State News

Michigan auto insurance finally going down

November 14, 2019, 6:38 AM

Michigan drivers will see their catastrophic claims fee slashed or eliminated next year, the first sign that auto-insurance reform adopted by the legislature this spring may actually lead to lower rates. 


The Detroit News reports: 

Drivers who choose unlimited, lifetime medical benefits will pay $100, down 55% from $220, and drivers who choose other tiers of coverage will pay no fee, according to the Michigan Catastrophic Claims Association. The fee schedule is applicable from July 2, 2020, through June 30, 2021.

The fee reflected in all Michigan premiums pays for catastrophic car crash injuries and is overseen by the Michigan Catastrophic Claims Association, a group created by the Legislature in 1978. The association reimburses auto insurance companies after a certain threshold — set at $580,000 this year — is reached for medical costs.

Not everyone is happy about this:

The Coalition Protecting Auto No-Fault dismissed the decreases from the association, noting they were countered by increased premiums among Michigan auto insurance companies "so they can keep their profits high when they are forced to offer savings on personal injury protection insurance next summer."

CPAN exists to protect Michigan's extraordinarily generous benefits for those injured in auto accidents -- lifetime, unlimited medical coverage, which also led to our rates being highest in the nation. Under the new law, starting July 1, drivers can opt for lower levels of protection and cut the MCCA assessment from their bill. 

Read more:  The Detroit News

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Potd_img_5029_594 Dante Alighieri, the father of Italian literature. A bust created by sculptur Raffaello Romanelli. Erected by the Italian Community of Detroit, 1927 on Belle Isle.

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