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PROPOSAL D WOULD PROVIDE INSURANCE RATE SAVINGS, SAYS AAA MICHIGAN

 PROPOSAL D WOULD PROVIDE INSURANCE RATE SAVINGS, SAYS AAA MICHIGAN
 DEARBORN, Mich., Oct. 8 /PRNewswire/ -- The Michigan Catastrophic Claims Association (MCCA) announcement today (Oct. 8) of its per car statutory assessment with passage of Proposal D at the polls Nov. 3 proves there will be an auto insurance rate savings for Michigan motorists, according to AAA Michigan.
 There is a current $110.58 annual per car MCCA assessment to cover unlimited medical costs for catastrophically injured auto accident victims. This is scheduled to go to $118.69 in 1993 if Proposal D does not pass. Passage of Proposal D would replace unlimited medical coverage and produce these MCCA savings from the current assessment for motorists, depending on the level of medical coverage chosen:
 -- $250,000 -- $89 savings.
 -- $500,000 -- $74 savings.
 -- $750,000 -- $64 savings.
 -- $1 million -- $47 savings.
 -- $2 million -- $37 savings.
 -- $3 million -- $29 savings.
 -- $4 million -- $24 savings.
 -- $5 million -- $21 savings.
 "The 2,000 percent increase in the MCCA assessment over the past decade demonstrates the need for controls on the cost of medical care," stated Terrence W. Shea, AAA Michigan Insurance vice president. "Between 1985 and 1990, medical costs have gone up four times faster than the rate of inflation," Shea said.
 To help control medical costs, Proposal D requires motorists to carry at least $250,000 medical coverage, and provides up to $5 million in optional coverage. AAA Michigan states that less than 1 percent of auto accident medical claims exceeded $250,000 last year or since the current system began in 1973.
 Passage of Proposal D will result in rate reductions from controls on medical and legal expenses ranging from an average of 10 percent to an average of 20 percent, depending on coverages selected. Motorists who need only mandatory coverages could reduce rates as much as 40 percent.
 In addition to medical cost savings, Proposal D would reduce rates by controlling legal expenses which recently have gone up five times faster than inflation.
 Shea added: "Only by controlling medical and legal costs can we reduce rates for motorists and keep auto insurance affordable in the future."
 -0- 10/8/92
 /NOTE: For broadcast-ready actualities, call 313-336-1323. CONTACT: Tom Freel of AAA Michigan, 313-336-1512/ CO: AAA Michigan ST: Michigan IN: INS AUT SU:


JG -- DE024 -- 8000 10/08/92 15:39 EDT
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Publication:PR Newswire
Date:Oct 8, 1992
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