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Insurance Rate Dips for State's Motorists

Mar 14, 2007

By Chris Christoff, Detroit Free Press

Mar. 15--LANSING -- Michigan motorists got some good news Wednesday: It'll cost them $14.18 less for annual insurance premiums starting July 1.

The Michigan Catastrophic Claims Association (MCCA) reduced its surcharge, which is included in all Michigan no-fault auto insurance policies.

The new assessment will be $123.15 per vehicle.

It's the second consecutive MCCA fee 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 rise gradually to $500,000 in 2011.

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 1,300 people will require catastrophic medical care in the coming year.

The nonprofit organization said it paid $668 million in claims during 2006.

Contact CHRIS CHRISTOFF at 517-372-8660 or christoff@freepress.com.

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Copyright (c) 2007, Detroit Free Press

Distributed by McClatchy-Tribune Business News.

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