Having to pay a crash tax may cause motorists to stop alerting police to review the scene of an accident, even if there are injuries or serious concerns at the scene of the car accident.Personal injury on the scene of a car accident may worsen. If a motorist is afraid of paying the crash tax, he or she may not call an ambulance when necessary. Will drivers sustaining whiplash start driving themselves to the hospital, just to avoid the extra tax? Personal injury can worsen if left untreated, but some drivers may be hesitant to call for help when needed.

If you have been injured in a car accident, our personal injury attorneys can provide a free legal evaluation of your case. Call us now at 1-800-655-6585 or fill out our online form for an immediate response from one of our personal injury attorneys.

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