Issues To Know Regarding The Michigan Catastrophic Claims Association


Related Ads

The Michigan Catastrophic Claims Association is a novel idea created by the state of Michigan to help cover the injuries of individuals that have been involved in catastrophic car accidents with costs that would well exceed the amount payable by an insurance policy over the lifetime of the individual.  The MCCA has been in operation since 1978, and covers any resident of Michigan who is injured in a catastrophic automobile accident by reimbursing their insurance company for the amount of any claims that exceed a predetermined dollar amount.  There are some important facts to know about the MCCA and how it benefits you, as well as how it affects you as a Michigan driver seeking automobile insurance.

Understanding the Michigan Catastrophic Claims Association

  • If you are a Michigan driver, you must have automobile insurance. 
  • Your insurance must be issued by a company that is registered with and pays an annual fee into the MCCA. 
  • In addition, every policy that is written in the state of Michigan has an annual assessment made to it.  This assessment is determined by the MCCA and is equal to the amount of money required to cover everyone who is likely to be injured in a catastrophic automobile accident in the state of Michigan during that year, for the rest of their lives. 
  • The current assessment as of 2010 is $125.89 per car, which means that you will pay this out of pocket and the insurance company will pay their portion to the MCCA.

How Claims are Made

Another issue that you should be aware of regarding the MCCA is how they pay the claims that are made to them. 

  • The MCCA determines the amount of money that each claim must be covered for by insurance – as of 2010, this amount is $450,000 in bodily injury. 
  • Any amount of insurance liability in excess of $450,000 is paid out by the insurance company that wrote the claim in the state of Michigan, after which time the insurance company will have to make a claim with the MCCA to be reimbursed for the additional amount over and above the $450,000. 

By assessing these fees and working with insurance companies, the Michigan Catastrophic Claims Association is able to create an extra layer of coverage for individuals who drive in the state of Michigan, and who insure their cars there.  In doing so, they ensure that everyone who is injured in a catastrophic auto accident in Michigan will have their needs met for life as a result of the MCCA.

Getting Help

If you have suffered catastrophic car accident injuries, you need to get the help of a qualified lawyer. Your attorney can help you to understand how your settlement will be paid and will assist you in getting the funds you need to take proper care of yourself after the accident.

NOLODRUPAL-web1:DRU1.6.12.2.20161011.41205