Car insurance fee for catastrophic injuries rising to $170

The annual auto insurance fee Michigan drivers pay toward caring for people catastrophically injured in crashes is rising to $170, a $10 increase.

The Michigan Catastrophic Claims Association says the new 12-month, per-car assessment will start July 1. It increased by the same amount last year.

The group collects funds to reimburse insurers for personal injury protection claims exceeding $555,000 per claim. 

It paid $1.1 billion in 2016, mostly for brain and spinal cord injuries, multiple fractures, and back and neck injuries.

The association says about $140 of the total will cover anticipated new claims and $26 will address a $1.9 billion estimated deficit for existing claims. 

Another 40 cents goes toward administrative expenses.