Michigan Auto Insurance – MCCA Charge Increases 6.3% Effective July 1, 2017

Bad news for Michigan residents, starting on July 1, the assessment Michiganders pay to the Michigan Catastrophic Claims Association for unlimited injury coverage will rise from $160 to $170.  This is a 6.3% increase over last year.  (See below for historical MCCA assessments)

Michigan’s system is unique in that it provides for unlimited, lifetime medical auto insurance benefits for catastrophic claims, and the fee covers benefits that exceed $550,000 per claim, the MCCA said.  The MCCA said it paid out $1.1 billion — more than $154 per insured car— in 2016 for claim costs resulting from catastrophic injuries.  According to a press release from the MCCA, the $10 increase is because the estimated cost to pay existing claims increased. Of the $160, $144.33 covers anticipated new claims, $26.27 addresses an estimated deficit related to existing claims and $0.40 covers administrative expenses.

The Coalition Protecting Auto No-Fault has waged a lengthy legal battle against the MCCA over access to the methods and calculations the MCCA uses to set its annual fee.  In August, the Michigan Court of Appeals ruled that the MCCA is not subject to Michigan’s Freedom of Information Act.  The MCCA, whose board is dominated by insurance companies, says it releases adequate information about the rate-setting process.

See a full history of the assessment fees here.

MCCA Historical Data: