MCCA
Michigan is the only state that offers unlimited personal injury protection benefits. These benefits are
offered through no-fault auto insurance policies. The Michigan Catastrophic Claims Association
(MCCA) reimburses no-fault auto insurers for benefits that exceed $400,000, as of July 1, 2006.
MCCA was created by the legislature as a means of spreading costs across all Michigan motorists for
providing these unique unlimited benefits.
Although created by statute, the MCCA is a private, nonprofit association. All of its dealings are with
insurance companies, not the general public. The MCCA has a Board of Directors that consists of 5
representatives from insurance companies, appointed by the Commissioner of the Office of Financial
and Insurance Services (OFIS) according to statute. The insurance companies appointed to serve on
this board are among the top writers, by volume of business, of auto insurance in Michigan. The
Commissioner of OFIS serves as an ex-officio member of the board without a vote.
How is the MCCA assessment determined?
Each year, the MCCA analyzes the amount needed to cover the lifetime claims of all people
catastrophically injured in a car accident. This analysis includes review of the investment return that
the fund receives, medical cost inflation, and any changes to coverages. The analysis yields an
amount needed to pay those lifetime claims and a per vehicle assessment is set based on that
amount.
Since 1979, 19,000 catastrophic claims have been reported to the MCCA. Based on current
estimates, more than 10,633 claims remain active, resulting in future lifetime payments in excess of
$55 billion. This figure assumes inflating costs for products, services, and accommodations necessary
for the care, recovery and rehabilitation of injured persons throughout their lives. The MCCA further
estimates that an additional 1,400 Michigan insureds will be catastrophically injured in auto accidents
next year. It is the cost of providing these medical benefits that influences the MCCA assessment.
How is the MCCA funded?
An MCCA assessment is charged to every Michigan auto insurance premium. The assessment funds a
pool of money for medical costs resulting from an auto accident exceeding $500,000.
What will happen to the assessment in the future?
The MCCA Board meets every spring to set the assessment for the year beginning July 1st. The
assessment is set using the same criteria – by analyzing the amount needed to cover the lifetime
claims of all people catastrophically injured in a car accident. Investment return, medical cost
inflation, and any changes to coverages will again be considered.
Do I pay the full assessment if I own a historic vehicle?
Public Act 662 of 2002 reduced the MCCA assessment for historic vehicles to 20 percent of the full
assessment charged for vehicles effective July 1, 2003. The assessment for historic vehicles
beginning July 1, 2006 will be $27.47.
Michigan is the only state that offers unlimited personal injury protection benefits. These benefits are
offered through no-fault auto insurance policies. The Michigan Catastrophic Claims Association
(MCCA) reimburses no-fault auto insurers for benefits that exceed $400,000, as of July 1, 2006.
MCCA was created by the legislature as a means of spreading costs across all Michigan motorists for
providing these unique unlimited benefits.
Although created by statute, the MCCA is a private, nonprofit association. All of its dealings are with
insurance companies, not the general public. The MCCA has a Board of Directors that consists of 5
representatives from insurance companies, appointed by the Commissioner of the Office of Financial
and Insurance Services (OFIS) according to statute. The insurance companies appointed to serve on
this board are among the top writers, by volume of business, of auto insurance in Michigan. The
Commissioner of OFIS serves as an ex-officio member of the board without a vote.
How is the MCCA assessment determined?
Each year, the MCCA analyzes the amount needed to cover the lifetime claims of all people
catastrophically injured in a car accident. This analysis includes review of the investment return that
the fund receives, medical cost inflation, and any changes to coverages. The analysis yields an
amount needed to pay those lifetime claims and a per vehicle assessment is set based on that
amount.
Since 1979, 19,000 catastrophic claims have been reported to the MCCA. Based on current
estimates, more than 10,633 claims remain active, resulting in future lifetime payments in excess of
$55 billion. This figure assumes inflating costs for products, services, and accommodations necessary
for the care, recovery and rehabilitation of injured persons throughout their lives. The MCCA further
estimates that an additional 1,400 Michigan insureds will be catastrophically injured in auto accidents
next year. It is the cost of providing these medical benefits that influences the MCCA assessment.
How is the MCCA funded?
An MCCA assessment is charged to every Michigan auto insurance premium. The assessment funds a
pool of money for medical costs resulting from an auto accident exceeding $500,000.
What will happen to the assessment in the future?
The MCCA Board meets every spring to set the assessment for the year beginning July 1st. The
assessment is set using the same criteria – by analyzing the amount needed to cover the lifetime
claims of all people catastrophically injured in a car accident. Investment return, medical cost
inflation, and any changes to coverages will again be considered.
Do I pay the full assessment if I own a historic vehicle?
Public Act 662 of 2002 reduced the MCCA assessment for historic vehicles to 20 percent of the full
assessment charged for vehicles effective July 1, 2003. The assessment for historic vehicles
beginning July 1, 2006 will be $27.47.
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| _Frequent Questions |
Automobile
What is the Michigan
Catastrophic Claims
Association (MCCA)?
Bills
Why is it important to pay
my bill on time?
Claims
What if I don't replace my
property, does the
insurance company still pay
replacement cost?
Should I have my car
windshield repaired or
replaced?
What do I have to do to
have my claim paid? What
are my responsibilities
during a claim?
General
Why do insurance
companies use insurance
score discounts? Is it fair?
Property
Why is my replacement cost
more than my home or
building is worth?