Cheaper Auto Insurance For Michigan Drivers

In the State of Michigan, all auto insurance companies are required to pay an assessment of $186 every year, for each policyholder, in payment for Personal Injury Protection (PIP) benefits.  This cost is typically passed on to the consumer, Michigan drivers. 

As stated directly by the MCCA:

Michigan's unique auto insurance no-fault law provides unlimited lifetime coverage for medical expenses which result from auto accidents. The MCCA reimburses auto no-fault insurance companies for each Personal Injury Protection (PIP) medical claim paid in excess of a set amount. Currently that amount is $530,000. That means that the insurance company pays the entire claim, but is reimbursed by the MCCA for medical costs over $530,000.

On March 25, 2015, the MCCA announced that the assessment would be dropping to $150, in turn, likely making car insurance cheaper for Michigan residents.  This change takes effect July 1st, 2015 and will last for one year. 

In 2014, the MCCA “paid out $1 billion, mostly for brain and spinal cord injuries, multiple fractures, and back and neck injuries.” In 2015, the MCCA hopes to use $4.50 of assessed $150 to balance a deficit of $292 million for existing claims. “$145.10 will cover anticipated new claims.”

PIP benefits include the cost of medical treatment, wage loss, attendant care, and replacement services.

The Michigan Law Firm, PLLC helps people injured in car crashes to open insurance claims and to identify and receive these PIP benefits. Call our experienced team at 844.4MI.FIRM or click here for a free consultation.  



Michigan Catastrophic Claims Association

Detroit Free Press

Michigan Radio