A rate reduction announced by the Michigan Catastrophic Claims Association will allow drivers to save money on their car insurance while providing choice to maintain top-notch health coverage, Rep. Phil Green said today.

The Michigan Catastrophic Claims Association announced it will charge a $100 per vehicle assessment for the year-long period beginning July 2, 2020 – a 55-percent reduction. The MCCA said the $100 per vehicle assessment — the lowest rate since 2003 — will be charged only to drivers choosing to maintain unlimited lifetime personal injury protection benefits. Drivers who choose lower coverage limits under Michigan’s revised no-fault insurance law won’t have to pay the fee at all.

The current $220 fee is assessed on all insured vehicles.

“Choices in coverage were an essential part of the discussions around changes in Michigan’s auto insurance laws approved by the Michigan Legislature earlier this year,” said Green, of Millington. “It was important to me that the changes to state law would save people money while continuing the option to have the best auto-related health coverage in the nation. I applaud this rate reduction from the MCCA. While there is still work to do to bring insurance policy rates to a competitive level with other states, this is a good start.”

#####