What the Michigan Catastrophic Claims Association does

The Michigan Catastrophic Claims Association (MCCA) is a state-run fund that covers medical expenses for people injured in car accidents in Michigan. It exists because Michigan has a no-fault auto insurance system — meaning your own insurance pays your medical bills regardless of who caused the crash. The MCCA steps in when those medical bills exceed what a standard auto insurance policy will pay.

Every driver in Michigan pays into this fund through a surcharge on their auto insurance premium. When someone's accident-related medical costs climb above the threshold their insurance covers, the MCCA picks up the remaining bills. This protects both injured people and insurance companies from catastrophic expenses that would otherwise bankrupt either side.

Key Takeaways

  • The MCCA covers medical expenses from car accidents that exceed your auto insurance policy's limit, which is currently $275,000 in Michigan.
  • Every Michigan driver pays a monthly surcharge (currently around $23 per vehicle) that funds the MCCA, whether or not they ever file a claim.
  • Your auto insurance company handles MCCA claims on your behalf — you do not contact the MCCA directly to report an accident.
  • The MCCA only covers medical treatment related to the accident; it does not cover lost wages, pain and suffering, or property damage.
  • Claims are paid directly to medical providers, not to you, and the process typically takes several months after your insurance company submits the claim.

How the MCCA surcharge appears on your insurance bill

The MCCA surcharge is a separate line item on your monthly or quarterly auto insurance bill. It is not part of your base premium — it is a dedicated fee that goes directly into the state fund. The amount changes annually based on how much money the MCCA has paid out and how much it expects to pay in the coming year. In recent years, the surcharge has ranged from about $20 to $30 per vehicle per month, though this varies.

You pay this surcharge for every vehicle you insure in Michigan, even if you have an excellent driving record or have never been in an accident. The surcharge is mandatory — it is not optional coverage you can decline. Your insurance company collects it and remits it to the MCCA on a schedule set by the state.

When the MCCA covers your medical bills

The MCCA only covers medical expenses that exceed your auto insurance policy's medical benefits limit. In Michigan, the standard limit is $275,000, though you can purchase higher limits if you choose. Once your medical bills from the accident reach that threshold, your insurance company stops paying and submits the excess to the MCCA.

The MCCA covers only medical treatment — hospital stays, surgery, rehabilitation, medications, medical equipment, and ongoing care related to the accident injury. It does not cover lost wages, pain and suffering, property damage to your vehicle, or any non-medical expenses. If you need a settlement for pain and suffering or lost income, you would pursue that through a separate lawsuit or settlement negotiation, not through the MCCA.

The clock on MCCA coverage does not start when ready after your accident. Your insurance company must first exhaust your policy limit, which can take months or years depending on the severity of your injuries and the pace of treatment. Only after your insurer has paid the full $275,000 (or your chosen limit) does the MCCA begin paying.

How to file an MCCA claim

You do not file directly with the MCCA. Instead, your auto insurance company manages the entire process. When you report your accident to your insurer, tell them about all your injuries and medical treatment. Your insurance company will track your medical bills as they arrive and will notify you when your expenses are approaching your policy limit.

Once your bills exceed your limit, your insurance company submits the excess to the MCCA on your behalf. They will send you a notice explaining that your claim has been transferred to the MCCA and what happens next. At that point, your medical providers bill the MCCA directly for services rendered after your insurance limit was exhausted.

Keep copies of all medical bills, treatment records, and correspondence from your insurance company. If there is a dispute about whether a treatment is related to the accident or whether a bill was properly submitted, you may need to provide documentation to support your claim.

Timeline and payment process

After your insurance company submits your claim to the MCCA, the fund typically takes several months to review and process it. The MCCA must verify that the medical expenses are genuinely related to your accident and that your insurance limit was actually exhausted. During this time, medical providers may continue treating you, and those bills will be held pending MCCA approval.

Once the MCCA approves your claim, it pays medical providers directly. You will not receive a check — the payments go straight to hospitals, doctors, rehabilitation facilities, and other treatment providers. If a provider bills you for services the MCCA has approved, contact your insurance company or the MCCA to resolve the billing error.

The entire process from accident to final MCCA payment can take six months to over a year, depending on how long your treatment continues and how complex your case is. If your injuries require ongoing care, the MCCA will continue paying for approved treatment as long as it is medically necessary and related to the accident.

What happens if you dispute an MCCA decision

If the MCCA denies a claim or refuses to pay for a specific treatment, your insurance company will notify you in writing. The notice will explain the reason for the denial. Common reasons include: the treatment is not related to the accident, the treatment is not medically necessary, or the bill was submitted after a important date.

You have the right to appeal an MCCA decision. The appeal process begins with your insurance company, which can request that the MCCA reconsider. If that does not resolve the issue, you can file a formal appeal with the MCCA or pursue the matter through Michigan's insurance commissioner's office. An attorney who handles auto accident claims can help you navigate a dispute, though you are not required to hire one.

The difference between MCCA coverage and other auto insurance

Michigan's no-fault system is unique. In most states, the person who caused the accident pays for damages through their liability insurance. In Michigan, your own insurance pays your medical bills no matter who was at fault. The MCCA is the safety net that catches expenses your insurance cannot cover.

Your auto insurance policy also includes property damage coverage, which pays to repair or replace your vehicle. The MCCA does not cover vehicle damage — only medical expenses. If you were injured and your car was damaged in the same accident, your property damage coverage handles the car, and your medical benefits (plus the MCCA if needed) handle your injuries.

Frequently Asked Questions

Do I have to pay the MCCA surcharge if I do not drive much?

Yes. The surcharge is mandatory for every registered vehicle in Michigan. It does not matter how often you drive or whether you have ever filed a claim. The surcharge funds the pool that protects all Michigan drivers from catastrophic medical costs.

What if my medical bills are still climbing years after my accident?

The MCCA will continue paying for medical treatment related to your accident as long as the treatment is medically necessary. There is no time limit on MCCA coverage itself, though your insurance company must have already exhausted your policy limit. If you need ongoing care, keep your medical providers informed so they can bill correctly.

Can I choose not to have MCCA coverage?

No. MCCA coverage is automatic and mandatory for all Michigan drivers. You cannot opt out of the surcharge or decline the coverage. However, you can purchase a higher medical benefits limit than the standard $275,000 if you want more protection before MCCA coverage begins.

Who pays if I was hit by an uninsured driver?

Your own auto insurance still pays your medical bills first, up to your policy limit. If your bills exceed that limit, the MCCA covers the excess. Michigan's no-fault system protects you regardless of whether the other driver was insured.

Does the MCCA pay for mental health treatment after an accident?

Yes, if the mental health treatment is medically necessary and directly related to injuries from the accident. Therapy for trauma or anxiety caused by the accident may be covered, but the MCCA must determine that it is a reasonable treatment for your accident-related condition. Your insurance company can tell you whether a specific treatment is likely to be approved.