After Auto Insurance Law, Michigan Residents Will Save on Mandatory Driver Fee

By The Ann Arbor Independent Editorial Team Last updated Nov 13, 2019 0

by Nick Manes

Beginning next summer, Michigan drivers who continue to drive with unlimited personal injury protection (PIP) will pay a significantly reduced fee following drastic changes to the state’s auto insurance law.

The Michigan Catastrophic Claims Association (MCCA), a Livonia-based nonprofit organization that reimburses insurance companies for costs related to benefits, announced on Wednesday a 55% reduction in the mandatory fee drivers pay. For the period of July 2, 2020, through June 30, 2021, drivers who opt to maintain unlimited benefits will only pay a $100 fee, down from $220 this year.

Drivers who choose lower limits under Michigan’s new auto insurance law will “avoid the assessment altogether, as long as the MCCA is not in a deficit position,” the MCCA said in a statement.

Reported by Michigan Advance. Read more here.