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MCCA Fees and What They Mean To You

As it is a hot topic right now, we wanted to take this opportunity to educate you, our customer, on MCCA fees. 

What is an MCCA fee and what does it cover?
The Michigan Catastrophic Claim Association (MCCA) is a fee that is assessed on Michigan auto policies paid on a per vehicle basis for medical benefits paid in excess of $555,000 per claim. All insurance companies operating in Michigan are required to contribute to the MCCA to cover the cost of medical benefits guaranteed under Michigan Law. Personal Injury Protection coverage is mandatory and provides unlimited lifetime medical auto insurance benefits. 

In short, you are paying for the best medical coverage in the United States when an individual is involved in an auto accident. If you are ever involved in a serious accident, MCCA entitles you to unlimited lifetime coverage of medical expenses.

Who determines this fee?
An independent actuarial consulting firm analyzes the data and provides the MCCA with an estimate of the cost per vehicle for the upcoming fiscal year, as well as any deficit or surplus to the reserves. That amount is added in to your annual auto insurance cost.

What is the cost of the fee?
Effective July 1, 2018 to June 30, 2019, this fee will be increasing from $170.00 per vehicle to $192.00 per vehicle. The cost is the same no matter which insurance carrier you use. The increase is due to higher than expected claims & expenses over the last year and the rising cost of medical care. 

What is going on at the State Government level with respect to MCCA?
In the fall of 2017, a bill was presented to the Michigan House to reform no-fault auto insurance, but it was not approved. House Representatives continue to work on reform.

If you have any further questions regarding MCCA fees or your policies in general, don't hesitate to call us at (586) 949-2300. Thank you for trusting us with your insurance!