The Michigan Catastrophic Claims Association (MCCA) is lowering an assessment rate paid by insurers that covers unlimited lifetime medical costs for victims injured in auto accidents by 10 percent.

According to the Insurance Institute of Michigan, the state's no-fault auto insurance system provides unlimited medical benefits for motorists injured in auto accidents and is the only state in the country with such generous medical benefits.

The MCCA is a private, non-profit association that deals primarily with the insurance companies, not the general public. The organization was established by the state legislature as a way to spread the costs of those benefits across all Michigan motorists and to reimburse auto insurance companies for injury claims exceeding $400,000. The MCCA assesses all auto insurance companies to cover the costs of those catastrophic claims, which is then reflected in the premiums paid by Michigan policyholders.

According to the Insurance Institute of Michigan, the MCAA paid out $668 million last year, mostly for closed-head injuries, paraplegia, quadriplegia, and burns. Since the fund began in 1978, more than 20,000 claims have been reported, which will cost an estimated $59 billion.

“While it is good news for policyholders that the assessment has declined, the cost to pay for a lifetime of medical care for individuals injured in auto crashes is still expensive,” said Peter Kuhnmuench, executive director of the Insurance Institute of Michigan, in a release.

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