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Rep. LaFave: MCCA rate reduction ‘conclusive proof’ of savings for every Michigan driver
RELEASE|November 13, 2019

Lawmaker: Fees to drop even further

State Rep. Beau LaFave, of Iron Mountain, today said the fee reduction announced by the Michigan Catastrophic Claims Association is proof Michigan drivers will save significant 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 signed into law this year with LaFave’s vote of support.

“We now have conclusive proof of savings for every Michigan driver as a result of the recent no-fault reforms we approved earlier this year,” said LaFave, who served on the House Select Committee on Reducing Car Insurance Rates. “This fee reduction establishes the floor as to the minimum drivers will save and it’s $120. Drivers will save $120 per vehicle per year with no changes in coverage.”

The MCCA said the $100 per vehicle assessment — the lowest rate since 2003 — will be charged to drivers choosing to maintain unlimited lifetime personal injury protection benefits in their car insurance policies. LaFave said those who choose alternative coverage limits under Michigan’s revised no-fault insurance law will see even greater savings.

“This will not be the last time we hear of savings on car insurance throughout Michigan,” LaFave said. “Because of the reforms we approved, drivers can expect even more good news between now and the time the new law goes into effect in July.”

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

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