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Michigan drivers to pay more for auto insurance

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Michigan drivers already pay more for auto insurance than residents of any other state, and come July every Michigander will be required to pay an additional $22 per insured vehicle annually.

The rate increase comes from the Michigan Catastrophic Claims Association, or the MCCA, which is the group responsible for reimbursing insurance companies who pay out more than $555,000 in medical benefits per claim. It’s called the unlimited lifetime medical benefits fund.

Lori Conarton is the communications director for the Insurance Alliance of Michigan. She said the MCCA sets the annual assessment based off how many people they predict will be injured next year, plus some to cover a $2.3-billion deficit  from existing claims.

“So, if unlimited lifetime benefits went away the people who are currently receiving those benefits would continue to receive that because they have a contract with their insurance company to provide those benefits. However, drivers would see this assessment go down. It would basically be a smaller assessment only to recoup the deficit".

MCCA officials said the increase from $170 to $192 per vehicle per year represents $161 dollars to cover anticipated new claims and $31 dollars to address the deficit.