Rollout of state’s new no-fault law a major milestone
After nearly 50 years of being forced to purchase what became the most expensive car insurance in the nation, Michigan drivers will finally have the long-overdue rate relief they deserve after the state’s new no-fault law takes effect July 1, Rep. Jason Wentworth announced today.
Wentworth, chair of the House Select Committee on Reducing Car Insurance, led the Legislature in approving a major overhaul to Michigan’s much-maligned no-fault system. The new law guarantees lower rates by giving drivers more choice on personal injury protection coverage, stopping price gouging on medical services for car accident victims, combating fraudulent claims and strengthening consumer protections.
Wentworth said car insurance has been one of the largest pocketbook issues holding back Michigan families and the state, adding the new law was designed to retain the nation’s best car insurance coverage and offer drivers more affordable options.
“Michigan had the highest auto insurance rates in the nation. Across the state, we were hearing from constituents on the need for car insurance reform,” said Wentworth, of Farwell. “I, along with my House colleagues, made it our mission to succeed where previous legislatures failed. The 100th Legislature came together in a bipartisan way, set its differences aside and delivered a meaningful solution to a system responsible for financial hardship within many Michigan households.”
In addition to the guaranteed savings provided under the new law, the Michigan Catastrophic Claims Association (MCCA) announced it was reducing its annual per-vehicle assessment fee of $220 to $100 beginning July 1. The MCCA credited the reforms sparked by Wentworth for the fee reduction that is nearly a 20-year low.
Michigan drivers interested in more information on the new law may visit www.ReduceMiRatesNow.com, a user friendly platform that includes a rundown of all the new coverage level options, educational guides and shopping tips to help people maximize savings. Wentworth also encourages residents to consult with a trusted insurance agent for further advice on choosing a coverage plan that best suit their individual and family needs.
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