Michigan car insurance fee for medical coverage will drop

Michigan

FILE- In a June 23, 2015, file photo, traffic heads north along the Lodge freeway in Detroit. Michigan drivers will have choices to make when they renew or buy a new auto insurance policy under a law taking effect Thursday, July 2, 2020. Motorist can buy unlimited personal injury protection, but it will no longer be mandatory. (AP Photo/Carlos Osorio, File)

LANSING, Mich. (AP) — 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.

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