If you are in a car accident or a truck accident while travelling through East Point, Georgia, just southwest of Atlanta near College Park and the Atlanta International Airport, you may be assessed motor vehicle accident response fees for city emergency services such as police, fire and rescue. East Point City Council passed an ordinance charging fees from $100 to $300 per emergency vehicle for certain motor vehicle accidents within the city limits.
Even though the State of Georgia has banned the practice of imposing car accident fees on insurance companies for emergency response services to car or trucking accidents, third party collection companies and municipalities have found a gold mine in a loophole which allows the assessment of car crash fees against citizens. In East Point, they are assessing nonresidents who are at fault in accidents within the city limits. The third party collection agency bills the insurance company for the fees assessed against the insured. The fees are paid by the insurance company and can eventually result in higher insurance rates for the consumer.
The first to get paid from these fees is the third party collection company which takes the first cut; the balance goes to the city. Of course, if you don't have insurance, the third party administrator has no one to bill and it is doubtful they will try to collect from you. But if you are a law abiding citizen who has auto insurance and you are a nonresident who is at fault in an accident in the city limits of East Point, your insurance company will be getting the bill.
East Point is not the first to consider these fees as many other municipalities throughout the United States have been approached by the third party collection companies offering a quick way to increase income. Many have declined to impose the controversial accident fees after public discussion. This backdoor tax is a way for struggling municipalities to fund their services. Whether it is fair or not it creates a tremendous amount of ill-will between residents and nonresidents. What will be the effect on the businesses within these cities? Will nonresidents go elsewhere to do business rather than East Point? What a shame since East Point has some wonderful restaurants and parks including Connally Nature Park home to the largest White Oak tree in Georgia.
Read more:
Official Code of Georgia. See 33-8-8.2(e) for law on accident response fees.
Georgia Insurance Commissioner for consumer information on auto insurance.
