Legislature’s plan results in 55 percent savings for Michigan drivers

State Rep. Aaron Miller today said a fee reduction announced by the Michigan Catastrophic Claims Association (MCCA) proves local drivers will indeed save money because of the Legislature’s recent car insurance reforms.

The MCCA announced Wednesday 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 Miller’s vote of support.

“I believed in these reforms and it’s great to see they are now benefitting Michigan families,” said Miller, of Sturgis, who voted in support of landmark auto insurance reforms in May. “Since I took office, and well before that, sky-high car insurance rates are one of issues I hear about most from local residents. This is a decades-old problem and I’m pleased to be taking a step in the right direction.”

According to the MCCA, the $100 per vehicle assessment – Michigan’s 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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