State Rep. Greg Markkanen today said a fee reduction announced by the Michigan Catastrophic Claims Association is a positive indication that drivers across the Upper Peninsula 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 Markkanen.

“Michigan drivers have been paying out-of-control rates for their car insurance for far too long. This is the first clear indicator that relief is on the way because of the reforms signed into law earlier this year,” said Markkanen, of Hancock. “The great news is that this is just the first of many reductions drivers can expect to take effect as these reforms progress.”

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.

###