MCCA Changes Effective July 1, 2023
Michigan drivers are afforded some of the richest benefits in the nation through their auto insurance policies, including coverage options up to Unlimited Personal Injury Protection (PIP) benefits. To help provide this benefit, the State of Michigan administers the Michigan Catastrophic Claim Association (MCCA) as a means of distributing the cost among insurance carriers and consumers in Michigan.
Recently, you may recall getting a $400 per vehicle check in the mail from your insurance carrier. This was due to a surplus in the MCCA fund in the 2022/2023 year. Unfortunately, a variety of factors have caused the MCCA fund to go from a surplus to a deficit position in the past year – such as a court decision impacting prior No Fault claim payments, a less than stellar year in the stock market, and the over $3B in returned funds to Michiganders in summer/fall of 2022. As a result, the MCCA fund now has an estimated deficit of $3.7 billion.
How does this affect you? Beginning July 1, 2013, MCCA has restructured the fees charged for different levels of coverage – one for a current assessment and one to make up the assessment deficit. This is broken as follows:
If you carry unlimited medical benefits:
- You will be assessed a fee of $74 per vehicle (which is down $12 from 2022 levels)
- You will be assessed a fee of $48 per vehicle to recover the deficit.
If you have elected an option other than unlimited medical benefits:
- You will not be assessed the standard $74 MCCA fee
- You will be assessed a fee of $48 per vehicle to recover the deficit.
It is important to remember that these MCCA fees work the same for everyone with a vehicle in Michigan – it doesn’t change based on your insurance agent or company, the type of vehicle you have, or your driving record.
We are here to help you answer any questions that you may have about No Fault Reform or this assessment. Give us a call today:
