MCCA rate reduction first sign of savings from new law

State Rep. Ann Bollin today said a fee reduction announced by the Michigan Catastrophic Claims Association is a positive indication that drivers in Livingston County 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 supported by Bollin.

“This is the first tangible sign of the savings made possible by our car insurance reforms,” said Bollin, of Brighton Township. “The MCCA’s announcement is a huge step in the right direction – and we don’t expect the financial benefits for Michigan drivers to end here. The new law will continue to provide relief for years to come by offering drivers more choices, combating fraud and ending price gouging on medical services for crash survivors.”

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 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.

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