No fault insurance fee hike to $170 coming this summer

It will soon cost even more to have your car insured in the state of Michigan.

GRAND RAPIDS, MICH. - It will soon cost even more to have your car insured in the state of Michigan: a $10 increase is coming this summer.

It’s based on Michigan's no fault law, which was created to take care of drivers who have catastrophic injuries.

Tom Sinas believes this type of system works best -- he's an attorney for the Coalition Protecting Auto No-Fault.

"These are people who've had spinal injuries, brain injuries, people who need extensive car for the rest of their life," he said.

Sinas also thinks the system could be better; specifically, when it comes to the Michigan Catastrophic Claims Association.

When there is a catastrophic injury, auto insurance pays up to $550,000. The MCCA covers the rest, which leads to that assessment we pay on each vehicle.

Sinas says his group would like to know how they are getting their numbers.

"It's not the insurance industry's money," Sinas said. "It's our money, and we have a right to know how the MCCA is making its decision that it needs to increase rates."

CPAN is in the middle of a legal battle over the issue.

The MCCA says it paid out $1.1 billion in 2016 and next year, expects to pay more. For drivers, that means $170 per vehicle. The new assessment will go into effect July 1.

The rates have varied over the years. Going back to the year 2000, the assessment was only $5.60. It rose each year, peaking in 2013 $186 dollars.

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