An insurance board says the annual fee that Michigan drivers pay for some personal injury costs will increase 6 percent to $186 per year starting July 1.
The Michigan Catastrophic Claims Association announced the fee Wednesday. The current cost is $175 per vehicle.
The state's no-fault insurance law requires insurance companies to pay the annual assessment to cover personal injury (PIP)benefits.
The association reimburses insurers for costs above $500,000 for the care and treatment of seriously injured auto accident survivors.
Insurance companies operating in Michigan are required to pay the assessment to the MCCA under Michigan’s No-Fault insurance law.
PIP coverage is mandatory and provides for the payment of unlimited, lifetime medical auto insurance benefits.
The cost of these benefits is reflected back in the insurance premiums all Michigan policyholders pay.
The Coalition Protecting Auto No-Fault is suing the association seeking detailed information about how it calculates the assessment, and the coalition criticizes the announcement.
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