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.

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