Michigan Auto Insurance Will Increase In July

LANSING (AP) – Michigan drivers will pay $30 more for auto insurance starting July 1 to care for accident victims who have brain damage, paralysis or other catastrophic injuries, raising the annual fee to $175 per vehicle.

The Michigan Catastrophic Claims Association announced the 21 percent premium increase Friday.

Lawmakers are discussing bills that would allow motorists to choose among various levels of personal injury protection coverage, rather than mandating uncapped coverage. Opponents say that wouldn’t guarantee lower rates.

Regular auto insurance policies handle coverage up to $500,000, after which all insured motorists are assessed the additional fee to cover more severe cases.

The association covers medical bills for roughly 12,800 accident victims across the state. Last year it paid out $927 million in claims resulting from catastrophic injuries.

© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

  • RickyLFerrari

    I was told by a friend that something called “Penny Health” is offering health insurance plans starting just $1 a day. That is some thing we all can agree.

  • Bob

    The auto insurance industry is in DIRE need of an overhaul. If as a driver in this state I am REQUIRED to purchase insurance in a NO FAULT system, then why am I responsible for premium increases to cover someone else who was either a victim, or a negligent driver? The answer is simple, to protect the BILLIONS of dollars of net profit the insurance companies collect each year. Does it make sense to pay $2,000 a year for a 10 year old car that if totaled out gives a blue book payout of $1,100? If the PAYOUT for an insurance claim does not FULLY cover you, or your payout in premiums exceeds the coverage then it is a moot point AND THE SYSTEM IS BROKEN. Let’s suggest we take 1 million apiece off the top 1000 executives of all insurance giants BONUS checks. But that might be too much like right.

    • LJ

      I agree with you Bob. We are paying higher property taxes, yet our home value has decrease. We are paying close to $4 per gallon for gasoline and yet Michigan is one of the lowest minumin paying wage states. Now we have to pay higher insurance premiums. I love my homestate and we would love to stay, but we are seriously considering packing it all up and relocating to another state. With everything that has been happening here, I don’t think we can survive in Michigan.

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  • Jenn Summers

    As a therapist in the area there is no better coverage if you are injured in an auto accident. I have treated in Michigan as well as in other states that do not have No Fault benefits. The differences in care are dramatic, and I can clearly see better outcomes for those injured in Michigan versus other states. Until you see the benefits of this system first hand it is hard to understand why this is better for Michigan residents. The information provided by lawmakers and insurance companies for reform is inaccurate and a scare tactic for uninformed drivers. I urge readers to look past the hype and really research the facts.

  • johnboy6528

    I agree with you totally Bob , it does not make sense to pay 2000.00 a year for a vehicle that is depreciated 10 times its original value , and if you have a problem with a bad starter or something is wrong with the engine …. is the insurance co. gonna pay for the repair ? NO YOU ARE !!! The money you need to get it fixed ,has either gone to gas or the INSURANCE CO. RIGHT ?

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