Michigan Township Billing Non-Residents Who Have Accidents in Their Municipality

If you cause a car accident in Mt. Morris Township, Michigan, and you don't live there, you might receive a bill in the mail for police services and equipment that the township's residents pay for via their taxes. To make matters worse, your insurance company might not cover those costs. It's called the "accidental cost recovery ordinance," but maybe it should be renamed the "Mt. Morris Township wants to make a quick buck on non-residents."

Margaret Lazell learned about the ordinance the hard way after her daughter totaled her car in a car accident while passing through the township. Lazell received a bill from the police for their services since they were called to the scene of the accident. The bill came to $301, an amount that her insurance company, Auto-Owners, won't cover since her daughter "was not trapped in the car and police or fire crews did not have to cut her out." Looks like Lazell will have to cover the fees out of pocket. 

Some municipalities have cost recovery ordinances to cover expenses accued for incidents such as drunken driving arrests, car impoundments, or hazardous waste cleanup, but Mt. Morris's accidental cost recovery ordinance is unique. The township insists that the fees are set up to recoup money from accidents that are mostly caused by non-residents. 

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Stephen Phillips, the owner of Phillips Insurance Co., which represents Auto-Owners, said he's never heard of an accidental cost recovery ordinance before. The fees may not be something an insurance company is familiar with, but they may soon be more common because other townships in Michigan are considering adopting a similar ordinance. 

This unusual story should serve as a cautionary to drivers that their auto insurance coverage may not include recouping costs for police and firefighter response. Obviously not being at fault for an accident is the best course of action, but you may want to research what your insurance coverage entails when it comes to covering local ordinances--you certainly don't want to run into any surprise fees when you expect your insurance to cover everything.