Michigan Insurance Association Reduced Assessment Fees

Why it matters

The fee reduction is tied to the effects of auto insurance reforms signed in 2019. By lowering these mandatory assessments, the state reinsurer aims to manage the financial burden on policyholders while continuing to fund lifetime care for catastrophic accident victims.

The details

The Michigan Catastrophic Claims Association operates as a private, nonprofit reinsurer that provides reimbursements to insurance companies for unlimited personal injury protection claims. When estimated liabilities exceed assets, the group charges an additional per-vehicle deficit amount to all drivers.

Timeline

1. The association has served Michigan drivers as a reinsurer since 1978.

2. Auto no-fault legislation was signed into law in 2019.

3. Total assessment fees reached an all-time high during the 2019-2020 period.

4. The 2026-2027 fiscal year current total assessment fee stands at $84.

5. New lower fees will take effect for the 2027-28 fiscal year.

Market Dynamics

This adjustment follows the implementation of the 2019 Michigan auto no-fault insurance reform legislation. The ongoing reduction in assessment fees highlights a shift in the state's insurance cost structure as the industry adapts to new legislative requirements.

The takeaway

Drivers should verify their upcoming insurance statements to ensure the reduced assessment fees are correctly applied. Staying informed about these periodic adjustments can help families better budget for annual transportation expenses.

Further reading

For more information on state coverage requirements, visit our guide to Michigan Insurance.