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  Written by a towing company, not about one

Your Rights When Your Car Is Towed in Michigan

Most of what people believe about towing law in Michigan is wrong in one direction or the other. Here is what the statute actually says, with the section numbers, so you can check it yourself.

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Governing lawMichigan Vehicle Code
Rate regulationNone statewide
Time to contest20 days from notice
This page isInformation, not advice

Why we are the ones writing this

A Tow Company Explaining the Rules That Bind Tow Companies

There is an obvious oddity in a towing business publishing this page, and it is worth addressing before anything else. The rules below constrain operators like us. Explaining them clearly makes it easier for people to push back on the parts of this trade that deserve pushing back on.

We publish it anyway, for a plain commercial reason as much as a principled one. Almost all of our work is people calling us directly because something has gone wrong — not vehicles taken from private lots against their owner’s wishes. The part of the industry that generates the complaints is not the part we operate in, so we lose very little by being straight about how it works, and we would rather you knew where you stood.

Two warnings before the detail. First, this is general information about what Michigan law says. It is not legal advice, we are not lawyers, and it cannot tell you what to do about a specific dispute over a specific vehicle — for that you need somebody qualified who has heard your facts. Second, statutes change. Everything here was checked against the current Michigan Legislature text, but if you are relying on it for something that matters, follow the section numbers and read the source.

The part most people get wrong

Michigan Does Not Cap What a Tow Can Cost

This is the single most consequential thing to understand, and it surprises nearly everybody. There is no statewide ceiling on towing or storage rates in Michigan. Not for consumer tows, not for private property impounds, and not for police rotation work. Each operator sets their own prices.

Some municipalities impose their own caps by local ordinance — Detroit is the best-known example — but that is a city-by-city matter rather than a protection you can assume exists wherever you happen to break down. In much of the state, including here in Kalamazoo County, the number you are quoted is simply the number that operator has decided to charge.

The practical consequence is that the spread between the cheapest and the most expensive quote for an identical tow can be very large. That is not a scandal in itself; it is what an unregulated market does. What it means for you is that the protection is not in the law, it is in asking for the number before anything is hooked, and in refusing to proceed if the number changes afterward. Any operator unwilling to give you a figure on the phone is telling you something useful about how the rest of the transaction will go.

Section by section

What the Statute Actually Requires

Signage before a private-property tow

Under MCL 257.252k, notice must be prominently displayed at each point of vehicular entry, in letters not less than 2 inches high on a contrasting background, stating that unauthorized vehicles are towed at the owner’s expense. It must name the towing service and give its telephone number.

How that sign must be installed

Permanently installed, with the bottom of the notice not less than 4 feet from the ground, and continuously maintained for at least 24 hours before any vehicle is towed. Where the property has no curbs or access barriers, at least one notice per 100 feet of road frontage.

Where the signage rule does not apply

MCL 257.252l carves out property appurtenant to and obviously part of a single- or dual-family residence. If someone parks in a private driveway, the signage requirements are not what governs it.

When a vehicle becomes abandoned

Under MCL 257.252a, a vehicle removed after a crash, or taken as stolen or to preserve evidence, is considered abandoned if the owner has not redeemed it within 20 days after law enforcement releases it.

The notification duty

Not less than 20 and not more than 30 days after release, the towing agency or custodian must notify the police agency to enter the vehicle as abandoned. The police agency then enters it into LEIN within 24 hours of receiving that notice.

Your window to contest it

A hearing is requested by filing a petition with the court within 20 days after the date of the notice. That deadline is the one people miss, and missing it is what turns a dispute into a settled matter.

A $40 abandoned vehicle fee may also apply. Storage charges are separate from all of this and accrue daily from the moment the vehicle is dropped, which is why the timeline above matters financially as well as legally — the clock that decides your rights and the clock that decides your bill are running at the same time.

If it has already happened

What to Do in the First Twenty-Four Hours

Speed matters more than argument. Every day a vehicle sits somewhere costs money, and several of the deadlines above start running immediately.

Find out where it is and what the daily rate is

Before anything else. If the vehicle was taken from private property, the sign at the entrance is required to carry the towing company’s name and phone number — that is the point of the requirement. Ask what accrues per day and from when.

Photograph the location it was taken from

Specifically the entrances, and specifically whether notice was posted, how large the lettering was, and how it was mounted. If you believe the signage was non-compliant, that evidence disappears the moment somebody puts up a better sign.

Get it out before you argue about it

Retrieving the vehicle does not stop you from disputing the charge afterward, and it does stop the storage meter. Leaving a car in a lot to make a point is the most expensive way to be right.

Note the deadline, in writing, on your phone

If you intend to contest anything, the petition window is 20 days from the date of the notice. Write the actual date down. This is the step people skip, and it is the one that cannot be recovered.

Straight answers

Michigan Towing Law Questions

Is there a legal maximum a tow company can charge in Michigan?
Not at the state level. Michigan does not cap towing or storage rates, so operators set their own prices for consumer tows, private property impounds and police rotation work alike. Some cities impose caps through local ordinance — Detroit is the well-known example — but you cannot assume one exists wherever you happen to be. Your practical protection is agreeing on the number before the vehicle moves, not a statute.
The lot had no sign. Does that make the tow illegal?
It may make it non-compliant with MCL 257.252k, which is not quite the same as answering what happens next — that depends on facts we cannot see and is a question for a lawyer rather than a tow company. What the statute requires is specific enough to check: notice at each point of vehicular entry, letters at least 2 inches high on a contrasting background, the towing service named with a phone number, permanently installed with the bottom at least 4 feet off the ground, and in place for at least 24 hours beforehand. Photograph what was actually there before it changes.
How long before my car is treated as abandoned?
For a vehicle removed after a crash, or taken as stolen or to preserve evidence, MCL 257.252a treats it as abandoned if it has not been redeemed within 20 days after law enforcement releases it. The custodian then reports it between 20 and 30 days from that release, and the police agency enters it into LEIN within 24 hours of being notified. Storage charges are accruing throughout, so the financial pressure usually arrives well before the legal deadline does.
Can I dispute a tow after I have already paid to get my car back?
Paying to retrieve the vehicle does not by itself end the matter, and it does stop storage fees from accumulating, which is why we would generally suggest doing it in that order. The formal route is a petition filed with the court within 20 days of the date of the notice. Keep every document you are given, including the itemized invoice, and photograph the site before anything about it changes. We are not able to tell you whether your particular dispute is worth pursuing — that is a question for a lawyer.
Someone parked in my driveway. Do the signage rules apply to me?
MCL 257.252l excludes real property appurtenant to and obviously part of a single- or dual-family residence from the section 252k signage requirements, so a private driveway is not governed by the posting rules that apply to an apartment complex or a retail lot. That does not mean anything goes, and it is worth a call to your local police department before arranging removal of somebody else’s vehicle.
Do you do private property impounds?
Our work is overwhelmingly people calling us because their own vehicle has stopped — breakdowns, collisions, lockouts, recoveries. That is the business we have chosen to be in, and it is why we can write a page like this without much conflict of interest. If you are a property manager with a genuine parking problem, call and we will talk about it honestly, including what the signage rules would require of you first.

Need a Tow, Not a Legal Argument?

Price agreed on the phone before anything moves. That is the whole policy.

Related: What towing costs · Accident towing · Towing FAQ

Statutory references on this page are to the Michigan Vehicle Code, Act 300 of 1949, as published by the Michigan Legislature. This page is general information and not legal advice. For a specific dispute, consult a qualified attorney.