MCCA Sets 2020 – 2021 Insurance Company Assessment
For the period July 2, 2020, to June 30, 2021, the Michigan Catastrophic Claims Association (MCCA) has announced their fee assessed for each insured vehicle carrying unlimited/limited Personal Injury Protection (PIP) will drop from $220 down to $100. The reduction in MCCA fees reflects the estimated impact of cost-cutting measures created by our state’s No-Fault Reform announced in June 2019. The reform also marks the availability of PIP choices for insureds other than “unlimited” beginning July 2, 2020. Vehicle owners who are eligible to opt-out of all medical benefits from their auto insurance policy, will not have to pay the MCCA fee assessment at all.
“Making an informed decision on which PIP benefit level to choose will play an important role in our clients’ financial futures and the care they and their families will receive if they are injured in an auto accident,” stated Emil Rummel Agency President and CEO Greg Rummel. “Our team of licensed insurance professionals look forward to assisting our clients in making this important decision.”
Since 1973, Michigan’s no-fault insurance law required all policyholders in Michigan to buy unlimited PIP coverage. Our state’s legislature created the MCCA effective July 1, 1978, to reimburse insurance companies for amounts paid for PIP benefits over an amount deemed “catastrophic” (currently set at $580,000) under the no-fault insurance law. This mandatory PIP coverage has provided unlimited lifetime medical benefits for people injured in motor vehicle accidents and has ensured those who are seriously injured in auto accidents get the care they need. However, the growing costs of these benefits have been reflected in the increasing premiums charged by insurance companies and increasing MCCA fees charged by the state. Most agree that the No-Fault law was due for some revisions and this past summer our governor signed revisions to our state’s no-fault program that has been referred to as “No-Fault Reform”.
Already in effect are changes to our no-fault laws governing who is entitled to PIP benefits on a given policy, and how much the Michigan Assigned Claims Program will provide in PIP benefits for Michiganders injured in an auto accident but aren’t covered by a Michigan auto policy. Please see our other articles and videos on these subjects designed to help you make good decisions about your insurance!
You can read the official statement from the MCCA here: MCCA Press Release