Michigan Auto Insurance Fee for Catastrophic Injuries to Increase

March 24, 2016

The annual auto insurance fee that Michigan drivers pay toward caring for people catastrophically injured in crashes is rising to $160, a $10 increase.

The Michigan Catastrophic Claims Association announced the new per-car assessment for the 12 months starting July 1.

The Livonia-based group collects funds to reimburse auto insurers for personal injury protection claims that exceed $545,000 per claim. It paid out $1.1 billion in 2015, mostly for brain and spinal cord injuries, multiple fractures, and back and neck injuries.

Of the $150 being assessed, about $140 will cover anticipated new claims and $19 will address a $1.3 billion estimated deficit for existing claims. Another $0.40 will go to administrative expenses.

Michigan is the only state that requires drivers to buy unlimited medical benefits.

Topics Catastrophe Auto Michigan

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