Outman says MCCA rate increase illustrates broken system, need for reform

LANSING, Mich. — State Sen. Rick Outman said he was disappointed in Wednesday’s announcement by the Michigan Catastrophic Claims Association (MCCA) that a nearly 15 percent increase in its per-vehicle assessment auto insurance companies pay the organization will take place later this year.

“Michigan residents are already burdened with insane premiums and yesterday’s announcement will only make matters worse,” said Outman, R-Six Lakes. “This fee increase will surely be passed on to consumers and it 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.

“I think yesterday’s announcement was the final straw for a lot of people,” Outman said. “We have the highest insurance rates, we’re facing a proposal that would give us the highest gas tax, and now we’re adding this to the mix. Enough is enough.”

Outman said he thinks the announcement will encourage lawmakers to work even harder to get reforms to the no-fault system approved.

“The first bill introduced this legislative term seeks to address Michigan’s sky-high auto insurance rates by adding coverage options, combatting fraud, reducing burdensome costs and adding transparency to medical billing practices,” Outman said. “The bill was a big issue before, but now I think it will certainly jump to the top of everyone’s priority list.”

The senator also noted 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.

For more information on the Michigan Catastrophic Claims Association assessment increase please click here.

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