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At-Fault Accident Fee Gets Initial OK

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By CHRISTIAN M. WADE The Tampa Tribune

Published: February 27, 2008

PORT RICHEY - The city council on Tuesday night tentatively approved a proposal to charge auto insurance companies and most nonresidents who cause accidents within city limits a fee to cover emergency services.

The vote was 5-0.

Cost-recovery programs have become an attractive revenue source for municipalities in Florida, many of which are struggling amid state-mandated property tax changes. The fees, collected by a company that specializes in cost recovery, are based on the time and materials devoted to the accident and assessed on statewide and national averages.

If the insurance company refuses to pay, the cost-recovery company will go after the nonresident who caused the wreck. If a city resident is at fault, the fee is forgiven.

The measure, which will become law if the council approves it a second time, will make Port Richey one of a growing number of cash-strapped communities across the country that are billing at-fault out-of-town drivers and their insurers to recoup some costs of responding to and clearing traffic accidents.

In the past several years, communities in at least 15 states across the country have passed similar ordinances. But the practice has caused a backlash from drivers and insurers, and a few communities already have moved to rescind their ordinances.

Critics argue that the fees will drive up insurance rates and hurt local businesses.

Reporter Christian M. Wade can be reached at (727) 815-1082 or cwade@tampatrib.com.

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