Mich. State Rep. Allor: Rate Reduction Shows Michigan’s Car Insurance Reforms Are Working

LANSING, Michigan, Nov. 14 -- The Michigan House Republicans issued the following news release on behalf of State Rep. Sue Allor:

State Rep. Sue Allor today said a fee reduction announced by the Michigan Catastrophic Claims Association is a positive indication that drivers in Northern Michigan will save money through the state's recent car insurance reforms.

The MCCA announced it will charge a $100 per vehicle assessment for the year-long period beginning July 2, 2020. That is down from the current $220 per vehicle - a 55 percent savings and a direct result of reforms supported by Allor.

"This is just the first sign of the relief our new car insurance law will bring to Michigan drivers," said Allor, of Wolverine. "The reforms we made are working exactly as we expected - saving Michigan families money while maintaining top-tier medical coverage for anyone who chooses it."

The MCCA said the $100 per vehicle assessment - the lowest rate since 2003 - will be charged only to drivers choosing to maintain unlimited lifetime personal injury protection benefits in their car insurance policies. Those who choose lower coverage limits under Michigan's revised no-fault insurance law will avoid the fee altogether.

The current $220 fee is assessed on all insured vehicles.