MICHIGAN – The Michigan Catastrophic Claims Association’s announcement that the per-vehicle fee will increase by $28 for Michigan is causing concern in a state with the highest auto insurance premiums in the country.

The increase puts the per-vehicle fee at $220. The vehicle assessment fees go into a fund that covers the cost of medical care for people injured in car accidents when the cost of medical care exceeds $580,000.

“The per-vehicle fee increase underscores the urgent need to reform Michigan’s broken, outdated auto no-fault system, which continues to overburden drivers,” said Tricia Kinley, executive director of the Insurance Alliance of Michigan. “The fact that medical providers can dramatically overcharge for medical procedures when someone is injured in a car accident has caused the cost of medical care to increase exponentially in Michigan, while the MCCA struggles to keep up.”

The per-vehicle fee increase, which is assessed to every car insurance company doing business in Michigan and charged to consumers, will take effect on July 1.