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Michigan car fee for unlimited medical coverage will drop

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Posted at 4:40 PM, Nov 25, 2020
and last updated 2020-11-25 16:40:51-05

LANSING, Mich. — Michigan drivers who want unlimited personal injury protection benefits will pay $86 a vehicle starting next summer, down from $100 currently.

The fee was mandatory for decades but became optional beginning in July under a change in state law.

The Michigan Catastrophic Claims Association, a state-created nonprofit entity that reimburses auto insurers for medical claims surpassing $580,000, announced the 14% fee reduction Wednesday.

It said the cut to the fee is primarily due to health care cost controls and other changes in the 2019 law enacted by Democratic Gov. Gretchen Whitmer and the Republican-led Legislature.