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Michigan to see insurance premium hike in July

The Michigan Catastrophic Claims Association (MCCA) announced that beginning in July 2019, the cost of personal injury protection (PIP) will increase by $22 per insured vehicle. That's an increase of 13 percent per vehicle and will bring the total cost of PIP to $192 per vehicle.

The MCCA is an entity created by the state that reimburses auto insurance companies for claims that exceed $555,000 for personal injury benefits. Michigan is the only state that requires drivers to have unlimited lifetime coverage for costs for medical care needed because of a car wreck. The injuries that usually require the most are spinal cord injuries, back and neck injuries and injuries to the brain.

The state already has the highest car insurance premiums in the country, although there have been attempts in its legislature to lower the cost of premiums for five years by allowing drivers to choose $250,000 or $500,000 in coverage. This would be instead of mandating unlimited PIP coverage.

According to MCCA, the fee increase is because the costs of claims were more expensive than expected. The entity did say that the cost could have been even higher if it wasn't partially offset by investment returns that were better than expected.

The Coalition Protecting Auto No-Fault does not believe that unlimited no-fault coverage should be optional. However, its spokesman said that the rate hike shouldn't have happened when there are fewer crashes, cars are safer and the investments have performed so well.

The increase in PIP premiums will cover insurance policies that are renewed or issued between July 2018 and June 2019.

Have you been injured in a car accident or have you lost a loved one to another driver's negligence, recklessness or carelessness? An attorney can help you understand what compensation is available to you and how to go after it.

Source: Insurance Journal, "Michigan Auto Insurance Assessment Rising to $192 per Vehicle in July," David Eggert, April 02, 2018

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