Get Ready For Increased Cost Of Auto Insurance

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.


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