MCCA per-vehicle assessment fee to drop next year for Michigan drivers
Data shows no-fault reforms are reining in rising costs, saving Michiganders money
LANSING — Michigan drivers will see a lower Michigan Catastrophic Claims Association (MCCA) per-vehicle assessment fee next year, thanks to strong fiscal management and the ongoing impact of the bipartisan 2019 auto no-fault reforms.
"When we look at the data, we can clearly see the positive effects of the reforms," said Kimberly Bezy, executive director of the MCCA. "At a time when the cost of everything from gas to groceries continues to rise, we are proud to announce this lower fee to keep more money in Michiganders' pockets."
The current and new MCCA per-vehicle assessment fees are listed below. The 2027-28 assessment for drivers selecting unlimited is 66% lower than the pre-reform all-time high of $220, which drivers paid prior to Michigan’s historic auto insurance reform law that went into effect in 2019.
The pure premium reflects the funds needed to cover unlimited lifetime costs of care for people injured in catastrophic accidents anticipated to occur during the coming fiscal year. The pure premium is only paid by those who select unlimited PIP coverage.
The deficit recoupment charge is added when the MCCA’s estimated liabilities, discounted to present value, exceed the MCCA’s assets. The estimated liabilities are the amount of money the MCCA estimates will be needed to cover for the lifetime care of accident victims. By statute, the MCCA is required to charge an additional per-vehicle amount to all drivers to make up the deficit.
"Thanks to the MCCA’s strong financial stability, Michigan is able to offer the most generous auto insurance benefits in the country," Bezy said. "We are proud to continue working to support a stable, sustainable insurance market and make Michigan’s unique auto no-fault coverage more accessible and more affordable."
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The Michigan Catastrophic Claims Association is a private, non-profit association that serves as the state’s reinsurer for auto insurance companies. Since its creation in 1978, the MCCA has been a model of financial stability and success, allowing insurance companies to provide no-fault coverage that pays for medical care of those who have been catastrophically injured in car crashes.