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Michigan to Reduce No-Fault Claims Fee for Auto Insurance

Drivers in Michigan will pay $100 per vehicle for unlimited lifetime coverage for crash injuries starting in July after changes to the no-fault insurance law.  Currently drivers are assessed a $220 fee for the coverage. That’s a 55% reduction.

The Michigan Catastrophic Claims Association announced the decrease Wednesday. It comes several months after a new law was passed, making the mandatory benefit optional starting next summer.

The MCCA, which reimburses insurance companies for claims over $580,000 said drivers who decide to buy less personal injury protection coverage will not have to pay the $100 fee, unless the association is in a deficit position.

Due to the no-fault law, Michigan has had the highest average car insurance premiums in the country.


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