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 $545,000, for policies issued
through June 30, 2017. The 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
Since 1979, over 30,000 catastrophic claims have been reported to the MCCA. Based on current
estimates (2014), more than 14,000 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
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 a threshold of $545,000
for policies issued through June 30, 2017.
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 other vehicles. The assessment for historic vehicles beginning July 1, 2016
will be $32.00.
What about motorcycles? Do they pay an MCCA fee?
Motorcycles are subject to MCCA fees. As of June 30, 2011, Motorcycles account for 5.37% of the
claims paid by MCCA and represent 2.3% of the assessments paid in. Unless a motorcyclist is
injured in an accident with a motor vehicle, he/she is not entitled to no-fault benefits, as
motorcyclists are not required to purchase no-fault medical benefits. They receive such benefits
when injured in an accident with a motor vehicle because they are collecting under the motor
vehicles no-fault policy and not their own policy. If a motorcyclist is NOT involved in an accident with
a motor vehicle, then the occupants of the motorcycle are only eligible for benefits that were
purchased from the motorcycle insurer.
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