MICHIGAN, USA — Michigan drivers could soon start paying more for car insurance due to a Michigan Catastrophic Claims Association (MCCA) deficit.
Rates are due to increase by $48 next year. This rate hike will take effect in July of 2023 and is not permanent. It ends June 30, 2024.
These rate hikes come after drivers were given $400 refund checks from the MCCA when they had a surplus of funds.
MCCA, which is a private non-profit, is now in an estimated $3.7 billion deficit. A new report shows that's due to declines in the stock market, distributing refund checks and a court overturning the retroactive elimination of healthcare benefits to catastrophic crash survivors.
Proponents of the checks say when the stock market rebounds, drivers will get that money back in rebate checks. But critics say the move was reckless, and now drivers are paying for it.
Many of those opponents are survivors of catastrophic crashes and their loved ones. They've been demanding action by lawmakers to fix no-fault insurance since it was passed.
"I have stacks and stacks and stacks of bills that are unpaid," said one survivor. "She planned ahead, bought insurance, had it for 27 years and they pulled the rug out from a helpless person. They should be ashamed of themselves."
There have been multiple bills introduced to address the issue. They have all stalled in Lansing.
Click here to see the MCCA's report.
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