Mich. State Rep. Berman: Signed Car Insurance Reforms Kicking Into Gear With MCCA Rate Reduction

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

State Rep. Ryan Berman, of Commerce Township, today welcomed the announcement of additional savings for drivers throughout the state after the Michigan Catastrophic Claims Association (MCCA) revealed new assessment amounts that dramatically slash costs.

The MCCA will lower the amount charged per vehicle to $100 for a year-long period beginning July 2, 2020 through June 30, 2021. This will be a 55% reduction from the current $220 per vehicle assessment.

Berman serves on the House Insurance Committee and supported sweeping reforms to the state's no-fault system that were signed into law earlier this year.

"Cost containment and choice are allowing people to save money," Berman said. "Those were two vital components of our plan when we were looking at how to alleviate the highest car insurance premiums of any state in the country. This announcement provides sizeable savings for Michigan's drivers and I'm proud to have supported a proposal that pursued that goal."

In addition to the planned reduction, insurance companies will only charge an assessment to people who elect to maintain unlimited lifetime personal injury protection (PIP) benefits. Those who choose lower coverage limits, as will be permitted under the revised no-fault insurance law, will avoid the fee altogether.