Frankenmuth Insurance would like to make you aware of upcoming changes to the Michigan Catastrophic Claims Association (MCCA) rates. To help address an estimated $3.7 billion deficit, the MCCA announced the assessment amount will vary depending on the level of personal injury protection (PIP) coverage drivers choose.

Effective July 1, 2023, commercial auto MCCA assessment fees will be as follows:

• Those opting for Unlimited PIP benefits will see an increase from $86 to $122 per insured vehicle.
• Drivers choosing lower levels of PIP coverage or no PIP coverage will now pay an MCCA deficit recoupment assessment of $48 per insured vehicle versus no assessment in 2022-2023.
• Historic vehicles will continue to pay 20% of the MCCA assessment.
• Commercial fleet policies will pay 37% of the total PIP premium for Unlimited PIP and 15% of the total PIP premium for anything other than Unlimited PIP.

If you have any questions regarding this change in MCCA assessments, please contact your underwriter or field manager.