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Sun Mar 31, 2019, 03:37 AM

Fund hikes Michigan auto insurance fee by double digits, Whitmer orders audit

LANSING Gov. Gretchen Whitmer requested an audit of the Michigan Catastrophic Claims Association Fund on Wednesday, after it announced its latest annual increase one of 14.6 percent in a fee tacked onto what are already the nation's highest auto insurance premiums.

The MCCA, which is controlled by insurance companies, announced a fee increase of $28, effective July 1, to cover unlimited benefits for injured drivers under Michigan's no-fault auto insurance system.

The fee, which covers medical claims that exceed $580,000, is set annually and added to drivers' insurance premiums. The latest increase brings the total fee to $220 per vehicle.

The fee has been controversial because state courts have ruled that although the MCCA was created by an act of the Legislature, it is not subject to the Michigan Freedom of Information Act. Critics complain it is not transparent in how it calculates the fee. Though the catastrophic fund contains more than $20 billion, the MCCA says it needs higher fees to cover a $3.9-billion deficit related to existing and pending claims.

Read more: https://www.freep.com/story/news/local/michigan/2019/03/27/auto-insurance-michigan-catastrophic-claims-fund/3292060002/

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