LANSING, Mich. (AP/State of Michigan) - Michigan drivers who want unlimited lifetime coverage for crash injuries will pay $100 per vehicle starting in July--a reduction from record $220 they are assessed now.
The Michigan Catastrophic Claims Association announced the 55 percent fee cut Wednesday, months after the passage of a new law making the mandatory benefit optional beginning next summer.
The state-created entity that reimburses insurers for claims surpassing $580,000 says those who buy less personal injury protection coverage will avoid the $100 fee altogether, unless the association is in a deficit position.
Michigan has the highest average car insurance premiums in the country.
Governor Gretchen Whitmer released the following statement in response to the Michigan Catastrophic Claims Association lowering their per vehicle assessment.
"Today's reduction by the MCCA demonstrates that our historic bipartisan legislation will provide real savings to Michigan drivers," said Gov. Whitmer. "The new law will enhance consumer protections and continue to lower costs for Michiganders by mandating rate reductions for eight years. Millions of Michigan drivers will finally see relief under a new system that maintains the highest benefits in the country."
State Representative Greg Markkanen (R-Hancock) said, “Michigan drivers have been paying out-of-control rates for their car insurance for far too long. This is the first clear indicator that relief is on the way because of the reforms signed into law earlier this year. The great news is that this is just the first of many reductions drivers can expect to take effect as these reforms progress.”