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Lower catastrophic injury fees on the way for Michigan drivers

Mar 25, 2015

Michigan drivers will soon see lower catastrophic injury fees.
Credit Ray Dumas / Creative Commons

The Michigan Catastrophic Claims Association says it will lower the fee that gets tacked onto all drivers' insurance policies. 

Starting this July, the fee will drop from $186 to $150 per car annually. The announcement comes after some lawyers complained earlier this month that the fee was too high.

State law requires all Michigan auto insurance companies to cover the costs of catastrophic injuries. 

The bulk of each fee goes toward covering claims yet to be filed, while a smaller portion helps to pay down nearly $3 million in existing claims.

Last year, the MCCA paid $1 billion in claims costs related to catastrophic injuries.

Michigan is the only state that requires insurers to pay for unlimited medical benefits.