Michigan car insurance rates increasing in July -- Here's how much more you'll pay

You'll be paying more to insure your vehicle in Michigan beginning next month.

Last year, drivers received refund checks from no-fault auto insurance reform and a $5 billion surplus in the Michigan Catastrophic Claims Fund. 

However, the reform ended up costing so many families critical care and funding due to insurance companies cutting off payments. As a result, an appeals court ordered them to continue paying, costing the Michigan Catastrophic Claims Association (MCCA) billions of dollars, while stock market losses accounted for more losses.

READ: Cuts to auto insurance law can't be applied to past car crash victims, appeals court rules

Now, the MCCA is adjusting rates to make up for it. New rates go into effect July 1.

If you have unlimited personal injury protection coverage (PIP), you will pay $122, up from $86.

Drivers without unlimited PIP coverage will pay a $48 fee.

Though drivers may not be happy with the no-fault insurance changes, the Insurance Alliance of Michigan says the auto reform gives drivers more options.

"Michigan drivers continue to choose the coverage that best fits their lives and their budgets. The reforms provide for a reasonable medical fee schedule, they reign in rampant overcharging, and they help to prevent fraud," said Erin McDonough, with the Alliance. "In order for people who have chosen other than unlimited to truly get the value of those policies, these reforms need to be preserved."