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Mich. drivers will pay less for unlimited lifetime coverage for crash injuries, insurance group says

Car crash with deployed airbags.
Pixabay
Car crash with deployed airbags.

Michigan drivers who want unlimited lifetime coverage for crash injuries will pay $100 per vehicle starting in July - a reduction from the $220 they are assessed now.

The Michigan Catastrophic Claims Association announced the 55% fee cut on Wednesday, months after the passage of a new law making the mandatory benefit optional beginning next summer.

The new law allows drivers to opt out of coverage for unlimited lifetime medical benefits for people catastrophically injured in car crashes. It also limits charges for many medical treatments.

Changing the auto insurance law was fiercely debated until Governor Gretchen Whitmer signed the new law that allows people to choose different levels of coverage.

Critics of the new law say it will leave many injured people without the care they need and the true cost will fall on people who are catastrophically injured who require expensive lifetime care. Supporters say it will make insurance more affordable, and it will lead to fewer people driving without insurance.

Gov. Whitmer released the following statement on Wednesday:

"Today's reduction by the MCCA demonstrates that our historic bipartisan legislation will provide real savings to Michigan drivers," said Governor Whitmer. "The new law will enhance consumer protections and continue to lower costs for Michiganders by mandating rate reductions for eight years. Millions of Michigan drivers will finally see relief under a new system that maintains the highest benefits in the country."

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.
The Associated Press is an independent global news organization dedicated to factual reporting.
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