American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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Contact:

Brooke Kelley-Hunt

Phone:

847-894-3881

Email:

Brooke.kelley-hunt@pciaa.net

 

 

FOR RELEASE ON RECEIPT

April 8, 2014

PCI Testifies Against Double Taxation in South Carolina

COLUMBIA S.C- The Property Casualty Insurers Association of America testified before the St. Andrews Public Service District, opposing a proposal to implement a “Crash Tax” against visiting motorists. The ordinance would charge out-of-area travelers an additional fee when they are involved in an accident, in an effort to garner additional revenue for the county.

The ordinance would charge non-resident drivers through their insurance companies, however accident response fees are not covered by auto insurance policies as they do not fit under the standard definition of either property damage or bodily injury coverage.

“Even if the insurer pays the fee, the consumer could still be impacted financially because increased costs could result in higher auto insurance premiums,” said Oyango Snell, PCI’s regional manager.

“While we value the hard-work and dedication of South Carolina Fire Departments, residents of South Carolina already pay taxes, and should not be charged a separate hidden fee costing anywhere from $300 to $1,000. ”

“While PCI understands the fiscal difficulties facing many municipalities, particularly those in South Carolina, and the challenges associated with meeting these fiscal problems, we do not believe that imposing an accident response fee is the way to bridge this fiscal gap,” said Snell. 

The commissioners voted to table the issue until their May 5th meeting. PCI will continue to oppose this proposal through action and education.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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