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wedrifid comments on Rationality quotes: October 2010 - Less Wrong
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Multiple paragraph parenthesising - nice!
An analogy that fits better is that of simple gym membership. "I haven't paid a gym membership for this year but I really want to go to the gym today. How much do you charge?" There is no particularly good reason why the fire putting out service must be a subscription service or insurance model.
The ambulance service, at least the one we have here, seems to be practical. You can get a membership. If you don't have one then when you wake up in hospital you'll have a bill to pay. If you needed a helicopter rescue it'll be a big bill.
I've been told that the cost of deploying the fire department runs into several thousand; this would be a pretty nasty invoice to get in addition to fire damage. The insurance model makes it easier to pay.
Also, in that specific incidence, it wasn't their fire-department. The township was getting fire services from the next station over; not their own. They had to pay monthly fees for this, so without a monthly payment, they wouldn't be convincing those guys to maintain service.