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Gov. Whitmer orders audit after mandatory auto fee rises in Michigan

LANSING, Mich. – Michigan’s mandatory fee to cover unlimited medical benefits for catastrophically injured drivers is rising to a record $220 per vehicle in July, which is more than double what it was a decade ago.

ORIGINAL STORY: Mandatory Michigan auto fee rising in July; Whitmer orders audit

The current annual assessment is $192 and the $28 rise will take affect July 1.

"Any little increase changes everything at home," said Tom Barnett, a passionate Detroiter who has strong feelings regarding Michigan's car insurance rates.

Barnett said someone needs to look into the rates, which have been steadily growing for about a decade. 

He's not the only one who thinks that, as Gov. Gretchen Whitmer ordered an audit of the Michigan Catastrophic Claims Association on Wednesday.

"Transparency and accountability are important," Whitmer said.

The MCCA works closely with insurance companies for Michigan's no-fault insurance. The money goes into a large fund that covers the cost of medical coverage for those injured in collisions when the cost exceeds $580,000.

It's not the first time the rates went up. There was a rise of $22 in 2018 -- additionally, the rate has more than doubled since 2009, when the rate was $105 per vehicle. 

RELATED: Report: Michigan still has highest car insurance rates in US in 2019

"I think we all have questions about how on Earth they arrived at that balance," Whitmer said. "We need real transparency and accountability.

The MCCA said the increase is necessary because of a volatile investment market that resulted in less-than-expected growth.


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