Mich. State Rep. Howell: Car Insurance Reforms Produce Tangible Savings

LANSING, Michigan, Nov. 16 -- The Michigan House Republicans issued the following news release on behalf of State Rep. Gary Howell:

State Rep. Gary Howell, of North Branch, today said the fee reduction recently announced by the Michigan Catastrophic Claims Association is a positive indication Michigan drivers will save a significant amount of 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 for drivers choosing unlimited coverage. That is down from the current $220 per vehicle - a 55-percent decrease that is a direct result of reforms supported by Howell.

"Michigan drivers have been conditioned to expect the worse when the MCCA announces its annual per-vehicle assessment, but this announcement was much different than years past," Howell said. "For the first time in nearly 20 years, families across Michigan have received tremendous news regarding their car insurance policies. I'm thrilled to see the bipartisan work in the Legislature deliver notable savings that every driver across the state will see come July."

The MCCA said the $100 per vehicle assessment -- the lowest rate since 2003 -- will be charged to drivers choosing to maintain unlimited lifetime personal injury protection benefits in their car insurance policies. Howell said those who choose alternative coverage levels under Michigan's revised no-fault insurance law will see even greater savings.

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