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Insurance fee charged to many MI drivers to drop by 50%

Flickr User Max Klingensmith

An insurance industry group says a fee charged to many Michigan drivers will drop by more than half. That’s due to a change in the state’s auto insurance law.

Michigan no longer requires every driver to carry accident insurance that pays lifetime medical benefits for people injured in car crashes. That policy change means the fee to pay for those benefits will drop to 100 dollars a year. The Michigan Catastrophic Claims Association says that’s a 55 percent reduction. Drivers who choose less coverage won’t have to pay the fee at all.

The new law was fiercely debated before it was adopted by the Legislature and signed by Governor Gretchen Whitmer. Critics say it will leave people with catastrophic injuries without the care they need. Supporters say it will make insurance more affordable, and it will lead to fewer people driving without insurance.

Rick Pluta is the Capitol Bureau Chief for the Michigan Public Radio Network. He is heard daily on WCMU's Morning Edition and All Things Considered.