Michigan Catastrophic Injury Premium to Go to $175 Per Car

March 19, 2012

Michigan drivers will pay $30 more for auto insurance starting July 1 to care for accident victims who have brain damage, paralysis or other catastrophic injuries, raising the annual fee to $175 per vehicle.

The Michigan Catastrophic Claims Association announced the 21 percent premium increase on March 16.

Lawmakers are discussing bills that would allow motorists to choose among various levels of personal injury protection coverage, rather than mandating uncapped coverage. Opponents say that wouldn’t guarantee lower rates.

Regular auto insurance policies handle coverage up to $500,000, after which all insured motorists are assessed the additional fee to cover more severe cases.

The association covers medical bills for roughly 12,800 accident victims across the state. Last year it paid out $927 million in claims resulting from catastrophic injuries.

Topics Catastrophe Auto Michigan

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Latest Comments

  • January 11, 2013 at 8:08 pm
    John Gardner says:
    Julius Sadabo, It has NOTHING to do with the helmet law! The fee was enacted because people are suing at the drop of a hat. I'm sure,if YOU had an accident,you would be on the... read more
  • October 10, 2012 at 8:23 am
    RICHARD FLACK says:
    IF I OWN A FLEET OF VEHICLE DO I PAY FOR EACH ONE OR IS THIS COVER ON ONE POLICY
  • June 20, 2012 at 8:45 am
    Julius Sadabo says:
    A plain and simple explaination: this premium is going up because of the change in the helmet law in Michigan. Less motorcyclists wearing helmets = more severe head injuries a... read more

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