Michigan Auto Insurance Rate Drop

With Michigan being the most expensive state in the US to have car insurance, any little bit of discount is going to help residents. Recently, Michigan residents found out that they are going to be getting charged $14.18 less for their annual auto insurance premiums starting July 1st.

The Michigan Catastrophic Claims Association (MCAA) has announced a reduction in their surcharge which is part of what makes up the premium for no-fault auto insurance policies. As Michigan is only one of nine states that have no-fault insurance, residents were happy that it would reduce the amount of money that they are paying for auto insurance now. The MCAA said that their new surcharge would be $123.15 per vehicle – it was $137.33.

This is the second reduction from the MCAA since 2005, when they slightly increased the amount they were charging. They said that they have seen a reduction in injuries as well as higher investment returns from the stock market and therefore wanted to pass the savings on to their car insurance policy holders.

The assessment that is charged per car helps pay for auto insurance medical claims under Michigan’s no-fault insurance law. The MCAA says that they estimate only 1,300 people will need that kind of medical care in the coming year, and only paid $668 million in claims over the past year. Michigan is the only state in the US that does not put a limit on the amount of medical benefits that can be claimed from a car accident.

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