That’s what happened to Cary Feldman, 71, of Chicago, who was rear-ended while driving his motor scooter and wound up on the pavement. Feldman was not seriously injured and didn’t go to the hospital, but that didn’t stop firefighters from showing up briefly and then charging him for their time.

 

Feldman insisted if anyone should pay, it should be the other driver who hit him. But the other party and their insurance company refused to cover the crash tax (or “resource recovery”), as did Feldman’s own insurer, so he was left with a bill for $200, which he had to pay to avoid damage to his credit rating.

 

“We're paying taxes for these services,” Feldman told CBS in Chicago. “We don't need to have a second tax….I'm going to call it a scam. Just a way to make money instead of helping people.”

 

Local governments are increasingly turning to crash taxes to help offset budget cuts to public safety operations. But many insurance companies refuse to pay them, leaving customers on the hook.

-Noel Brinkerhoff

 

A Crash. A Call for Help. Then, a Bill. (by Christopher Jensen, New York Times)

Traffic Accidents are Bad Enough; PCI Cautions Labor Day Motorists that many Cities Now Charge a Crash Tax (Property Casualty Insurers Association of America)

Man Billed 'Crash Tax' For Emergency Response (by Dave Savini, CBS 2 News, Chicago)