Every insured driver in Michigan pays an annual fee each year, which is referred to as the MCCA fee. Many state vehicle owners don’t know what the fee is or what it covers. Michigan drivers often look over their policy and notice a large chunk of their insurance premium going toward the MCCA fee.
Last year, the MCAA fee was $175 per vehicle.
In Michigan, medical coverage for someone injured in an automobile accident is unlimited — no cap, and endless medical coverage regardless of the expense.
For people severely injured, this includes all rehab, at-home care and outfitting their home for handicap accessibility. The cost can be astronomical, especially if someone experiences irreparable damage at a young age.
Insurance companies are responsible for the first $500,000 in medical expenses and the MCAA pays anything above that amount.
Aside from the high cost, the MCCA does have benefits.
Crash survivors and their families benefit greatly from the unlimited medical coverage provided by the association. A major auto accident cannot only cripple a family physically and emotionally, but also financially. If you are caught in this situation, our state’s auto law can make a huge difference in your way of life.
As with most government programs, controversy almost always follows. The chances of being in a life-altering car crash are minimal for most drivers.
Nobody likes to be forced to pay for something they will never need. Thousands of people have benefited from the unlimited medical coverage in Michigan over the years; however, millions of people have been paying for it. Being the only state with the law also draws a lot of criticism.
State representatives are trying to rework the law so Michigan residents can select the amount of coverage they purchase versus the mandatory unlimited coverage required right now. Putting a limit on medical coverage could save Michigan drivers a lot of money.
For starters, our elected officials want to take a look at the association's books. Judge Clinton Canady III ruled recently that the books should be opened under the state's Freedom of Information Act.
But guess what? The MCAA — composed of insurance executives and no public members — has decided to appeal the decision.
We’re not saying whether the MCAA is a good or bad idea, but it surely needs to be reviewed. And the association shouldn’t stand in the way.
The public has a right to know what’s going on inside their walls — especially when the fee is high, often increased and is paid by us.
Fee-setting bodies operate much more fairly in the light than in the dark.
Our Views reflects the majority opinion of the members of the Grand Haven Tribune editorial board: Kevin Hook, Cheryl Welch, Matt DeYoung and Fred VandenBrand. What do you think? E-mail us a letter to the editor to firstname.lastname@example.org or log-in to our website and leave a comment below.