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Insurance rates to jump barely 2 years after controversial reforms purportedly reduce costs

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Posted at 7:05 AM, Sep 30, 2022
and last updated 2022-09-30 10:45:51-04

LANSING, Mich. — Michigan drivers are facing an auto insurance hike starting next year.

The Michigan Catastrophic Claims Association says it has to raise fees to cover a multi-billion dollar deficit.

Last week -- the MCAA released it's 2023-2024 insurance company assessment, saying it received higher than anticipated claims costs after the court of appeals ruled the no-fault auto insurance reforms didn't apply to people who bought policies before the law was signed in 2019.

They’re expecting a $3.7B deficit.

The hike depends on drivers’ personal injury protection coverage -- or PIP.

Those with unlimited PIP benefits will now pay $122 dollars.

Drivers choosing lower levels of PIP coverage-- or none at all -- will pay an MCCA assessment fee of $48 dollars beginning July 1st next year.