Speed Trap Hunter Forum: Best Radar Detectors, Laser Jammers, Laser Detectors, Speed Cameras Forum  

Go Back   Speed Trap Hunter Forum: Best Radar Detectors, Laser Jammers, Laser Detectors, Speed Cameras Forum > Speed Trap & Traffic Enforcement > Economics & Politics
Radar Detectors Forum Logon:


Economics & Politics Discussion of the economic and political market driving factors of automated enforcement technology.

Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 2011-08-23
NMA Reporter NMA Reporter is offline
Senior Member
 
Join Date: 2008 Feb
Posts: 125
NMA Reporter is on a distinguished road
Exclamation Tampa, Florida Incentive to Increase Automobile Insurance Rates

Article: Tampa, Florida Incentive to Increase Automobile Insurance Rates

Chief Jane CastorThe city council in Tampa, Florida this month began deciding how it would spend revenue from the red light camera program expected to go online next month. Officials calculated that the automated ticketing machines would bring in an extra $2 million a year, an important amount for a city facing a $34.5 million budget deficit.

Police Chief Jane Castor had proposed to the city in March that it sign a contract with American Traffic Solutions. Castor and members of her department personally profit from any ticketing system linked to an increase in automobile insurance rates. This is so because the state imposes a tax on car insurance that is deposited as a "state contribution" in each municipality's police pension fund. Based on city figures, the 0.85 percent tax pumped an extra $8,158,217 into Tampa police pensions from a total of $1 billion in added insurance costs paid by Tampa drivers between 1999, when the current system was imposed, and 2009.

The primary source of that premium increase has been the boost in the number of traffic tickets issued by Tampa police. In 1999, the city wrote 30,000 citations. Just four years later, there were 87,000 tickets -- and a 40.6 percent increase in insurance premiums. By 2005, the ticket total was a whopping 140,000.

The extra cash reduced the amount individual members had to contribute to the pension fund, leaving officers with more take-home pay. In 1999, officers paid 6.45 percent of their salary into the retirement fund -- about equal to the average rate paid over the past 27 years. Thanks to the influx of new cash, the rate dropped to 1.8 percent in 2002. In 2006 it was 1.18 percent. Stock market turmoil and investments turned sour, however, raised the contribution required significantly above the average in 2004, 2005 and 2011.

The Tampa Police Department has been sued over traffic ticket quotas and the mandatory practice of issuing a traffic ticket at the scene of any accident, even if the attending officer had no way to determine fault. By 2008, the lawsuit forced Tampa Police to change its ticketing policy and the insurance premium tax declined accordingly in 2008 and 2009.

Comprehensive, independent studies show red light cameras can cause a an increase in the total number of accidents at the intersections where they are installed (view studies). This would result in an increase in police pension funding, according to a 2008 red light camera study by the University of South Florida.

"Increases in crashes can raise the risk rating of drivers in a community, which can lead to disproportionately higher automobile insurance premiums, and, subsequently, rising profits for insurers," the researchers concluded (view study). Source
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tampa, Florida Incentive to Increase Automobile Insurance Rates NMA Reporter Economics & Politics 0 2011-08-23 08:33
Why Mandatory Car Insurance Hurts Good Drivers NMA Reporter NMA Articles 0 2010-11-11 17:09
Compulsary Insurance Won’t Work NMA Reporter NMA Articles 0 2009-08-23 00:44
Insurance Industry Behind Push for Florida Red Light Cameras NMA Reporter Economics & Politics 0 2008-11-12 22:01
Goldman Sachs to Raise Automobile Insurance Rates NMA Reporter Economics & Politics 0 2008-09-29 08:14


All times are GMT -4. The time now is 12:42.


©2019 SpeedTrapHunter