MCCA Charges & Auto Policy Terms
I will try to explain this to the best of my ability & try not to make this too long. The MCCA is short for the: Michigan Catastrophic Claims Assessment. This is a "Michigan" state assessed fee. It's function is to provide Medical benefits to those injured due to the result of an auto accident. The fund provides benefits to injured person(s) over & above the Companies threshold. Keep in mind, the benefits under the Michigan No-Fault Law are unlimited in expense, also, keep this question in mind, do our Health policies provide an unlimited Medical expense?! No. This is the biggest reason Michigan touts to have the best No-Fault Law anywhere in the U.S. The MCCA increases in their assessments annually effective July 1st. As such, this year had an increase of $24 per vehicle every 6 months. Companies have come up with Annual Policies to entice discounts, however, the customer is often unaware of the increases in rates during that time frame much less the increase in the State assessed charge. Once the annual policies renew, there have been increases in these charges that are not seen until the policy renews. I try to encourage customers to stay with the semi-annual policies due to rate changes (which usually occur every 6 months) as well as any change in the state assessed charges that transpire over the course of 12 months. This allows the agent to review the policy more often which is a huge benefit to the customer, especially when dealing with an Independent Insurance Agent whom represents a number of Companies which can be shopped. I hope this provides a little bit of an explanation.-Mezz
