Daley: MCCA rate increase illustrates broken system, need for reforms

LANSING, Mich. — State Sen. Kevin Daley said Wednesday’s announcement by the Michigan Catastrophic Claims Association (MCCA) that a nearly 15 percent increase in its per-vehicle assessment will take place later this year shows the faults of the current system and a desperate need for reform.

“Michigan residents pay the highest premiums in the nation and yesterday’s announcement will lead to even higher rates,” said Daley, R-Lum. “This fee increase, which will surely be passed on to consumers, further illustrates the need for meaningful reforms to make auto insurance more affordable.”

The MCCA announced on Wednesday that its assessment on auto insurance companies will increase by $28 on July 1 from $192 to $220. The increase will ultimately be passed on to drivers in the form of higher rates.

“The Senate is taking the lead on reforming the no-fault system with the first bill of the term setting the stage for future reforms,” Daley said. “The comprehensive reform seeks to add flexibility, combat fraud and reduce burdensome costs. I think yesterday’s announcement will only further fuel current legislative efforts.”

Daley added that a new website has been launched to allow drivers to let policymakers know what reducing auto insurance rates would mean to them.

Residents can tell their stories about what lower auto insurance rates would mean to their family at www.IfMiRatesWereLower.com.

“It is important for residents to let their voices be heard,” Daley said. “I encourage drivers to submit their stories as we continue taking testimony and gathering important information needed to provide meaningful relief.”

More information on Wednesday’s announcement can be found here.

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