Auto insurance is a necessary expense that every car owner must bear. The cost of insurance varies from state to state and can be influenced by several factors, some of which are beyond the control of the driver. In Michigan, car insurance rates are set to rise as the Michigan Catastrophic Claims Association (MCCA) raises its fee.
What is the Michigan Catastrophic Claims Association?
The Michigan Catastrophic Claims Association (MCCA) is a non-profit organization that was created by the Michigan legislature in 1978. Its primary function is to provide unlimited medical coverage to people who suffer catastrophic injuries in car accidents. This coverage is provided to all drivers in Michigan as part of their auto insurance policy.
Why is the MCCA Raising its Fee?
The MCCA is raising its fee because of the rising cost of medical care. The organization has been paying out more and more money to cover the medical expenses of people who have been injured in car accidents. As a result, the MCCA is increasing its fee from $170 to $220 per vehicle per year, starting on July 1, 2019.
How Will This Affect Auto Insurance Rates?
The increase in the MCCA fee will have a direct impact on auto insurance rates in Michigan. Car insurance companies will pass on the increased cost to their customers. According to some estimates, the average auto insurance premium in Michigan could increase by as much as $200 per year.
What Can Drivers Do to Reduce Their Auto Insurance Rates?
There are several things that drivers can do to reduce their auto insurance rates. One of the most effective ways to lower your car insurance premium is to shop around and compare rates from different companies. You can also consider raising your deductible or reducing your coverage limits to save money. Another option is to take advantage of discounts that are offered by insurance companies, such as safe driver discounts or loyalty discounts.
Conclusion
In conclusion, auto insurance rates in Michigan are set to rise as the MCCA raises its fee. This increase is due to the rising cost of medical care. If you are a driver in Michigan, it is important to be aware of these changes and take steps to reduce your auto insurance rates. By shopping around, raising your deductible, and taking advantage of discounts, you can save money on your car insurance premium.