Michigan drivers will soon be seeing a $36 fee drop on their auto insurance policies. The decreased rate is due to an announcement made this past Tuesday, March 25th by the Michigan Catastrophic Claims Association (MCCA). The MCCA is a private, nonprofit association made up of a board of five people comprised from the insurance industry.
The MCCA announced that it is reducing its annual per-vehicle assessment rate from $186 per vehicle to $150 per vehicle for the new 2015-16 fiscal year. The assessment is used to cover the costs of treatment for those seriously injured in a motor vehicle accident, funds that the MCCA manages when a No-Fault insurance claim exceeds $530,000.00 (soon to be $545,000.00 on July 1st, therefore reducing the MCCA’s liability).
Drivers will see the reduced rate starting July 1 and running through June 30, 2016.
MCCAA Executive Director Gloria Feeland says, “Motorists are getting a reduction because the fund’s stock market investments have been more profitable than expected and because more than $29 of the current assessment has helped reduce a predicted deficit.” In fact, the MCAA was able to reduce deficit by $1.5 billion between 2013-14 fiscal years.
Not only is this the first MCCA assessment reduction Michigan drivers have seen since 2008-09, but this assessment will be the lowest since 2011-12 when it was $145 per vehicle.
To learn more about the auto insurance fee drop, check out the MCCAA Press Release here.
Michigan is a no-fault state which means every driver in the State of Michigan is required to have an automobile insurance policy with no-fault insurance benefits. No-fault insurance benefits are economic losses the automobile insurance companies are required to pay to an auto accident victim, regardless of who was at fault for the accident. There are several different types of benefits. To see a breakdown of the different types of no-fault benefits a Michigan car accident victim may be entitled to visit our Michigan No-Fault insurance benefits page.
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