Last Updated on June 18, 2025 by The Insurance Pros

Michigan Catastrophic Claims Association Explained: 2025 Updates

Realistic photo featuring a Michigan map outline, American flag background, and insurance paperwork—representing the Michigan Catastrophic Claims Association.The Michigan Catastrophic Claims Association (MCCA) provides a unique safety net under Michigan’s no-fault auto law. It reimburses insurers for medical costs exceeding a set threshold. Here’s what every driver needs to know for 2025.

⏳ What is MCCA?

Created by the state legislature in 1978, the MCCA is a private nonprofit that functions like an insurer of insurers. Michigan is the only state that offers unlimited lifetime medical coverage through its no-fault system. The MCCA reimburses insurers once PIP medical expenses exceed the retention level, currently set at $635,000 until June 30, 2025.

💰 2025 MCCA Assessment Fees

Drivers help fund the MCCA through a yearly per-vehicle assessment, passed along in auto premiums:

  • $90 for unlimited PIP coverage (pure premium $70 + $20 deficit recoupment)
  • $20 for all other PIP coverage levels (deficit recoupment only)

In 2024–25, these fees helped address a $2 billion deficit and support future catastrophic claims. New data shows that starting July 1, 2025, insurers will retain an additional $40,000 per claim before the MCCA begins reimbursement, better protecting the fund.

📊 MCCA’s Financial Health

As of December 31, 2023, MCCA’s assets stood at approximately $21.6 billion, with liabilities near $23.7 billion, a $2.1 billion shortfall (91% funded).

Over its history, MCCA has handled more than 48,000 catastrophic claims, paying out over $23 billion since 1978. In 2023 alone, it covered $1.26 billion in PIP medical benefits.

🏍️ Exceptions & Special Cases

Some vehicles pay reduced assessments:

  • Historic vehicles: Pay just 20% of the standard rate (~$18 per year)
  • Motorcycles: Pay the same $90 (if unlimited) or $20 (other levels)

However, since no-fault PIP doesn’t cover motorcycles, these fees solely contribute to meeting general fund obligations. 👉 Click the link to see the option of purchasing additional medical coverage under a motorcycle insurance policy in Michigan.

⚖️ Why It Matters to You

Without MCCA, vehicle owners would either

  • Face catastrophic medical bills, or
  • Try to sue at-fault drivers, or
  • Rely on private health insurance, or
  • Go without critical care.

🔎 Want More Info?

The Insurance Information Institute offers a helpful overview of how no-fault systems work and how catastrophic claims are handled nationally. Learn more here.

📣 Final Takeaway & Action Steps

Michigan’s unique no-fault system provides lifelong medical coverage—but it costs more than in other states. If you choose unlimited PIP coverage—or if the fund has a deficit—you’ll pay a yearly assessment. To understand your options, talk to an agent about choosing the right PIP level and how much your total annual premium will be.

👉 Get a free Michigan auto insurance quote with MCCA included.