Michigan Auto Insurance Assessment Fees Have Dropped
Drivers will see lower costs on their insurance bills for the upcoming 2027-28 fiscal year.
Updated on Oct. 12, 2026 in Insurance
Live Poll
Are auto insurance costs in your area trending toward being more affordable for households?
The Michigan Catastrophic Claims Association has announced a reduction in assessment fees for the 2027-28 fiscal year. This change provides relief for Michigan policyholders following shifts in the state's insurance landscape.
Why it matters
Lower per-vehicle fees are tied to auto insurance reforms signed in 2019 that changed how the association manages liabilities. This shift directly impacts the annual costs Michigan households face for mandatory auto coverage.
The total assessment fee for 2027-28 is set at $73, consisting of a $63 pure premium and a $10 deficit recoupment charge. This compares to an $84 total for the current 2026-2027 period, a significant decrease from the $220 peak reached during the 2019-2020 fiscal year.
The players
Michigan Catastrophic Claims Association
A private, nonprofit reinsurer that manages assessment fees to fund lifetime care for catastrophic auto accident victims.
The details
The Michigan Catastrophic Claims Association acts as a private, nonprofit reinsurer that collects fees to cover lifetime medical care for victims of catastrophic auto accidents. By bundling these charges into auto policies, the association reimburses insurance companies for unlimited personal injury protection claims. When the association's estimated liabilities exceed its current assets, it charges an additional per-vehicle deficit amount to all drivers.
Timeline
1978: The association began operating as a reinsurer for the state.
2019: Auto no-fault legislation was signed into law in Michigan.
2019-2020: The total assessment fee reached an all-time high of $220.
2026-2027: The current assessment fee is $84 per vehicle.
2027-2028: The new, lower fee structure takes effect for the fiscal year.
Money Landscape
This decline in fees follows the implementation of the 2019 Michigan auto no-fault legislation. It reflects a broader multi-year trend of reduced assessments compared to the historical peak of $220.
Michigan drivers can expect a slight reduction in their total auto insurance premiums due to the lower assessment fee. Consult with your insurance provider or a qualified financial professional to see how this change reflects on your specific policy renewal statement.
The takeaway
The decrease in assessment fees offers a measurable reduction in the cost of insuring a vehicle in Michigan. Keep an eye on your policy renewal notices for the 2027-28 cycle to ensure the lower assessment rate is accurately reflected in your total premium.
Further reading
For more on managing your coverage costs, visit Insurance.
Live Poll
Are auto insurance costs in your area trending toward being more affordable for households?
