Auto insurance fee to drop in July

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By Beth Boehne

Story Created: Mar 5, 2008 at 5:23 PM EST

Story Updated: Mar 5, 2008 at 6:16 PM EST

LANSING, Mich. (AP) — Michigan motorists will save more than $18 on the insurance assessment they pay to a fund helping support seriously injured accident victims.

The Michigan Catastrophic Claims Association says its annual assessment on insurance companies will drop by $18.57 to $104.58 per vehicle. The change will take effect July 1 and last through June 30, 2009.

The assessments are passed on from insurance companies to motorists' annual insurance bills.

The group was able to drop the charge this year after getting more from investments than expected and seeing medical costs not rise as fast as projected.

Michigan is the only state to offer unlimited lifetime medical benefits for people seriously injured in auto accidents.

"Lowering rates for Michigan drivers is a move in the right direction," Rep. Virgil Smith, a Detroit Democrat and chairman of the House Insurance Committee, said in a statement.

Smith is one of the lawmakers who has backed legislation that would make portions of MCCA proceedings open to more public scrutiny.

The bills have passed the House and are now in the Senate.

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