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Transportation & Infrastructure

Michigan auto fee rising to $192 per vehicle in July

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Michigan's mandatory fee to cover unlimited medical benefits for injured drivers is rising to $192 a year.

 
The Michigan Catastrophic Claims Association announced the higher assessment Thursday. It is now $170 annually per insured vehicle, an increase of about 13%. According to MCCA, $161 will be used to cover upcoming claims and expenses in 2018-19 and $31 to address a $2.3 billion deficit. 
 
The organization says the fee hike is due to larger-than-expected claims and rising medical care costs.
 
The fee revenue largely covers lifetime care for people with brain, spinal cord, back and neck injuries.
 
Michigan is the only state to require unlimited lifetime coverage for medical expenses resulting from auto crashes, under the no-fault insurance law. The state Legislature has been at odds over proposals to rein in costs.

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