Are you a Michigander? If so, be prepared to pay a bit more on your no-fault insurance coverage.
 
One week ago today the Michigan Catastrophic Claims Association stated that there will be an increase for the premium paid for catastrophic coverage by 21 percent to $175 per insured vehicle from July 1, 2012 to June 30, 2013.

The purpose of this non-profit association founded in 1978 is to reimburse auto insurers for personal injury protection (PIP) benefits after exceeding $500,000 per claim. The MCCA evaluates auto insurance companies a premium in order to cover lifetime claims in catastrophic injury cases. These premiums are paid for by policy holders, (No-fault auto insurance rates to rise again so Michigan can cover catastrophic accident claims, Melissa Anders, mlive.com,

http://www.mlive.com/business/index.ssf/2012/03/michigan_no-fault_rate_increas.html).

The MCCA increase is a political move so believes the Coalition Protection Auto No-Fault. They believe the MCCA is looking to put pressure on lawmakers in an effort to change the current no-fault system in Michigan. The CPAN explains that the medical costs acquired by injured parties would still need to be covered, and therefore would wind up to taxpayers via government programs like Medicare and Medicaid.

The Executive Director of MCCA Gloria Freeland stated on CPAN's comment that the increase is due to the rising costs as premiums are reviewed every year and have fluctuated due to existing as well as expected liabilities. Freeland also points out the numbers, last year the MCCA paid $927 million in catastrophic injury claims, and more than 28,000 claims were filed since 1979 totaling up to $85 billion. The reason for the high cost is that most claims are for those with brain or spinal cord related injuries which have resulted in permanent damages/disabilities, (No-fault auto insurance rates to rise again so Michigan can cover catastrophic accident claims, Melissa Anders, mlive.com).