The Latest: Whitmer orders audit after MCCA increases fee
LANSING, Mich. (AP) — The Latest on an increase in a fee that Michigan drivers pay annually (all times local):
Michigan Gov. Gretchen Whitmer is ordering an audit after news that an annual fee included in auto insurance premiums is rising by $28, bringing the total to $220 per vehicle.
The Democrat said Wednesday that Michiganders “deserve to know why they are being forced to shell out hundreds of dollars in additional fees for car insurance.” Her announcement came after the Michigan Catastrophic Claims Association, which reimburses insurers for claim costs exceeding a certain amount, announced the assessment will rise to $220 starting in July, a nearly 15 percent increase.
Whitmer says the last time the association’s operations were thoroughly reviewed was 2015.
The Legislature, where majority Republicans says reducing high auto premiums is a priority, is considering ways to rein in costs.
Michigan is the only state to require unlimited lifetime coverage for medical expenses resulting from auto crashes.
Michigan’s mandatory fee to cover unlimited medical benefits for injured drivers is rising to $220 a year — a record high — and more than double what is was a decade ago.
The Michigan Catastrophic Claims Association announced the higher assessment Wednesday. It is now $192 annually per insured vehicle.
The organization says the fee hike is due to a higher number of claims, rising medical care costs and lower-than-expected investment earnings.
The fee revenue largely covers 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. The Legislature has been at odds over proposals to rein in costs.