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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