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Check your MCCA fee Michigan drivers!

Friday, April 06, 2007

Every person who insures an auto in Michigan has to pay an MCCA fee which is basically medical insurance coverage on anything over your current auto insurance limits.

Well the insurance company leeches that provide coverage are over charging this rate on a regular basis. Please call your insurance agency and ask what they are charging for the MCCA fee.

From news WXYZ in Detroit. Investigations found out what these companies are charging (should be $141.70) :

State Farm: $160.66

Allstate: 144.30

Titan (owned by Nationwide): $200

AIG $166

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The Current MCCA

From the MCCA website :

What is the current MCCA Assessment?
In March of 2007, the MCCA Board approved an annual assessment of $123.15 per vehicle (a decrease of $14.18 from the previous year). This assessment is incorporated in the rates policyholders pay for their auto insurance. The MCCA paid out $668 million in 2006 (up from $615 million in 2005) for claims resulting from catastrophic injuries motorists suffered in automobile accidents.

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The Future

Please take a look at this .pdf file straight from the MCCA Fund.

In 1978-1980 the fee was $20.68 for the first 30 months.

In 2005-2007 (24 months) the fee was $279.03

Inflation on $20.68 in 1978 to 2006 would be equal to $66.43

So in 29 years we have gained 212.60 in additional fees. What's happening is the coverage is snowballing on injured drivers who are covered for their entire life. I understand that and I expected an increase over the years but I myself not being college educated can only see this being a big problem in the future.

Don't forget this is a FUND which means the money is being invested until a claim is sent in and needs to get paid. Actually now that I think about it you could probably throw the inflation argument out the window seeing as it is a fund that is vested it should be keeping up with inflation. So the fee has gone up $258.35 ? Anyone smart, is this right?

People eventually die and coverage stops but with rising medical cost and average life span going up when is this fee going to level off?

Your guess is as good as mine.


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  1. Anonymous Anonymous | 4:37 PM |  

    Back in 1998 a refund was issue on the mcca fee $180.00 per vehicle insured in 3/98.

    I know some people only paid for the first time $6.00 and recevied $180.00 not bad return and you had a large number of people leave the road way because of age paid in for 20 years plus and recevied a big 0.....

    Law makes us pay so law should make sure the monies are handled correct and fair. In this case I don't Think so....

    Yes from Insurance company to company some paid agents to collect said fee, agents do have a cost to collect fee and then you had companies that paid nothing.

    With all the uninsured the fee is very unfair to the payee.

    We need change now and we should demand it...

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