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Rep. Kahle: MCCA rate reduction proves the power of Legislature’s reforms to lower car insurance costs
RELEASE|November 13, 2019
Contact: Bronna Kahle

Rep. Bronna Kahle today said Lenawee County drivers will soon see the financial benefits of car insurance reforms the Michigan Legislature approved earlier this year.

The Michigan Catastrophic Claims Association 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 Kahle and her colleagues in the Legislature.

“The high cost of car insurance has been a top concern of our families, friends and neighbors for decades – and this announcement about MCCA rates proves our efforts to fix a broken system are working,” said Kahle, of Adrian. “All drivers – including those who choose to continue buying unlimited personal injury protection through their car insurance policies – will save money. Rate relief is on the way.”

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.

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