State Rep. Jason Wentworth, chair of the House Select Committee on Reducing Car Insurance Rates, today issued the following statement criticizing the Michigan Catastrophic Claims Association for raising the per-insured-vehicle assessment to $220 for the 2019-2020 period (from the current $192):

“This is aggravating news for the more than 7 million Michigan drivers already paying the nation’s highest car insurance premiums. The Michigan Catastrophic Claims Association’s (MCCA) decision to increase the annual assessment is yet another example of how the state’s no-fault car insurance system is continually costing more money. Michigan drivers and their families’ budgets will continue to bear the burden of Michigan’s out-of-control system.

“Just look at how absurd these numbers are. The very first per-insured-vehicle assessment issued by the MCCA in 1978 was $3. Over the next 30 years, it reached $104.58 in 2008. Within the last decade it’s risen to $220 – an increase of 110 percent. This is becoming an exponential financial burden for Michigan motorists, and is symptomatic of the underlying problems with the no-fault system. Special interests continue to profit off the status quo while hard-working families and seniors on fixed incomes continue to be sapped.

“This is the very reason why we created the House Select Committee on Reducing Car Insurance Rates. Skyrocketing costs have made car insurance unaffordable in 97 percent of Michigan’s ZIP codes. Over 20 percent of Michigan motorists are illegally operating uninsured, and this MCCA fee increase makes matters worse. This on top of the governor’s lazy 45-cent gas tax proposal is going to drive residents out of the state and hurt Michigan’s economy.

“I will continue to lead the car insurance reform deliberation process and work with colleagues in the Senate in crafting a meaningful solution to make the privilege of driving in this state more affordable.”