LANSING (WWJ/AP) - 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% fee cut Wednesday, months after the passage of a new law making the mandatory benefit optional beginning next summer.
“Today’s announcement by the MCCA that the per-vehicle fee is dramatically decreasing is just the first in what we hope is a series of cost savings for Michigan drivers,” said Tricia Kinley, executive director of the Insurance Alliance of Michigan, in a statement. “By next summer, drivers will finally be able to choose the level of medical coverage (see below) that works best for them, which should further decrease costs. The combination of new choices for consumers and the enactment of a fee schedule to stop medical providers from charging three and four times more for auto accident injuries should allow drivers to see savings on their premium.”
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.
This is part of Michigan’s new auto no-fault law, which took effect June 11, and includes several changes expected to reduce costs for drivers, including a fee schedule to rein in overcharging by medical providers and tiered choices in medical coverage.
Michigan currently has the highest average car insurance premiums in the country.