Auto insurance fee for catastrophic injuries rising to $170

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MDOT Traffic Camera - US-131 at Ann Street

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.

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7 comments

  • George

    Total bull sh##. Why do I have to pay for somebody else’s mistake. The person injured should go after the person who hit them, not all of the drivers in the state. This is costing me more than the insurance portion of my policy.

  • On It

    I agree with George! We have one of the highest gas taxes in the nation, they just froze the registration fees to never go down as the car ages, now this!!! I’m getting sick of being taxed to death from this state! All other states have better roads with less grief!

    • Kevin Rahe

      Do you have a reference to back up the assertion that registration fees won’t “go down as the car ages?” News reports about the new registration fees implied that they will continue to be based on the “value” of the vehicle, which will certainly go down, rather than the price you originally paid for it.

      I agree with getting rid of unlimited insurance, however. Unless Congress ditches the part of the ACA that removes lifetime limits on healthcare coverage, most people will be able to use their health insurance to cover anything that their auto insurance wouldn’t.

  • bill

    If you read about this entire program – It’s basically extortion!!, but because it’s a state law that makes it legal for them to take everyone’s money (who legally drive), we have to sit back and take it.
    This would be a great investigative story for the “Problem Solvers” to look into.

  • Chris

    Dang, I better remember that at review time. Employees need to treat their labor like a product on a shelve for sale. Cost go up you pass it on to employers and they pass it to consume.

  • chuck ahrens

    Michigan is the only state and we need to change it. There is no oversight to this board/fee. It’s crap. When I started driving it was $91. Also, $31 per car for “administrative fees”? What could possibly cost that much?