No-fault insurance was established in 1973. A unique feature of this legislation was the creation of the Michigan Catastrophic Claims Association.
The MCCA is a private organization that assesses fees to Michigan auto insurers companies to provide, among other things, lifetime coverage to those badly injured. Insurers pass this cost directly to consumers. The actual loss to the insurance carrier is capped at $500,000 per individual.
Currently, no fault provides funds to care for more than 13,000 people who suffered catastrophic injuries. The next person needing Michigan no-fault coverage could be you, your child, your spouse or another cherished family member. Many of you already know this.
Without no-fault insurance, many of these victims and their families would end up bankrupt, on Medicaid and in nursing homes paid for by Michigan taxpayers. No- fault insurance, on the other hand, is paid for by drivers to protect other drivers and their passengers.
The MCCA argues this model is not sustainable, but it refuses to open its books for public review.
Michigan drivers rank 16 in national costs for vehicle insurance coverage for personal injury protection, yet have the best injury coverage in the country.
Without this coverage, their lives would likely be very different. If you want to put a face on persons that have benefited from personal injury protection, simply visit Barss Residential and look around.
I know every insurance premium dollar is precious. If you or a loved one is injured,
however, it is priceless.