No Fault Auto Reform – MCCA Changes


This week, the Michigan Catastrophic Claims Association (MCCA) released the 2020-2021 per vehicle assessment. The current assessment of $220 will be lowered to $100 for the period beginning July 2, 2020 through June 30, 2021. That is a 55% reduction!

The $100 assessment will only be charged to those who choose to keep their unlimited lifetime personal injury protection benefits. Those who choose lower limits under the new no-fault law will not be charged the assessment as long as the MCCA is not in a deficit position.

In a press release, the MCCA states that, “the 55% reduction results directly from savings created by cost controls for medical treatment and other changes made to Michigan’s no-fault insurance law on June 11, 2019. These changes are estimated to erase the MCCA’s deficit of approximately $2.0 billion and reduce the annual MCCA assessment by approximately $1.0 billion.”

This is one of the first changes stemming out of recent No Fault Legislation that will go into effect in 2020. My Member Insurance Agency is committed to providing you with detailed information so that you can make informed choices about your insurance needs. If you have questions about this change or any of the no fault changes upcoming, please contact our office at (989) 781-2662 or stay tuned to www.mymemberinsurance.com for further updates.

Leave a Comment

Contact Us

Send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt