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The Michigan Catastrophic Claims Association (the MCCA) assessment to insurance companies will be $186.00 per insured vehicle effective July 1, 2013 to June 30, 2014.  This is an increase of $11.00 per insured vehicle (a little more than 6%) over the previous year and will be reflected in the cost of auto insurance on policies with an effective or renewal date of July 1, 2013 and later.

The Michigan Catastrophic Claims Association (MCCA), a private non-profit unincorporated association, was created by the state Legislature in 1978. Michigan's unique auto insurance no-fault law provides unlimited lifetime coverage for medical expenses which result from auto accidents. The MCCA reimburses auto no-fault insurance companies for each Personal Injury Protection (PIP) medical claim paid in excess of a set amount. Currently that amount is $500,000. That means that the insurance company pays the entire claim, but is reimbursed by the MCCA for medical costs over $500,000.

A proposal is currently under consideration in the legislature to reduce auto insurance premiums by making significant changes to Michigan's no-fault law.  The proposal includes a $1 million cap on medical expenses in lieu of the current unlimited lifetime medical coverage.  Other components of the proposed reform to Michigan's no-fault auto insurance system include establishing:

  • Cost controls for medical expenses that would prevent health care providers from collecting higher fees from auto insurance comanies than those paid by other health insurance carriers or workers compensation
  • A state authority to fight auto insurance fraud

If passed, it is estimated that these changes will result in an annual premium savings of approximately $125.00 per insured vehicle.

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call us at 800-220-5582 or contact us today for a quote on your insurance!


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Lighthouse Group Main Office in Grand Rapids, MI
Mailing Address | P.O. Box 530009, Livonia, MI 48153

Phone: 734.421.9900 | Toll Free: 800.220.5582 | Fax: 734.421.9911

Also serving these Detroit area communities in Michigan: Livonia, Farmington Hills, Ann Arbor, Southfield, Plymouth, Canton, Westland, Northville, Novi, Dearborn, South Lyon & Walled Lake