Rep Jason Wentworth
Speaker-elect Wentworth: Latest MCCA rate reduction is more evidence that Michigan’s historic car insurance reform is working
RELEASE|November 25, 2020

Speaker-elect Jason Wentworth today said the latest rate reduction announced by the Michigan Catastrophic Claims Association is further evidence the state’s historic car insurance reform – spearheaded by the Legislature in 2019 – is successful.

The MCCA announced that its new annual fee, taking effect in July 2021, will be $86 per vehicle – down from the current $100 per vehicle. The MCCA’s per-vehicle assessment for the year-long period starting in July 2019 was $220, but it has dropped steadily since Wentworth led the Michigan Legislature’s approval of reforms.

The lower MCCA fee comes on top of guaranteed rate reductions and other expected savings written into state law through the 2019 reforms.

“Especially in these uncertain times, it’s more important than ever that Michigan drivers keep as much of their hard-earned income as possible,” said Wentworth, who chairs the House Select Committee on Reducing Car Insurance Rates. “The reforms adopted by the Legislature continue to save money for Michigan drivers and their families – and the changes will have long-lasting benefits for years to come.”

Michigan drivers now pay the lowest annual MCCA assessment since 2003. Wentworth noted many teenagers getting licenses today weren’t even born the last time the MCCA fee was this low.

Drivers will see this reduction in their premiums in July of 2021. The MCCA fee will be charged only to drivers choosing to maintain unlimited lifetime personal injury protection benefits in their car insurance policies. Drivers who choose lower coverage limits under Michigan’s revised no-fault insurance law will avoid the fee altogether.

The Legislature-approved reforms are ending Michigan’s tenure as the state with the nation’s most expensive car insurance. The reforms guarantee lower rates by giving drivers more choice on personal injury protection coverage, stopping price gouging on medical services for car accident victims, combatting fraudulent claims and strengthening consumer protections.

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