LANSING – Car-paid drivers pay double-digit coverage to meet catastrophic medical claims under the state's no-fault insurance plan, announced Association on Thursday.
The vehicle-to-vehicle rating will increase to $ 192 on July 1, from the current $ 170 to the Michigan Catastrophic Claims Association. This is an increase of 13%, to an increase of 6.3%. in 2017 follows.
It's the latest in a series of additional c There are motorists paying 20% more for their vehicle registrations and 7.3 cents a gallon more for state gas taxes as part of 2015 road finance.
The association, whose board is dominated by insurance companies, said the rise was necessary due to higher than expected claims costs, partially offset by better than expected investment returns
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Michigan's system is unique in that it provides benefits for catastrophic claims for unlimited, lifetime medical auto insurance. The fee covers services that exceed $ 550,000 per incident, the MCCA said.
Looking at the new $ 192 fee, $ 161 will be used to cover the expected new receivables and expenses, and $ 31 will be used to address an estimated $ 2.3 billion deficit
The Michigan Legislature has Several proposals were considered to curb Michigan's car insurance costs, but legislators were unable to agree on a plan.
The coalition protecting Auto No-Fault conducted a long legal fight against the MCCA over access to the methods and calculations that the MCCA uses to assess its annual fee.
But Michigan claims have ruled the Association, though a public body, Michigan Freedom of Information Act, is not subject.
"Nobody knows how you appreciate this deficit and the way they manage their finances because they do not provide the public with the guessing data," said Josh Hovey, a coalition spokesman.
"That just screams for transparency" and "we need" The Legislative Rule, "said Hovey.
The MCCA states that it publishes adequate information about the process of setting interest rates.
The Association says he has a fortune of $ 20.7 billion, but liabilities of $ 23 billion.
Contact Paul Egan: 517-372-8660 or [email protected] Follow him on Twitter @ paulegan4.
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