LANSING (WXYZ) — Under the state's new auto insurance reform law, which was signed into law in 2019 and initially went into effect on July 2, 2020, more savings will soon be on the way for Michigan drivers.
The Michigan Catastrophic Claims Association (MCCA) announced Wednesday a further reduction in its annual assessment charged on auto insurance policies. This will lead to 14% more savings per vehicle. This reduced assessment will result in a savings of $86 per vehicle and will take effect on July 1, 2021.
“It is clear that the new auto insurance law is putting more money in the pockets of Michiganders. The reduction in the MCCA annual assessment is another example of how the reform is helping to reduce costs and provide savings for Michigan families,” said Gov. Gretchen Whitmer. “In these difficult times, it is more important than ever that Michiganders see rate relief. I’m pleased that these reforms are continuing to result in greater savings than required in the law.”
When the law first went into effect, the assessment was reduced from $220 per vehicle to $100 per vehicle.
“Drivers are continuing to benefit from the new choices and new protections from Michigan’s new auto insurance law,” said Lt. Gov. Garlin Gilchrist II. “Today’s announcement is one more reminder that there has never been a better time to get car insurance in Michigan, as drivers can choose the coverage that’s right for them and see real savings.”