Michigan Catastrophic Claims Association Rate Change for 2016
by Scott Reddinger

Michigan Catastrophic Claims Association Rate Change for 2016

The Michigan Catastrophic Claims Association (MCCA) recently put out a press release detailing changes in their rate for 2016. Some of you may be wondering, “What is the Michigan Catastrophic Claims Association?” Better yet, some of you may be wondering, “What does that have to do with me?” I am here to answer both of those questions for you.

Simply put, the MCCA is reinsurance for the insurance companies in the state of Michigan. It has been in place since 1978, and every insurance company in the state that sells auto or motorcycle coverage is required to be a member.  Insurance companies have a need for this in part due to Michigan’s “No Fault” insurance law that states there are unlimited medical benefits for anyone who is catastrophically injured in an automobile/motorcycle accident.  The way it works is that in the event of one of these tragic accidents, an insurance company pays the first $545,000 of medical care. After that, the MCCA steps in and pays going forward.

The association sustains itself through an annual fee that is charged for each auto/motorcycle that is insured in our state. Typically, you will see this on your insurance policy as “MCCA” or “State Assessment”. How it is listed on your policy varies depending on which company you are insured with. This fee is on a sliding scale that is adjusted annually on June 30th, and it is adjusted based on whether the fund has an overage or a shortage.  For example, the fee for 2014/2015 was $186 per vehicle, but for 2015/2016 it went down to $150. Per the press release I mentioned at the beginning of this blog, the fee as of July 1st, 2016 will be $160 per insured vehicle. For further information you can go to www.michigancatastrophic.com, or contact your trusted insurance advisor.

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