LANSING — State Rep. Mike Mueller recently explained a fee reduction announced by the Michigan Catastrophic Claims Association (MCCA) is a sign local drivers will save money through the state’s recent car insurance reforms.
The MCCA announced it will charge a $100 per-vehicle assessment for the year-long period beginning July 2, 2020. That is down from the current $220 per vehicle – a 55 percent savings and a direct result of reforms signed into law this year with Mueller’s vote of support.
“This is a sign of the savings made possible by our car insurance reforms,” said Mueller, of Linden, who voted in support of landmark auto insurance reforms in May. “Exorbitant auto insurance costs are some of the biggest struggles Michigan families face. This rate reduction lowers costs for all drivers while maintaining the option for unlimited catastrophic coverage for those who want it.”
According to the MCCA, the $100 per vehicle assessment – Michigan’s lowest rate since 2003 — will be charged only to drivers choosing to maintain unlimited lifetime personal injury protection benefits in their car insurance policies. Those who choose lower coverage limits under Michigan’s revised no-fault insurance law will avoid the fee altogether.
The current $220 fee is assessed on all insured vehicles. — P.S.