Sen. Theis comments on new MCCA assessment reduction

LANSING, Mich. — State Sen. Lana Theis, R-Brighton, released the following statement after the Michigan Catastrophic Claims Association (MCCA) announced Wednesday it will reduce the auto no-fault assessment charged to policyholders with unlimited personal injury protection (PIP).


“Today Michiganders learned that the MCCA has again reduced its per-car assessment by an additional 14%, down to $86 per car for those who choose to keep unlimited auto no-fault coverage.


“From 1999 until 2018, the fee snowballed from under $6 to $220 per car, as health care providers and courts required payments that far exceeded normal medical costs. Since passing historic auto no-fault reforms, however, the fee has been reduced by 61% in only two years. With over six million vehicles registered in Michigan, that reflects a minimum combined savings of over $800 million per year on this fee alone.


“While that rate reduction is welcome and overdue, the savings motorists could attain by choosing one of the new tiered options could dwarf the savings from the reduced assessment on the unlimited PIP coverage option, because the new PIP medical coverage levels are not charged the assessment fee. If you have qualifying health insurance coverage, such as with Medicare, you may want to consider opting out of the medical PIP portion altogether and save even more of your hard-earned money.


“I strongly encourage everyone who has not reviewed their auto insurance policy since July 1 to call an agent, discuss your options, and see how much money you can save. If you don’t like what you hear, be sure to shop around and check with other insurance carriers to find the best savings for your family.”


For more information about Michigan’s new auto no-fault laws, visit Michigan.gov/AutoInsurance.


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