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Do I Have to Pay the MCCA Fee?

Looking through your car insurance policy, you might come across the MCCA fee and wonder whether you actually need to pay it. The MCCA fee is a mandatory part of Michigan’s no fault insurance policies. So, yes you will need to pay it in order to drive your car legally in Michigan. The money goes directly to the state of Michigan which puts it into a fund to cover catastrophic auto accident injuries. Michigan is the only state which requires unlimited medical coverage on all auto policies.

3 Ways to Not Pay the MCCA Fee

  • Have your vehicle in storage meaning the only coverage listed on the vehicle is comprehensive.
  • Purchase a non-owners car insurance policy. A non-owners policy is for when you do not own a vehicle. The MCCA fee is not charged with a non-owners car insurance policy.
  • Move out of Michigan (other states do not pay the MCCA fee)

All other auto policies in Michigan will automatically be charged the MCCA fee. As of July 1st 2014, the MCCA fee is $75 every six months per insured vehicle. This is the first year in several years there was not an increase. Most insurance carriers list the MCCA fee separately because it is a state fee not an insurance company fee.

Why is the MCCA Fee so Expensive?

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  1. What if I purchase insurance from an out of state company? How do I pay the mcca fee?

    • Good question Janet. If you are a Michigan resident, you will need to purchase a Michigan car insurance policy. If you are temporarily still using out of state insurance, Michigan rules will apply in a Michigan accident. You will automatically qualify for unlimited medical without actually paying the fee. Read the last paragraph of this Michigan Government document. Hope this helps!

  2. something I would like to add here…. I sell classic car insurance in Michigan with 3 different classic car insurance companies….

    Something a lot of people are not aware of is that for older vehicles that qualify for historical tags, getting those tags will save you almost $150 per year in classic car insurance.

    That is because vehicles with historical tags only have to pay 20% of the MCCA fee. From my experience of talking to people with classic cars, very few of them are aware of this.

  3. Clark Griswald

    Now what if all of my vehicles are owned and titled in the name of a S-Corporation that I have control of? Who sells “non-owner vehicle insurance” in Michigan? Then could I get away from paying that ridiculous fee?

    • Commercial vehicles need to be insured too. A business auto policy in Michigan will charge a MCCA fee the same as a personal policy. As a driver of the vehicles you would need to be listed as such. A non-owner’s policy is most easily obtained from the carrier in which you cancel your traditional auto policy, but I think in this case you would just be listed on the business auto policy.

  4. Philip Johnson

    I recently started a policy with Esurance but canceled my policy after only 2 weeks. They said they could not refund me any of the Michigan Fees. Is there any way that I can recoup some of these fees?

    • Wow, this is a tough one. Nobody wants to pay for something they are not going to use. I’m assuming they probably have it written in their fine print, no refund on MI fees. My only thought is maybe they might give you the refund if you show them you purchased another policy through another carrier at the time of cancellation. If you just cancelled out-right without a replacement policy, there may not be any hope. I hope this helps you get your money back!

      Insurance carriers put these stipulations on policies to cut back on people purchasing a policy just to renew their plates.

  5. If the MCCA is is $93 every 6 months, is it legal for my insurer to charge me $105.92? This is what shows up on my last renewal from January 2014 under a line item for “Catastrophic Claims Premium”

    • Hi Tony, actually it is not uncommon for insurance companies to charge a processing fee for handling paying the state. As far as I know, there is not a way to pay the state directly. Not all insurance companies charge a processing fee. It is most definitely frustrating to pay additional fees. I think in this case your best bet is to compare overall cost of insurance when comparing insurance companies and not whether or not they are charging a processing fee.

  6. i just had my car put into my own name…& got my own insurance. ($119.00 per mth)
    HOWEVER….my insurance company is NOT charging the MCCA fee. Why do some companies charge and others do not ????? esp. if it’s mandated. (the only ”extra” i pay is $50 PER YEAR for roadside assistance,etc. //// i live in MI & my insur. comp. is in MI.

    • I would have to see your declaration page to see for myself. If you pay your car insurance monthly, it is most likely the MCCA fee divided into your monthly payments. Ask your insurance agent about what your policy covers medical wise. At this point in time, I do not believe the MCCA fee is something you can opt out of, but I guess there is a first time for everything.

  7. Emily,
    I’m not sure if you can answer this question, but here it goes. As you stated above the MCCA fee is mandatory for Michigan insurance and goes directly to the state of Michigan. Then WHO controls this Fund, and what is being spent out of it? Are they the same department that determines what a catastrophic auto accident injury is? Is their a yearly statement available that show’s how much money was taken in, and how much money went out? If I have to pay for this I would think these thing are available .


  8. I own/insure 5 vehicles but can only drive one at a time. Is there a way to avoid paying MCCA on all of them at the same time? Shouldn’t this be per driver, instead of per vehicle?

    • Wow, paying the MCCA fee on 5 vehicles really adds up Derek! You are not alone in looking for ways to save. I have seen people take vehicles on and off of their policy very frequently to reduce cost. I wouldn’t highly recommend it though because mistakes can be made with frequent changes possibly leaving you without coverage when you need it most.

      The MCCA fee is always per vehicle not per driver. I’m guessing it is because the MCCA covers all passengers including unlicensed drivers and minors. Everyone in the vehicle needs to be covered not just the licensed drivers.

      Putting a vehicle in storage, aka comprehensive coverage only, will stop the MCCA fee from being charged. Not very helpful though if you drive all of your vehicles frequently.

  9. I am currently trying to help my girlfriend insure through Esurance. If the MCCA fee is only charged every six months, why are they making me pay that fee every month?

    • Thanks for the question David. The MCCA fee is $93 per six months not including any possible handling fees. I’m not sure how Esurance handles the billing of the fee. I’m guessing they would divide the fee equally between the payment plan you select. However, it is possible they want to collect it all in the first payment. Either way, you definitely should not be paying $93 a month solely for the MCCA fee! If you are still not sure, I would ask a representative before making a purchase. Thanks for checking with me!

  10. Can I get a Michigan auto insurance policy without formally changing my residency policy? I am only going to be employed there for 1 year – and would rather not completely change my residence (leaving my residency to the state my parent’s live in). If I don’t formally become a MI resident, do I still need the MI policy?

    • Your car insurance should remain with the state you permanently reside. If you are not changing your driver’s license or needing to get Michigan plates on your vehicle, you would keep your current policy.

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