The Michigan Catastrophic Claims Association (MCCA), a 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 $460,000. That means that the insurance company pays the entire claim, but is reimbursed by the MCCA for medical costs over $460,000.

 

All auto insurance companies operating in Michigan are assessed to cover the catastrophic medical claims occurring in Michigan.  Those assessments are generally passed on to auto insurance policyholders. The 2009-2010 assessment is $124.89 per vehicle.