In response to the Michigan Catastrophic Claims Association revealing dramatically lowered assessments this week, state Rep. Mark Huizenga said a bipartisan effort to save Michigan drivers more of their hard-earned money is bearing fruit.
The MCCA will lower the amount charged per insured vehicle to $100 for a year-long period beginning July 2, 2020 through June 30, 2021. This will be a 55% reduction from the current $220 mark and is the lowest assessment since 2003.
Sweeping reforms to the state’s no-fault system were signed into law earlier this year and had Huizenga’s support as they advanced through the Michigan House.
“Car insurance has been a big cost for drivers and families across the state,” said Huizenga, of Walker. “Rates are among the highest in the country here in Michigan and it has led to tough financial decisions and forcing people to break the law and drive uninsured. We wanted to provide real rate relief with the plan we put together and we’re now seeing it have a real impact.”
Insurance companies will charge the MCCA assessment only to drivers who opt to maintain unlimited lifetime personal injury protection (PIP) benefits. Those who choose lower coverage limits, as now permitted under the revised no-fault insurance law, will avoid the fee altogether.