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Auto insurance fee for catastrophic injuries rising to $170

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Posted at 12:03 PM, Mar 14, 2017
and last updated 2017-03-14 15:16:50-04

The annual auto insurance fee Michigan drivers pay toward caring for people catastrophically injured in crashes is rising to $170, a $10 increase.

The Michigan Catastrophic Claims Association announced Monday the new per-car assessment for the 12 months starting July 1. It increased by the same amount last year.

The Livonia-based group collects funds to reimburse insurers for personal injury protection claims exceeding $555,000 per claim. It paid $1.1 billion in 2016, mostly for brain and spinal cord injuries, multiple fractures, and back and neck injuries.

The association says about $140 of the total will cover anticipated new claims and $26 will address a $1.9 billion estimated deficit for existing claims. Another 40 cents goes toward administrative expenses.

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