The fee auto insurers pay, and pass on to its customers, into an insurance fund to cover large claims related to car crashes – is coming down.
The Michigan Catastrophic Claims Association says insurers will pay $150 per vehicle for 2015, down from $186 the previous two years. The assessment change marks the first time the assessment has fallen since 2008.
The fund covers no-fault personal injury claims in excess of $545,000. The fee reported paying $1 billion in claims in 2014, or about $149 per vehicle.
Michigan Insurance Coalition spokesman, Tom Shields, says a major reason for the reduction is that the MCCA’s investments performed well in the past year.
Josh Hovey, spokesman for the Coalition Protecting Auto No-Fault, which has been pushing for more insight into the MCCA’s finances, lauded but questioned the assessment cut.