What the MCCA does
The Legislature created the MCCA in 1978 through MCL 500.3104. Every insurer writing Michigan no-fault coverage must be a member. When a person with unlimited PIP has a catastrophic injury, the insurer pays every bill, and the MCCA reimburses the insurer for 100% of its loss above the retention. The MCCA is a reinsurance pool. It does not pay injured people or providers directly, and you cannot file a claim with it.
If you are told “the MCCA won’t approve” a service, the obligation to pay is still your insurer’s. Its duty under the policy and the no-fault act does not depend on whether the MCCA reimburses it.
The retention
The retention is the amount the insurer pays on a claim before MCCA reimbursement begins. It is set by the date the policy was issued or renewed and adjusts every odd-numbered year by the lesser of 6% or the change in the Consumer Price Index.
| Policy issued or renewed | Retention per claim |
|---|---|
| July 1, 2025 to June 30, 2027 | $675,000 |
| July 1, 2023 to June 30, 2025 | $635,000 |
| July 1, 2021 to June 30, 2023 | $600,000 |
| July 1, 2019 to June 30, 2021 | $580,000 |
Source: MCL 500.3104(2); MCCA 2026 consumer statement.
The per-vehicle assessment
The MCCA funds itself through an annual assessment on insurers, which insurers pass on to you as a line on your premium. Since the 2019 reform it has two parts: a “pure premium” for expected new catastrophic claims, charged only on unlimited PIP, and a deficit recoupment charge, charged on every vehicle.
| Assessment period | Unlimited PIP | All other PIP choices |
|---|---|---|
| July 1, 2026 to June 30, 2027 | $84 ($65 premium + $19 deficit) | $19 |
| July 1, 2025 to June 30, 2026 | $82 ($59 premium + $23 deficit) | $23 |
The MCCA’s 2026 consumer statement reports an estimated deficit of $1.764 billion as of June 30, 2025, which is why every policyholder pays the recoupment charge. The same statement reports 4,609 open claims as of December 31, 2025.
Limited PIP choices are outside the MCCA
For policies issued or renewed after July 1, 2020, MCL 500.3104(27) says the MCCA has no liability for claims under the $50,000, $250,000 or $500,000 PIP choices. If you chose one of those levels, your PIP medical coverage stops at the limit. Costs above it fall to health insurance, the at-fault driver, or you. See choosing a PIP coverage level.
Why it matters in a catastrophic claim
- Claims above the retention get more scrutiny. The MCCA can review and audit what member insurers pay. Expect requests for records, insurer medical exams and life care plans once a claim approaches the retention.
- Care disputes are still with your insurer. Attendant care, home modifications, vans and residential treatment are claimed from the insurer, and an unreasonable refusal can be sued on with 12% interest and attorney fees under MCL 500.3142 and 3148.
- Refunds go to policyholders. If an actuarial review shows MCCA assets above 120% of liabilities, the director can order a refund, which insurers pass on per vehicle (MCL 500.3104(22), (24)).
The MCCA publishes an annual consumer statement by September 1 each year with its claim counts, costs and financial condition (MCL 500.3104(25)).
For a lifetime injury, the claim needs early attention. See catastrophic injuries, traumatic brain injury and spinal cord injury.
Sources: MCL 500.3104; MCCA 2026 Consumer Statement; MCCA assessment notice for July 1, 2026 to June 30, 2027; MCL 500.3142; MCL 500.3148.
Questions people ask us
How much is the MCCA fee on my auto policy?
For policies issued or renewed from July 1, 2026 through June 30, 2027, the assessment is $84 per vehicle with unlimited PIP and $19 per vehicle for every other PIP choice, including opting out of PIP medical. The $19 is a charge toward the MCCA’s deficit.
Can I file a claim with the MCCA?
No. Injured people deal only with their auto insurer. The MCCA reimburses insurers for what they pay above the retention amount. It does not adjust or pay claims directly to injured people or providers.
Does the MCCA cover me if I chose $250,000 or $500,000 in PIP?
No. For policies issued or renewed after July 1, 2020, the MCCA has no liability on claims under a limited PIP choice. Your coverage ends at the limit you picked, although you still pay the deficit charge.
