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Why is the MCCA Fee So Expensive?

The MCCA Fee, Michigan Catastrophic Claims Association, is a major expense when it comes to Michigan car insurance. Currently, the MCCA Fee runs $150 per year per insured vehicle. It is a huge annual expense for Michigan residents especially when multiple vehicles are being insured. So what makes the MCCA fee so expensive?

When injury occurs in a Michigan automobile and the cost exceeds $530,000 the MCCA fee kicks in to cover additional costs with no limit. This includes residential and attendant care. If a young person has spinal cord or brain injury, their medical expenses and care will be covered for the remainder of their life. Since 1979 more than 32,600 claims have been filed. In 2012 alone nearly a billion dollars was paid out.

Just over 30,000 claims may not seem like so many over the course of 30 years, but with an unlimited price tag the cost is huge. The cost to Michigan insured drivers will continue to go up as long as there is no cap on pay out. More people will be injured every year and the claims from the past continue to be paid out.

The way I like to look at it is we pay the most, but if you are ever injured, Michigan is the state to be in. Your medical financial expenses will be covered for a lifetime in severe cases. I suppose I’d rather be the one to contribute to the fund without ever using it, verses actually filing a claim. What do you think about Michigan’s unlimited medical fund?


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