ACC is proposing to hike the average motor vehicle levy for road users by more than 12 per cent.

It is blaming higher costs due to increasing road accidents and will mean fuel and vehicle registrations costs will rise.

The proposed average motor vehicle levy for road users will climb by 12.1 percent from $113.95 to $127.68 a year.

There is also a proposed increase of 1.9 cents per litre for petrol.

ACC board chair Dame Paula Rebstock says since the last levy adjustment in 2016 the number of overall claims for injuries had grown by 6.4 percent.

"Experience tells us that during times of economic growth such as we have experienced over the last few years, people tend to lead more active lives, exposing themselves to greater risk," she said in a statement.

"New Zealand's population is also growing and ageing."

Rising medical costs related to road accidents and their related recovery is one of the most significant cost pressures.

In the last two years, ACC has paid more than 30,400 road accidents - a 9 percent increase from figures released in 2016.

ACC is expecting 110 serious injury cases each year for 2019 and 2020, with an estimated lifetime cost of $164 million each year

ACC also announced it would lower the average work account levy for employers from $0.72 to $0.67 for every $100 of liable earnings.

However, the earners' levy for workers would rise from $1.21 to $1.24 for every $100 of liable earnings.

Public consultation on the proposed levy changes will run until 25 October.