Democrats Fight For Lower Insurance Rates
The Michigan Senate passed legislation this week that increased the retention level of the Michigan Catastrophic Claims Association (MCCA) from $250,000 to $500,000. Currently, in the event of an automobile related accident, your insurance company pays medical costs up to $250,000 and MCCA covers the remainder. This legislation requires that insurance companies would now have to pay and additional $250,000 before the MCCA payments kick-in.Senate Democrats opposed Senate Bill 199 citing the strong possibility of increased insurance rates as the result of the raise. During committee testimony of the legislation, even the state's insurance commissioner could not rule out the possibility of a rate hike. Legislators indicated that their constituents objected to the legislation because they will be unable to afford higher insurance premiums. The legislation now goes to the Michigan House of Representatives for consideration.