A rate reduction announced today by the Michigan Catastrophic Claims Association shows recently approved fixes to the state’s broken car insurance system are working, Rep. Joe Bellino said.
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 Bellino 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 in their car insurance policies. Drivers 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.
“We’re basically getting rid of an unfair tax on drivers and restoring sanity to Michigan’s car insurance system,” said Bellino, of Monroe. “This is great news for all drivers, but especially those on fixed incomes or fighting to make ends meet. It’s real reform that will save people money for their other priorities.”
State Rep. Joe Bellino, of Monroe, today joined his colleagues in approving a bipartisan plan for the state’s Fiscal Year 2021 K-12 budget – one that won’t raise taxes or grow state government.
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