Start Comparing Rates within Minutes!
Start Comparing Rates within Minutes and you could save!
Compare Rates Within Minutes!
- Complete 1 short quote form
- Compare rates from top insurers
- Save time & money!
Michigan auto insurance assessment risingPosted On Wed, April 28, 2010
The cost for insurance assessments in Michigan is about to rise.
The Michigan Catastrophic Claims Association announced Thursday that costs for assessments to insurance companies will be increasing 14 percent. The revised cost will be $143.09 and will start on July 1, 2010 and be effective through June 30, 2011. The MCCA's current assessment cost is $124.89.
The decision to raise assessment costs came in response to the annual actuarial evaluation required by Michigan law. The reason the assessment increased is due mostly to longer periods of treatment for injured persons and lower long-term investment assumptions.
Because of Michigan's No-Fault Insurance Act, the MCCA is required to charge a premium that will cover expected losses and expenses the company is likely incur during the year. Michigan happens to be the only state that requires unlimited lifetime medical benefits for those injured in auto accidents.
In 2009 the MCCA paid $811 million for claim costs resulting from catastrophic injuries. Michigan estimates almost 1,200 insured residents will be catastrophically injured in auto accidents next year.
Michigan state law created the MCCA in 1978.
Feedback or questions? Email the editor here.