LANSING, MI – The Michigan Catastrophic Claims Association announced Wednesday, Nov. 25, another reduction in its annual assessment charged on certain Michigan auto insurance policies.

The new MCCA annual fee, taking effect in July of next year, is $86 per vehicle. This down from the current $100 per vehicle. The fee was $220 in 2019 before sweeping changes to the state’s auto no-fault policies were signed into law.

Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services applauded further cost reductions drivers will see under the state’s new auto insurance reform law.

“It is clear that the new auto insurance law is putting more money in the pockets of Michiganders. The reduction in the MCCA annual assessment is another example of how the reform is helping to reduce costs and provide savings for Michigan families,” Whitmer said in a statement.

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Under Michigan’s old auto insurance law, each driver had to purchase unlimited personal injury protection medical coverage and pay the MCCA assessment, which reimburses insurers for catastrophic medical claims. Under the new law, Michigan drivers can still choose unlimited medical coverage but can now also choose the level of PIP medical coverage they want when they start or renew a policy. Only drivers who choose unlimited PIP medical coverage pay the MCCA assessment, as long as the fund does not have a deficit.

“This reduction in the MCCA annual assessment is a direct result of the new law, and in our role as a consumer protection agency, it is our priority to ensure these savings continue to be passed on to drivers,” Department of Insurance and Financial Services Director Anita Fox said in a statement. “Drivers who would like to see additional savings should shop around and talk to an insurance agent or company to learn about the coverage options available to them.”

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The new auto insurance law also prohibits insurance companies from using certain non-driving factors when establishing premiums, provides stronger anti-fraud protections, and increases fines and penalties on insurance companies, agencies, and licensed agents.

Speaker-elect Jason Wentworth, R-Farwell, said the latest rate reduction is further evidence the state’s car insurance reform is successful.

Michigan drivers now pay the lowest annual MCCA assessment since 2003, Wentworth said, noting many teenagers getting licenses today weren’t even born the last time the MCCA fee was this low.

“Especially in these uncertain times, it’s more important than ever that Michigan drivers keep as much of their hard-earned income as possible,” said Wentworth, who chairs the House Select Committee on Reducing Car Insurance Rates. “The reforms adopted by the Legislature continue to save money for Michigan drivers and their families – and the changes will have long-lasting benefits for years to come.”

The Department of Insurance and Financial Services offers monthly virtual town halls to answer drivers’ questions about the new auto insurance law. The department also operates a no-fault hotline with calls being answered 8 a.m. to 5 p.m. Monday through Friday. Drivers can call 833-ASK-DIFS (275-3437), email autoinsurance@michigan.gov or visit www.michigan.gov/autoinsurance for more information.

Read more:

Michiganders to see $120 reduction in auto insurance fee next year

Michigan’s auto insurance law completely changes after July 1. Here’s what to consider when picking your new plan

Will Michigan drivers change their policies once new auto insurance law takes effect? Many still don’t know

Why it’s hard to predict individual savings under new auto insurance law

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