Michigan's 2019 Auto Insurance Reforms Are Delivering Lower Costs for Drivers

Good news for Michigan drivers: a fee charged on every car in the state is going down again. The Detroit Free Press published a story reporting that the Michigan Catastrophic Claims Association (MCCA) announced it will lower its per-vehicle fee starting next July. The fee helps pay for care for people seriously injured in car crashes. Drivers with unlimited coverage will pay $73, down from $84. Everyone else will pay just $10, down from $19. Before Governor Gretchen Whitmer signed bipartisan auto no-fault reforms in 2019, every driver paid $220 per car. Today, they pay far less, and the MCCA says the lawsuit abuse reforms are the reason.

"When we look at the data, we can clearly see the positive effects of the reforms," said MCCA Executive Director Kimberly Bezy. She added, "At a time when the cost of everything from gas to groceries continues to rise, we are proud to announce this lower fee to keep more money in Michiganders' pockets."

Michigan's results echo what Florida drivers are seeing after their own reforms. When lawmakers fix the incentives that drive up litigation, families keep more of their money.

Other states facing soaring premiums should take note.