The Indiana legislature has passed a bill to prohibit municipalities from charging fees for having local police and fire departments respond to traffic accidents.

Approved unanimously by both houses on March 5 and sent to Gov. Mitch Daniels, the measure was supported by insurance trade groups, who say the costs of police responding to an accident are already covered by taxes and an additional fee is simply a cost burden for consumers and insurers.

Joseph Thesing, National Association of Mutual Insurance Companies state affairs director, said the insurance industry is "cautiously optimistic" that the measure in Indiana will be signed by Gov. Daniels.