An increase in the amount Michigan drivers will pay into a fund for accident victims with brain damage, paralysis and other catastrophic injuries is renewing a call by some lawmakers for more transparency in how the rates are determined and broader insurance reforms.
The Michigan Catastrophic Claims Association in March announced that the state’s insured drivers will pay $30 more per vehicle annually into the fund effective July 1, raising the per-vehicle assessment to $175. The 21 percent increase is needed, the association said, to cover the costs of Michigan’s one-of-a-kind law providing uncapped lifetime coverage for medical expenses resulting from auto accidents.
The state’s law could be altered as Michigan legislators consider broader changes to no-fault auto insurance later this year. Bills pending in the Legislature would offer motorists potentially less expensive insurance in exchange for limited personal injury protection coverage.
But some lawmakers want faster and independent action, saying the claims association should be subject to open meeting and freedom of information laws to help shed light on how rates are determined.
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