LANSING, MI – The Michigan Catastrophic Claims Affiliation introduced Wednesday, Nov. 25, one other discount in its annual evaluation charged on sure Michigan auto insurance coverage insurance policies.
The brand new MCCA annual charge, taking impact in July of subsequent yr, is $86 per automobile. This down from the present $100 per automobile. The charge was $220 in 2019 earlier than sweeping modifications to the states auto no-fault insurance policies had been signed into regulation.
Gov. Gretchen Whitmer and the Michigan Division of Insurance coverage and Monetary Providers applauded additional price reductions drivers will see beneath the states new auto insurance coverage reform regulation.
It’s clear that the brand new auto insurance coverage regulation is placing extra money within the pockets of Michiganders. The discount within the MCCA annual evaluation is one other instance of how the reform helps to scale back prices and supply financial savings for Michigan households, Whitmer stated in an announcement.
Below Michigans previous auto insurance coverage regulation, every driver needed to buy limitless private harm safety medical protection and pay the MCCA evaluation, which reimburses insurers for catastrophic medical claims. Below the brand new regulation, Michigan drivers can nonetheless select limitless medical protection however can now additionally select the extent of PIP medical protection they need after they begin or renew a coverage. Solely drivers who select limitless PIP medical protection pay the MCCA evaluation, so long as the fund doesn’t have a deficit.
This discount within the MCCA annual evaluation is a direct results of the brand new regulation, and in our function as a client safety company, it’s our precedence to make sure these financial savings proceed to be handed on to drivers, Division of Insurance coverage and Monetary Providers Director Anita Fox stated in an announcement. Drivers who want to see further financial savings ought to store round and discuss to an insurance coverage agent or firm to be taught concerning the protection choices accessible to them.
The brand new auto insurance coverage regulation additionally prohibits insurance coverage corporations from utilizing sure non-driving elements when establishing premiums, gives stronger anti-fraud protections, and will increase fines and penalties on insurance coverage corporations, businesses, and licensed brokers.
Speaker-elect Jason Wentworth, R-Farwell, stated the most recent fee discount is additional proof the states automobile insurance coverage reform is profitable.
Michigan drivers now pay the bottom annual MCCA evaluation since 2003, Wentworth stated, noting many youngsters getting licenses right now werent even born the final time the MCCA charge was this low.
Particularly in these unsure occasions, its extra vital than ever that Michigan drivers hold as a lot of their hard-earned revenue as attainable, stated Wentworth, who chairs the Home Choose Committee on Decreasing Automotive Insurance coverage Charges. The reforms adopted by the Legislature proceed to economize for Michigan drivers and their households and the modifications could have long-lasting advantages for years to return.
The Division of Insurance coverage and Monetary Providers provides month-to-month digital city halls to reply drivers questions concerning the new auto insurance coverage regulation. The division additionally operates a no-fault hotline with calls being answered eight a.m. to five p.m. Monday via Friday. Drivers can name 833-ASK-DIFS (275-3437), e mail firstname.lastname@example.org or go to www.michigan.gov/autoinsurance for extra data.
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