Last Updated on February 20, 2026 by The Insurance Pros

What Is the Michigan Catastrophic Claims Association?

Michigan Catastrophic Claims Association (MCCA) is a key part of Michigan’s no-fault auto insurance system. In simple terms, it helps auto insurers handle the cost of extremely large, long-term medical claims from serious crashes.

If you’ve ever wondered why Michigan policies include an “MCCA fee” (or why it changes), this guide explains what it is, how it works, and what Michigan drivers should pay attention to.

If you’ve ever wondered why Michigan policies include an “MCCA fee” (or why it changes), this guide explains what it is, how it works, and what Michigan drivers should pay attention to.

What the MCCA Does (Plain English)

The MCCA reimburses auto insurers for certain catastrophic no-fault medical claims after the insurer pays a required upfront amount called the retention. The goal is to keep the system able to fund very large injury claims without one insurer absorbing the full long-term cost on its own.

Why Michigan Drivers See an “MCCA Assessment” on Premiums

The MCCA sets an annual per-vehicle assessment period that runs from July 1 to June 30. The amount depends on the PIP medical level you choose:

• Unlimited PIP medical: higher assessment
• All other PIP medical levels (including opt-out and capped options): a smaller assessment

MCCA Assessment Amounts (Recent Periods)

Here are the most recent published assessment amounts:

Official source: MCCA Assessment Data.

What Is the “Retention Level,” and Why Does It Matter?

The retention is the amount an insurance company must pay on a catastrophic claim before MCCA reimbursement starts. Think of it as a high deductible insurers absorb first.

• Policies issued or renewed 7/1/2025 through 6/30/2027: $675,000 retention
• Policies issued or renewed 7/1/2023 through 6/30/2025: $635,000 retention

Official source: MCCA Historic and Future Retentions.

Does the MCCA Affect Everyone the Same Way?

Not exactly. The assessment structure is designed so drivers who choose unlimited PIP medical pay a higher amount. Drivers who choose capped PIP options (or eligible opt-out) still contribute, but at a lower rate.

If you are exploring PIP choices, you may also want to read Michigan Medicare PIP Opt-Out Rules.

Common MCCA Confusion (Quick Answers)

Is the MCCA an insurance company?

No. The MCCA is a separate association created to reimburse insurers for certain catastrophic no-fault claims after the retention level is met.

Can I pay the MCCA directly or file a claim with them?

No. Drivers do not pay the MCCA directly, and consumers typically do not file claims with the MCCA. Your auto insurer handles claims administration.

Why do people say the MCCA “fee” changes every year?

The MCCA sets the assessment annually for the July-to-June period, based on projected needs and financial factors. You can verify the current year’s amount on the MCCA assessment table linked above.

How This Connects to Michigan No-Fault Exceptions

The MCCA is part of the no-fault medical framework, but Michigan’s system also includes situations where fault and lawsuits matter. If you want that breakdown, see Exceptions to Michigan No-Fault Insurance.

Official Resources

• MCCA Assessment Data
• MCCA Retention Levels
• Michigan Department of Insurance and Financial Services (DIFS)

Final Takeaway

The MCCA is one reason Michigan’s auto insurance works differently than most states. If you are choosing between PIP options, the assessment amount is one piece of the puzzle, but your medical coverage choice matters more than the fee.

If you want help comparing Michigan coverage options in plain English, you can request a quote, and we’ll review your goals and your PIP choices.

🚘 Get a Free Michigan Auto Insurance Quote

Note: This article is for general informational purposes. For official figures and updates, use the MCCA links above.