LIVONIA, Mich. (AP) – 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.