Nofault reform needed more than ever after rate increase

first_img04Apr No-fault reform needed more than ever after rate increase Categories: Griffin News,News I was shocked, as I am sure you were, to see the car insurance fees families pay to fund the Michigan Catastrophic Claims Association (MCCA) are again being raised in July.This is outrageous. It is yet another example of special interests driving the increase in the personal injury protection (PIP) aspect of no-fault auto insurance at the expense of hard-working Michiganders.When the MCCA was created in a 1978 law, it was funded by a $3-per-vehicle assessment. The funds raised by the association are designated to provide medical care to people who suffer catastrophic injuries in vehicle accidents.Beginning in July, our mandated contribution to the fund will be $192 per car. That means we will pay an additional $22 – or 13 percent compared to the current rate – for a system that lacks choice and transparency. This contributes to the sad fact that Michigan families are paying the highest auto insurance premiums in the nation.The MCCA has amassed tens of billions of our dollars over the last 30 years and spends the money without robust oversight or reporting. Michigan families are forced to pay these fees, but have no say how their hard-earned money is being used.We have attempted to reform no-fault insurance. Last year I voted for reform to give drivers a choice on how much coverage they want to pay for. This would have resulted in significant rate reductions.Unfortunately, the House failed to approve this solution. Strong lobbying by hospitals, trial lawyers and other interest groups prevented its passage.We need an answer, and I will work tirelessly, as your voice in Lansing, to either reform current law and reduce rates for auto insurance or support a different solution to relieve families of this unwarranted financial burden.last_img

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