In order to combat rising costs of insurance due to auto accidents, legislators in Michigan have approved a new hike in insurance fees. Starting in July of this year, all motorists will see a $30 increase in their insurance policies on a yearly basis. This represents a 21% increase from preceding years. The increase was announced by the Michigan Catastrophic Claim Association earlier this month. This money will be deposited into the state's fund that supplies unlimited lifetime medical support for those in serious auto accidents. Under current state law, certain motorists can qualify for lifetime benefits under the state's no-fault car insurance law.
A total of $175 per motorist will be placed into the state fund. Of this money, $141.93 will go towards covering claims, $32.72 to reduce deficits in the fund and 35 cents go towards administrative fees. Since the cost of medical fees for accident victims has increased steadily since 2002, this recent hike is a necessary adjustment claim state officials. If you were hurt during a car accident and are wondering how you will cover the costs of the damage you incurred, contact Freedman & Freedman today to discuss your legal options with a Michigan personal injury lawyer who can advise you during this challenging time.
