Michigan car fee for unlimited medical coverage will drop
David Eggert | Hagadone News Network | UPDATED 5 years AGO
LANSING, Mich. (AP) — Michigan drivers who want unlimited personal injury protection benefits will pay $86 a vehicle starting next summer, down from $100 currently.
The fee was mandatory for decades but became optional beginning in July under a change in state law. The Michigan Catastrophic Claims Association, a state-created nonprofit entity that reimburses auto insurers for medical claims surpassing $580,000, announced the 14% fee reduction Wednesday.
It said the cut to the fee, which was $220 per vehicle between mid-2019 and mid-2020, is primarily due to health care cost controls and other changes in the 2019 law enacted by Democratic Gov. Gretchen Whitmer and the Republican-led Legislature. The changes reduced the association's liabilities by $3.5 billion and eliminated a deficit position.
Motorists who forego personal protection benefits entirely and those who choose less coverage avoid the assessment.
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