Michigan Auto Insurance: Hit With Rate Increase Again
Thursday, April 1st, 2010According to the article “Michigan Motorists Hit With $18 Insurance Hike” by Chris Christoff on freep.com, Michigan drivers will pay even more for their Michigan auto insurance starting July 1. They will be paying about $143.09 more for each car they insure to pay for medicare costs of others hurt in traffic accidents.
This turns out to be about $18.20 more then they pay now for each car for the Michigan Catastrophic Claim Association (MCCA). They are a Michigan group which covers car accident medical claims that exceed $480,000. This new assessment is the largest they have bad since the MCCA was created back in 1978.
The MCCA, which is made up by insurance companies, increased the fee today to cover an estimated $2 billion deficit caused by the increased costs in health care and less income from their investments. They paid out $811 million in 2009 for major injuries and they predict about 1200 more injured people will qualify for coverage in 2010. Michigan is currently the only state that requires auto insurance companies to cover unlimited medical costs and the MCAA was developed to help pay for some of the exceptionally large claims.
