In Michigan and other states, insurance companies are being billed by cash-strapped municipalities for fire and police responses to auto crashes.  Municipalities typically charge $100 to $500 for responding to an auto accident, even if there are no injuries or damages.

Generally, auto insurance policies provide coverage for auto accident medical expenses, including ambulance transportation to the hospital, but do not cover fees for fire and police response to the crash scene.  It is not logical for insurance companies to pay for services not covered in auto insurance policies.  Providing coverage for police and fire response would likely result in increased costs that would be passed along to policyholders.

As part of their duties, police and fire officials respond to and investigate auto crashes.  While some municipalities and billing fee companies charge that insurance companies should pay because they are the sole users of police report, it is just not true.  Key beneficiaries of crash reports include personal injury lawyers, hospitals and chiropractors.  The reports are also used by state and local law enforcement for statistical reporting requirements and local media for news reports.

Some municipalities utilize billing fee companies to collect accident response fees.  These companies sometimes use agressive tactics to collect fees and mislead municipalities into believing that all insurance companies will pay these fees.