If such a thing exists as a good place to get injured in an automobile accident, Michigan is it. Michigan has the best medical coverage in the United States when it comes to automobile accidents. Every insured driver in Michigan pays the Michigan catastrophic claims association fee, commonly referred to as the MCCA fee. Many residents do not know what the MCCA fee is or what it covers.
Michigan drivers often look over their policy to notice a large chunk of their insurance premium going towards the MCCA fee. In Michigan medical coverage for someone injured in an automobile accident is unlimited. No cap, endless medical coverage regardless of the expense. For people severely injured it includes all rehab, at home care, and outfitting their home with handicap accessibility. As you can imagine, the cost can be astronomical especially if someone experiences irreparable damage at a young age.
Michigan Catastrophic Claim Guidelines
- All medical claims are paid through your own auto insurance policy
- Car insurance carriers are responsible for the first $500,000 in medical expenses
- The MCCA pays anything above and beyond the $500,000 threshold
- Effective July 2013 the MCCA fee is $186 per vehicle per year
- MCCA fee applies to both automobiles and motorcycles
Many insurance companies separate out the charge the MCCA applies to Michigan drivers. It is common for declaration pages to total up the cost actually charged by your insurance carrier then add the MCCA fee in separately. Particularly when you have multiple vehicles on the policy, the MCCA fee can be extremely expensive.Example:
Imagine you have a family of four drivers and insure five vehicles annually. Your six month MCCA fee would total $465 bringing your annual amount to a whopping $930. All the money goes directly into a fund which covers catastrophic automobile injuries. Michigan is the only state in the US to have a mandatory unlimited medical coverage for automobile accidents.
Aside from the high cost, the MCCA does have benefits. Crash survivors and their family’s benefit greatly from the unlimited medical coverage provided by the MCCA. A major auto accident can not only cripple a family physically and emotionally but also financially. If you are caught in this situation, Michigan’s auto laws can make a huge difference in your way of life.
Controversy Surrounding Michigan’s Unlimited Medical Coverage
As with most government programs controversy almost always follows. The chances of being in a life altering car accident are minimal for most drivers. Nobody likes to be forced to pay for something they will never need. True thousands of people have benefited from the unlimited medical coverage in Michigan over the years, however millions of people have been paying for it. Being the only state with the law also draws a lot of criticism.
State representatives are trying to rework the law so Michigan residents can select the amount of coverage they purchase verses the mandatory unlimited coverage required right now. Putting a limit on medical coverage could save Michigan drivers a lot of money.
Does the MCCA Fee Change between Carriers?
If you are new to Michigan or giving your Michigan insurance a closer look, don’t be surprised to see the MCCA fee listed on each vehicle. It doesn’t matter which insurance carrier you choose, the state mandates cost. However, insurance carriers do often charge statutory fees to cover the cost of handling the transaction of paying the MCCA. The statutory fee can range from two dollars possibly up to ten dollars per vehicle. When comparing quotes of insurance carriers in Michigan, it is best to take a look at the overall cost and not worry about who is charging a statutory fee.