More savings on auto insurance to many policy holders are coming in 2021.

For years, Michigan drivers have been burdened with the highest, or among the highest, automobile insurance rates in the country. Bi-partisan reform signed into law in 2019 has helped alleviate some of pain with reductions in personal injury protection (PIP) rates and Michigan Catastrophic Claims Association (MCCA) fees. Beginning last July 2nd, MCCA fees dropped from $220 per vehicle to $100.

This past week, the MCCA announced that fee will be cut again, now to $86 per vehicle, effective July 1st, 2021. This applies to policyholders that choose to keep unlimited automobile no-fault insurance.

State Senator Lana Theis of Brighton Township said in a release, that while this reduction is welcome and overdue, she is encouraging motorists to call their agent or even shop around to make sure they are getting the best policy and price they can, especially if they have qualifying health insurance coverage.

Governor Gretchen Whitmer also issued a release following the announcement of the reduction, stating that she is pleased that reforms are continuing to result in greater savings than required by law, and that in these difficult times, it is more important than ever that Michiganders see rate relief.