How The MCAA Assessment Is Determined


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The MCCA assessment is done annually by the Michigan Catastrophic Claims Association, an organization designed to provide lifetime payments for those injured in car accidents. In order to efficiently make an assessment, the MCCA performs a careful analysis of the funding needed to cover the life long claims of individuals who were injured catastrophically in a car accident within that year.

Understanding how the MCAA Assessment is Determined

The initial analysis covers all investment returns, changes to coverages and medical cost inflation.  The end result discloses how much funding is needed to provide adequate payment for lifelong car accident claims.  This amount also sets the stage for the amount (or fee) needed to be paid per vehicle covered by a Michigan-based, no fault insurance company.  As of 2010, there are at least 10,000 open MCCA claims that are considered eligible for lifelong or lifetime payments from the MCCA fund.

  • The MCCA bases its assessments off of the notion that there will usually be 1,400 insureds that will be catastrophically injured in car accidents each year. 
  • This hypothesis helps the MCCA take the guesswork out of the math when trying to assess the fee that Michigan-based, no fault insureds will have to pay for that particular year. 
  • The figure is subject to inflation costs of products, estimates of costs for services and care, and costs of recovery and rehabilitation services available for injured people throughout the duration of their lives.  Hence the term “lifetime claims”.

It is a good idea to research as the MCCA if you are currently covered by a no fault, Michigan based insurance company.  Understanding the MCAA assessment is important to know how much of the fee that you will need to pay to the MCCA courtesy of your insurance company. 

Understanding the verbiage used by the MCCA is important as well.  For example, the word “assessment” as relative to the MCCA indicates the amount of money that you will need to pay as a premium.  This assessment is your contribution to the assessment pool for money that will cover medical costs of catastrophically injured people.  If you are having a hard time understanding or making sense of it all then you might want to first call and find out if your insurance company is underwritten by the MCCA.

Getting Help

Another option for you is to sit down and consult with an auto accident attorney who is highly familiar with MCCA and the laws or policies governing the organization.  The lawyer will better be able to help you understand how MCCA works and how it is beneficial to you as a Michigan-based driver.

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