(WXYZ) — Starting July 1, people in Michigan will be shelling out more money for their car insurance.
The Michigan Catastrophic Claims Association, the state entity that reimburses insurers for personal injury protection benefits, is increasing the annual fee to $220 per year - a $28 increase.
The association said the increase is needed to cover an increasing number of claims, rising medical costs, and lower-than-expected investment earnings.
In May, Governor Gretchen Whitmer signed a bill that would give drivers the option of how much personal injury protection they want to pay for, but that will not start until July 2020.
Every three to five years, the Michigan Catastrophic Claims Association is audited. Whitmer's administration has said the newest audit will be accelerated.