Below is the recent update from the team at the MBIPC on the Auto No-Fault:
MIRS BREAKING NEWS: MCCA Slashes Vehicle Assessment 55% Following No-Fault Reform — 12:37 PM
The Michigan Catastrophic Claims Association today lowered to $100 the per vehicle assessment for the period of July 2, 2020 through June 30, 2021. The new fee is a reduction of 55%.
“The 55% reduction results directly from savings created by the cost controls for medical treatment and other changes made to Michigan’s no-fault insurance law on June 11, 2019. These changes are estimated to erase the MCCA’s deficit of approximately $2 billion and reduce the annual MCCA assessment by approximately $1 billion,” reads the MCCA statement.
Under the new no-fault law, insurance companies will charge the $100 per vehicle assessment only to drivers who choose to maintain unlimited lifetime personal injury protection (PIP) benefits.
Those who choose lower limits under Michigan’s revised no-fault insurance law avoid the assessment altogether, as long as the MCCA is not in a deficit position.
Kevin A. McKinney