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Our Michigan’s Catastrophic Claim Association (MCCA) fund is what makes the “Unlimited” option for our auto policy’s Personal Injury Protection (PIP) possible.  The MCCA fund is part of a government program that works with our insurance companies to provide a PIP benefit that is WAY better than any other state’s PIP. 

The challenge is figuring out how much money we need in the MCCA fund each year.  Forecasting and funding for the future need of an unlimited amount of money is very complex, especially when politics are involved.  Last fall, the MCCA released an assessment of its fund for the period of July 1, 2023 to June 30, 2024.  Where the MCCA fund recently had a projected surplus that funded a $400-per-vehicle refund, the assessment now states that the fund has an estimated $3.7 billion dollar deficit (due largely to a decision in a court case pertaining to how PIP claims prior to No-Fault Reform would be paid, and less-then-stellar stock market returns).  This means insured Michigan drivers will need to make up the difference.

Starting July 1, as our auto policies renew, the MCCA charge will look different.  Currently those of us with Unlimited PIP pay $86/vehicle per year.  The good news is that this fee drops to $76/vehicle per year.  However, there is now a new fee that everyone will be paying called a Deficit Recoupment Fee of $48/vehicle per year.  That means your MCCA fees for Unlimited PIP will total $124/vehicle per year.  Even those of you without Unlimited PIP will be paying the $48/vehicle per year.

These MCCA fees work the same for all of us.  They don’t change based on your insurance company, your insurance agent, your driving record, your credit score, the kind of car you drive, your claims history, how clever you are after two beers, or who you voted for

Still, since No-Fault Reform, there are options for PIP other than Unlimited to consider.  Also, if you have another health plan that covers auto accident medical costs, you can coordinate it with PIP to save money.  In my opinion, anyone with children should have Unlimited PIP.  Contact your insurance agent for a good conversation about how you want PIP to protect your finances and quality of life if you’re injured in an auto accident!