Rep. Yaroch: Bipartisan efforts to lower Michigan’s car insurance costs are paying off

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Bipartisan reforms designed to lower the cost of car insurance in Michigan will soon be saving drivers money, state Rep. Jeff Yaroch said today.

The Michigan Catastrophic Claims Association announced it will charge a $100 per vehicle assessment for the year-long period beginning July 2, 2020 – a 55-percent reduction and a direct result of reforms Yaroch supported. 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. Drivers who choose lower coverage limits under Michigan’s revised no-fault insurance law won’t have to pay the fee at all.

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

“I’m pleased to be a part of this bipartisan effort to reform auto insurance and bring rate relief to drivers,” said Yaroch, of Richmond. “Unlike in Washington, Republicans and Democrats in the Michigan Legislature have shown they can work together to identify a problem and help fix it. This is a very clear sign that drivers will be getting real relief from Michigan’s out of control car insurance costs – and I am hopeful this is just a first step.”

Michigan’s car insurance costs are high because of the mandate for unlimited health care coverage within policies – but the state’s revised laws now offer choice. Drivers can keep unlimited coverage if they want it, or choose more affordable coverage levels if it better suits their needs – but all drivers will save money through the reforms.

The bipartisan reforms also rein in medical costs and fight fraud.