Michigan Car Insurance Fee Falling To $100 A Vehicle In July

Nov 13, 2019

FILE- In a June 23, 2015, file photo, traffic heads north along the Lodge freeway in Detroit. Michigan
Credit Carlos Osorio/AP Photo/File

LANSING, Mich. (AP) — Michigan drivers who want unlimited lifetime coverage for crash injuries will pay $100 per vehicle starting in July — a reduction from record $220 they are assessed now.

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

The state-created entity that reimburses insurers for claims surpassing $580,000 says those who buy less personal injury protection coverage will avoid the $100 fee altogether, unless the association is in a deficit position. Michigan has the highest average car insurance premiums in the country.