Michigan Auto Insurance Finally Going Down

[TexasTowelie]

Michigan drivers will see their catastrophic claims fee slashed or eliminated next year, the first sign that auto-insurance reform adopted by the legislature this spring may actually lead to lower rates.

The Detroit News reports:

Drivers who choose unlimited, lifetime medical benefits will pay $100, down 55% from $220, and drivers who choose other tiers of coverage will pay no fee, according to the Michigan Catastrophic Claims Association. The fee schedule is applicable from July 2, 2020, through June 30, 2021.

The fee reflected in all Michigan premiums pays for catastrophic car crash injuries and is overseen by the Michigan Catastrophic Claims Association, a group created by the Legislature in 1978. The association reimburses auto insurance companies after a certain threshold — set at $580,000 this year — is reached for medical costs.

Not everyone is happy about this:

The Coalition Protecting Auto No-Fault dismissed the decreases from the association, noting they were countered by increased premiums among Michigan auto insurance companies "so they can keep their profits high when they are forced to offer savings on personal injury protection insurance next summer."

CPAN exists to protect Michigan's extraordinarily generous benefits for those injured in auto accidents -- lifetime, unlimited medical coverage, which also led to our rates being highest in the nation. Under the new law, starting July 1, drivers can opt for lower levels of protection and cut the MCCA assessment from their bill.

http://www.deadlinedetroit.com/articles/23706/michigan_auto_insurance_finally_going_down

[catbyte]

1. It's about time. Seriously, car insurance here is ridiculously high--the highest in the US.

It's been an issue for years. I can't believe they're finally going to do something about them.

[llmart]

2. I agree.

I've lived in three other states and when I moved here, outsiders had already warned me about the high cost of car insurance. Every year I am gobsmacked by my annual premium. I drive on average 7,000 miles a year, mostly local, since I retired. My rates should not be as high as they are.