A growing number of California municipalities are looking into the use of a new revenue source known as the “Crash Tax”. The Crash Tax is an accident response fee directed toward non-residents involved in an accident, regardless of fault. The term “non-resident” is defined as a person that lives outside of the city limits. Therefore if you live and work in different cities within the county you may be at risk of paying the Crash Tax every time you commute to work, even if another party is responsible for the damage to your vehicle (remember, the tax applies regardless of fault).
The justification for this tax is that it will assist the local Police and Fire departments in recovering dispatch and personnel costs. Fees can range upward of $500 per accident, and insurance does not typically cover this cost. This tax may or may not apply in your city.
For additional information please contact your San Diego Insurance professional, or visit http://www.calcrashtax.com/.
