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Sunday, 08 July 2012 19:27

Michigan Drivers to See Fee Increase

Beginning July 1, drivers in Michigan will start paying a little more to support the state entity funding the no-fault coverage system there.

The Michigan Catastrophic Claims Association (MCCA) oversees the fund that reimburses insurers for claims exceeding $500,000. Claims in the state can run relatively higher than most states because of no-fault laws there that allow policyholders lifetime medical coverage for crash-related expenses, a one-of-a-kind system used by no other state in the U.S.

The MCCA fee is charged per-vehicle to insurers, but policyholders generally pay for that in the form of higher premiums.

The MCCA fee will increase $30, from $145 to $175. It was $143 in 2010, $125 in 2009, and $104 in 2008

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