Pa. Bans Charging Insurers For Auto Accidents

Pennsylvania has banned municipalities from charging fees for their police departments answering calls to automobile accidents.

The bill, HB131, passed the state Senate Tuesday by a 49-0 vote. The state Assembly passed the legislation in May by a 190-7 vote. Insurers provided strong support for the measure.

Municipalities are still allowed to charge for the reprinting of accident reports but cannot charge a fee or seek reimbursement for the cost of their police departments responding to a motor vehicle accident.

"Pennsylvania is demonstrating leadership by advancing this legislation," said Angela Zaydon, regional manager and counsel for Property Casualty Insurers Association of America (PCI), in a statement.

She called the practice a form of double taxation because police services are paid through local taxes and are not covered by insurance. The cost was ranging from $100 to as much as $2,100.

Local municipalities, strapped for cash, were using the fees to help cover costs, she noted.

In Indiana the state legislature is considering a similar ban. HEA1274 received legislative approval in May, before Pennsylvania's passage, but the bill was vetoed by Gov. Mitch Daniels.

In Indiana, municipalities' charges can range anywhere from $200 to $500.

Jay Kenworthy, a spokesman for the Insurance Institute of Indiana, said Gov. Daniels' opposition to the bill arises from a provision that would cap accident report fees at $8.

The state police report fees are $12 and are handled by a private vendor. Mr. Kenworthy said the governor has said he feels such a cap would not cover the real cost of producing accident reports.

There are indications, he went on to say, that the legislature is trying to work out a compromise on that part of the issue.

He said the governor has no opposition to banning municipalities from charging for accident response.