Michigan auto insurance fee for catastrophic injuries dropping from $186 to $150 a year

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LIVONIA, Michigan — The annual auto insurance fee that Michigan drivers pay toward caring for people catastrophically injured in crashes is dropping from $186 to $150.

The Michigan Catastrophic Claims Association announced Wednesday the new per-car assessment for the 12 months starting July 1.

The Livonia-based group collects funds to reimburse auto insurers for personal injury protection claims that exceed $545,000 per claim. It paid out $1 billion in 2014, mostly for brain and spinal cord injuries, multiple fractures, and back and neck injuries.

Of the $150 being assessed, $145.10 will cover anticipated new claims and $4.50 will address a $292 million estimated deficit for existing claims. Another $0.40 will go to administrative expenses.

Michigan is the only state that requires all drivers to buy unlimited medical benefits.

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