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The recent $27 increase in the Michigan Catastrophic
Claims Association (MCCA) assessment has become a subject
of heated discussion, and justifiably so. It is understandable
that motorists do not want to pay any more for their
auto insurance than is necessary. However, there is
a great deal of confusion and misunderstanding about
what the MCCA is and the very purpose of its existence.
The MCCA is a non-profit group established by the state
Legislature to compensate injured motorists for medical
expenses that exceed $325,000. Assessments have risen
as a result of the MCCA's surplus funding being reduced
over the number of years. Does anyone remember the $180
refund check per every vehicle they received from the
MCCA in 1998?
The MCCA has had difficulty setting fees because of
changes in medical costs and uncertainty in predicting
how long injured people take to fully recover.
Michigan is the only state in the nation that requires
unlimited medical coverage for auto insurance policyholders.
That has long been a complaint with insurance companies,
who say mandatory unlimited coverage causes higher rates.
They also contend that it is difficult to predict costs
for severely injured drivers and passengers, some of
whom live many years with incapacitating injuries that
require extensive treatment and rehabilitation.
We believe that both the public and insurance industry
benefit by having an educated and well-informed consumer.
With that thought in mind, it is not our role to be
the ardent defender of the MCCA. Our role as an insurance
agent is to explain to the people we insure why it exists,
its purpose and what people are getting in return for
their assessment-which is the best auto insurance benefit
package in the country.
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