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Barrett: MCCA fee increase illustrates need for action on car insurance reform

LANSING, Mich. — Sen. Tom Barrett said the announcement on Wednesday by the Michigan Catastrophic Claims Association (MCCA) that it is increasing its assessment on insurers by 15 percent illustrates the need for comprehensive auto insurance reform.

“The University of Michigan just produced a study showing that auto insurance is unaffordable in 97 percent of zip codes in Michigan. This latest increase makes that problem even worse,” said Barrett, R-Charlotte. “I remain dedicated to passing meaningful auto insurance reform to make driving a car affordable for all families in our state.”

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

“The Senate is working on real reform that will reduce the cost of car insurance, and I am committed to that effort,” Barrett said.