Yaroch bill allows drivers to opt out of MCCA fee

first_img06Apr Yaroch bill allows drivers to opt out of MCCA fee Categories: News,Yaroch News The time is now for no-fault reform as MCCA announces increase in feeState Rep. Jeff Yaroch of Richmond has introduced an auto insurance reform bill, which allows motorists to opt out of paying the Michigan Catastrophic Claim Association (MCCA) fee by allowing drivers a choice on the level of personal injury protection (PIP) coverage.The MCCA, the entity that reimburses car insurers for personal injury benefits exceeding $555,000 per claim, announced recently that it would raise the fee it charges drivers to $192 dollars per year. House Bill 5552 would give drivers more choice and flexibility on coverage by introducing a new level of PIP coverage. Drivers will be able to opt out of paying the MCCA fee and see real savings on their premiums by choosing a coverage level of $555,000, or they can continue to purchase the unlimited medical coverage required by current state law.“Michigan is the only state in the country that forces people to have unlimited medical benefits, regardless if they have other insurance coverage,” Yaroch said. “I have heard loud and clear that the people are upset about their car insurance rates and the latest increase by the MCCA in the fee it charges drivers. I want to give people another option.”House Bill 5552 has been referred to the House Insurance Committee for consideration.#####last_img

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