According to the Michigan Catastrophic Claims Association, Michigan is the only state that offers those injured in a car accident unlimited catastrophic personal injury benefits through its no-fault insurance policies. The association works to protect individuals who suffer serious and life-altering injuries. In order to ensure that auto insurers have the money to pay catastrophic claims, the MCCA reimburses auto insurance companies for claims that exceed $545,000. Every auto insurer in Michigan is required to be a member of MCCA. In order to support the fund, each vehicle on the road in Michigan is assessed a fee. The fee covers the lifetime claims of all individuals who may become injured, while making sure that any deficits are also covered.
According to CBS Detroit, insurance fees for catastrophic injury will be rising this year beginning on July 1, going up by $10, to $160 per car. MCCA currently has a $1.3 billion deficit for current claims. The increase in fees will help address this deficit.
Of the claims made, about 16,000 cover catastrophic brain injuries, another 2,000 cover spinal cord injuries, and 17,000 claims covered other serious injuries.
These claims offer necessary care for victims of catastrophic injury. A large chunk of the funds goes to attendant care and residential care for those injured in car accidents. In the aftermath of a serious accident, victims may require around-the-clock assistance. This can quickly become incredibly expensive for families and victims. Attendant and residential care accounts for over 57% of the funds that go to victims of catastrophic injury.
Doctor’s expenses and lab expenses account for another 15% of the total money devoted to catastrophic injury victims. Prescription medications account for another 9% of the fund. The remainder of the money goes to help individuals with home modifications, transportation, and equipment.
The average annual costs of living with spinal cord injury, for instance, is about $28,000. For many families this is almost one individual’s yearly income. Michigan’s Catastrophic Claims Association makes sure that survivors of auto accidents and serious injuries receive the care that they deserve. The insurance ensures that families and victims don’t have to shoulder the burden alone.
If you’ve suffered a catastrophic injury, it is important that your claim is valued properly. Insurance companies sometimes offer victims and families lower initial estimates. This may be the result of conservative formulas that place the lowest possible value on medical expenses, equipment, and long-term care. The good news is that individuals can often successfully challenge an insurance company’s initial offer. In many cases, adjusters have some range to work within. Christopher Trainor & Associates is a personal injury law firm in Detroit that can review the details of your claim, estimate the long-term expenses, and place a value on your claim that ensures that you and your family will be taken care of for the lifetime of your injury and rehabilitation needs.
If you aren’t sure what your claim is worth, or feel that your insurance adjuster is offering you a low recovery, contact a Christopher Trainor & Associates today at www.michiganlegalcenter.com.