Michigan: New fees being charged on car insurance

Michigan Car Insurance Fees Being AssessedMichigan drivers will be facing assessment fees to be instituted by the Michigan Catastrophic Claims Association (MCCA) beginning this summer. These fees are meant to help insurance companies cover the cost of disastrous injuries resulting from auto accidents. The MCCA claims that the fee is necessary to offset the huge financial loss facing insurers who provide coverage for victims of accidents whose care exceeds $500,000.

There has been some scrutiny in the past over the MCCA’s actions, much of which has been focused on the organizations lack of accountability and clarity of their aims.

Michigan’s No Fault Law ensures that victims of a calamitous car crash are eligible for lifetime medical care and rehabilitation so long as such care is related to the accident. The law helps provide peace of mind for victims as they will not have to suffer the financial burden of an accident. Some state insurers, along with the MCCA, cite this law as a significant risk to their ability to make money.

Recent rate hikes from insurers, not just in Michigan but nationwide, have put customers on edge. As the economy shows timid recovery, many are decrying higher premiums given the instability of the economic climate. Insurers argue that the rate increases are necessary to keep up with the soaring cost of medical procedures and care. Without raising rates, they say, they will not be able to continue to provide the coverage that many need.

The fees proposed by the MCCA are scheduled to begin in the summer of this year and will affect motorists across the state.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.