Transportation Law Hub

As Michigan drivers continue to see gas prices spike, the Michigan Catastrophic Claims Association (MCCA) recently announced that the current assessment of $192 per year per vehicle will rise by $28 to $220 per vehicle, effective July 1.

The MCCA fund is used to cover catastrophic claims. When an insurer surpasses the threshold (currently set at $580,000 per claim), the insurer can then turn to the MCCA and seek reimbursement for benefits above and beyond the $580,000 threshold. The threshold is determined by the date of the accident.

Critics have long complained that because the MCCA is not subject to the Michigan Freedom of Information Act, there isn’t enough transparency, preventing the public from confirming or even challenging whether the fees are proportionate to the amount of losses actually paid or likely to be paid.

In light of the increase in the MCCA annual assessment per vehicle, insurers should update their systems and notify their agents of the new changes.