Michigan auto insurance rates should not be affected by high court ruling - Nothaft

August 3, 2023 Detroit News

Amanda Nothaft, Detroit News: It's difficult to imagine how the Michigan Catastrophic Claims Association would suddenly come up short for individuals it had been tasked with paying for years ahead of the 2019 law change, said Amanda Nothaft, director of data and evaluation at the University of Michigan's Poverty Solutions.

"I'm trying to get my head around how they managed the funds in such a way that they need the future contributions to pay for past injured," Nothaft said. "To attribute it all to this ruling – it seems like an exaggeration."

If a significant portion of those savings are due to consumers' choice of lower tiers of coverage – an option that remains untouched with Monday's decision – there's no reason insurance rates outside of the MCCA fee should increase by any significant amount, Nothaft said.

"I don't see this ruling as a reason for why rates should increase," she said.