NewsGetting Around Metro Detroit


Michigan Catastrophic Claims Association raises annual fee to $220

Posted at 4:20 PM, Mar 27, 2019
and last updated 2019-03-28 06:17:48-04

LANSING, Mich. (AP) — Michigan's mandatory fee to cover unlimited medical benefits for injured drivers is rising to $220 a year — a record high — and more than double what is was a decade ago.

The Michigan Catastrophic Claims Association announced the higher assessment Wednesday. It is now $192 annually per insured vehicle.

“From Detroit to the Upper Peninsula, drivers are feeling the pinch of paying the highest auto insurance rates in the nation and it’s time to do something about it,” Gov. Gretchen Whitmer said in a statement. “Michiganders deserve to know why they are being forced to shell out hundreds of dollars in additional fees for car insurance, which is why I’m ordering an audit to provide drivers with the transparency they deserve.”

The organization says the fee hike is due to a higher number of claims, rising medical care costs and lower-than-expected investment earnings.

The fee revenue largely covers care for people with brain, spinal cord, back and neck injuries.

Michigan is the only state to require unlimited lifetime coverage for medical expenses resulting from auto crashes. The Legislature has been at odds over proposals to rein in costs.