MCCA Announces Increase in Assessment Fee, Yet Refers to ‘Saving Drivers Money’

LANSING, Mich.--(Oct. 8, 2025)--The Michigan Catastrophic Claims Association (MCCA), which all Michigan drivers pay into, today announced that it will be increasing its assessment on drivers who purchase unlimited personal injury protection (PIP) benefits beginning in July 2026.

The MCCA, a quasi-public insurance program run by the auto insurance industry, announced that drivers who choose unlimited PIP benefits will see a $2 increase in 2026 and also announced that drivers who purchase limited plans—which won’t cover their costs should they get a serious injury—will see a $4 decrease. Their press release claimed that “data shows reforms are reining in rising costs, saving drivers money.”

This announcement comes on the heels of a recent story in Michigan Public which reported that Michigan drivers have paid a total of $2.5 billion more for car insurance since 2022.

“This is not the success story they're trying to sell. This is a broken promise to every Michigan driver,” said CPAN President Margaret Kroese. "The MCCA wants Michigan drivers to celebrate saving $4 while insurance premiums overall have increased by 40 percent since 2022 and their families have lost access to the care they need to recover from a crash.”  

Despite claims from insurance companies, which blame crash survivors and the care they receive for high auto insurance costs, the true driver of rising premiums has been comprehensive and collision coverage, which have skyrocketed in Michigan by 36 percent and 24 percent respectively, according to the most recent data from the National Association of Insurance Commissioners.

Kroese added that drivers who select a level of PIP benefits less than unlimited are effectively being taxed for nothing, because they cannot access coverage provided by the MCCA.

“PIP was never the problem,” Kroese said. “It has always been the insurance industry’s drive to maximize their profits and the lack of meaningful cost control regulations to protect consumers. Michigan’s leaders have the power to do more and balance the system that drivers are mandated to buy into. They need to take action.”