What is the Michigan Catastrophic Claims Association

The Michigan Catastrophic Claims Association (MCCA), is a private non-profit unincorporated association, created by the state Legislature in 1978. Michigan’s the only state where auto insurance no-fault law provides unlimited lifetime coverage for medical expenses from auto accidents. The MCCA fund will reimburse auto no-fault insurance companies for each Personal Injury Protection (PIP) medical claim paid more than a set amount. Currently, MCCA will reimburse Michigan auto insurance companies all medical costs over the $600,000 total. This total will increase to $635,00 effective July 1.

What is the new MCCA fee on July 1, 2023?

All auto insurance companies operating in Michigan pay to cover the catastrophic medical claims occurring in Michigan. All auto insurance policyholders pay for the assessments. Only Michigan insured’s who choose the unlimited medical option will have to pay the $122.00 per vehicle fee. The $122 assessment consists of $74 to pay anticipated new claims and an additional $48 assessment to address an estimated $3.7 billion deficit as of June 30, 2022.  Insureds choosing lower limits under Michigan’s revised no-fault law will have a $48 assessment. The $48 fee is assessed to offset potential MCCA deficits.  The current assessment period will be effective July 1, 2023, to June 30, 2024. The new assessment will increase from $100 to $148, effective July 1, 2023, for insureds keeping the unlimited medical option.

Exceptions from the Michigan Catastrophic Claims Association:

  • Historic vehicles will only pay 20 percent of the full assessment charged for vehicles effective July 1, 2003. The assessment for historic cars for 2023 is $24.40.
  • Motorcycles also have to pay into the fund but, motorcycles are not a motor vehicle under the no-fault law. Motorcycle drivers will not have the same unlimited medical coverage provided by the Michigan no-fault policy.  The fee for motorcycles is $122 the same as the unlimited PIP option.  Insureds have the option of purchasing additional medical coverage under a Michigan motorcycle insurance policy.

How much money does the Michigan Catastrophic Claims Association have:

As of December 31, 2021, financial statement, The Michigan Catastrophic Claims Association has over 27.840 billion in assets and 24,795 in projected liabilities.

Since 1979, MCCA has reported more than 46,661 catastrophic claims. Based on current estimates, the total claims paid, including the future payments for the 16,998 remaining active claims, are expected to exceed $85 billion. This figure assumes inflating costs for products, services, and accommodations necessary for the care, recovery, and rehabilitation of injured persons throughout their lives.

Find an Insurance Agent to Quote Michigan’s new Auto Rates.

Finally, to get a quote you can call an agent at 248-277-4505 or click the highlighted link to have an agent contact you with a Michigan Auto Reform quote to see how much you can save. For more information on the other changes that will affect Michigan auto policies, go to our update on Michigan Auto Insurance Reform.