Auto insurance fee for catastrophic injuries rising to $160

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LIVONIA, Mich. (AP) – The annual auto insurance fee that Michigan drivers pay toward caring for people catastrophically injured in crashes is rising to $160, a $10 increase.

The Michigan Catastrophic Claims Association announced Tuesday 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 $1.1 billion in 2015, mostly for brain and spinal cord injuries, multiple fractures, and back and neck injuries.

Of the $150 being assessed, about $140 will cover anticipated new claims and $19 will address a $1.3 billion estimated deficit for existing claims. Another $0.40 will go to administrative expenses.

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

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