Michigan car fee for unlimited medical coverage will drop

LANSING (AP) — Michigan drivers who want unlimited personal injury protection benefits will pay $86 a vehicle starting next summer, down from $100 currently.

The fee was mandatory for decades but became optional beginning in July under a change in state law.

The Michigan Catastrophic Claims Association, a state-created nonprofit entity that reimburses auto insurers for medical claims surpassing $580,000, announced the 14 percent fee reduction last week.

It said the cut to the fee, which was $220 per vehicle between mid-2019 and mid-2020, is primarily due to health care cost controls and other changes in the 2019 law enacted by Democratic Gov. Gretchen Whitmer and the Republican-led Legislature.

The changes reduced the association's liabilities by $3.5 billion and eliminated a deficit position.

Motorists who forego personal protection benefits entirely and those who choose less coverage avoid the assessment.


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