Sacramento 'crash tax' gets boos from insurers, businesses

[Newsjock]

Source: Sacramento Bee

If there were any doubt, California's insurance industry made absolutely clear today how much it abhors a proposed "crash tax" in Sacramento.

Sam Sorich, president of the Association of California Insurance Companies, plans to testify Tuesday before the City Council against the proposed ordinance.

Under the plan, out-of-town drivers who are at fault for wrecks would be billed fees that would range from a minimum of $435 every time the Fire Department shows up at an accident scene to $2,275 if a helicopter is called in to transport an injured motorist.

Sorich says that if the fees are imposed, Sacramento would operate like a small-town speed trap and gouge unwary drivers.

Read more: http://blogs.sacbee.com/the_swarm/2010/08/sacramento-crash-tax-gets-boos.html

[Sinistrous]

1. Upside. Downside.

Upside: The citizenry would no longer have to pay out for the stupidity/carelessness/lawbreaking of those responsible for accidents.

Downside: This law/policy would wreak havoc on the cost of auto insurance, unless the insurance companies set a humongous deductible for these charges.