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Michigan Motorists to Save on Car Insurance

Mar 13, 2007

By Chris Christoff, Detroit Free Press

Mar. 14--LANSING -- Some good news for Michigan motorists:beginning July 1 the cost of their car insurance will go down $14.18.

The Michigan Catastrophic Claims Association (MCCA) on Wednesday reduced its surcharge, which is included in all Michigan no-fault auto insurance policies. The new, lower assessment will be $123.15 per vehicle.

It's the second consecutive MCCA reduction, after a slight increase in 2005. The assessment pays for medical care of those severely injured in auto accidents and require more than $420,000 in care. That threshold will gradually rise to $500,000 in 2001.

The MCCA cited fewer severe injuries than expected, and higher investment returns in the stock market, as reasons for the rate cut.

The MCCA estimates that 1,300 people will require catastrophic medical care in the coming year. The non-profit organization announced that it paid out $668 million in claims during 2006.

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Copyright (c) 2007, Detroit Free Press

Distributed by McClatchy-Tribune Business News.

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