MCCA Surcharge Insurance Alert

[Motolaw]

Here is the law on the subject:

No-Fault Act and Off-Road Recreation Vehicles (ORV) Act, read together, demonstrate that although motorcycles designed for use on public highways must be insured, motorcycles designed for off-road recreational purposes are exempt from No-Fault Act. Nelson v. Transamerica Ins. Services (1992) 495 N.W.2d 370, 441 Mich. 508.

FWIW, I'm a lawyer in MI and the this appears to be the current state of the law. You might want to try showing this to Progressive, it is a MI Supreme Court case that is pretty specific about exempting ORV from the requirments of the no-fault statute. However, it is equally specific about including streel legal bikes in the no fault statute.

Mike F.

 

[Smit-Dog]

Thanks Motolaw! Citing case law will certainly help, especially a Supreme Court ruling.

I'll bring this up with the OFIS and MCCA to see if it'll help move things along the right path.

:thumb:

 

[Smit-Dog]

I forwarded all the info to Jack.

Read the last paragraph in the link below (Supreme Court case cited by Motolaw).

http://courtofappeals.mijud.net/Digest/newHTML/9206911.htm

So - Are ORVs really exempt from MCCA, even though they are exempt from the no-fault law?

:think:

 

[Smit-Dog]

Well, I think I've gotten about as far as I can go with the MCCA and the OFIS... :| Same story everyone else has had...

OFIS's Final Response: "We submitted your complaint to Progressive, and Progressive replied that it's just their policy. IF you get injured on a street/road/highway on your dirtbike, and IF you file a claim where MCCA might have to cover benefits, then we need to collect it." FWIW, the OFIS has many complaints against Progressive on this same issue, but they can't do anything about it, other than track complaints. :think:

MCCA's Final Response: "We read the law over and over again, but it's just too vague for us to make any type of statement or decision as to how it should be applied on dirtbikes. Even if we could come up with a definitive answer on this, we don't have any power or authority to do anything about it." :think:

The MCCA suggested I contact my state representatives to resolve the issue. Sounds like the MCCA law needs to be modified so that it is crystal clear as to how it affects dirtbikes for these insurance companies to apply it consistently.

Next: Mr. Smith Goes To Washington..... or Mr. Smith Calls Bike-Line... :flame:

 

[MWEISSEN]

Too bad Bill, I was hoping you would've gotten further than I did. Sounds like you got the same letter I got. Pretty silly isn't it?

 

[Magoo]

Originally posted by Smit-Dog
OFIS's Final Response: "OFIS has many complaints ... on this same issue, but they can't do anything about it, other than track complaints."

A regulatory agency with some teeth... sheesh!
MCCA surcharge is now in the $75+ range, looks like more riders will be voting with their dollars; the difference will become greater!
Sorry your efforts didn't result in some more significant thought and action by our wonderful bureaucratic (and supposedly) pro-consumer government agencies. I'd say it just ends up being more money for the attornies who argue these cases when there is a claim made... too bad the law can't be defined more clearly in this regard, I'd think it would benefit us all if it were!
Magoo

 

[Smit-Dog]

... and starting 7/1/2003, it's a $100 surcharge per insured dirtbike.

Here's a comforting thought... I asked Jack from the MCCA point blank "Does the MCCA know for certain that it has collected all MCCA surcharges that the insurance companies collect?". His answer: "No." The MCCA accepts whatever it receives.

Well, I'm going take all the info I have on this and write my representative on it. They're in office for a reason, and this is reason enough for me...

 

[Magoo]

Since the MCCA is intended to cover licensed motor vehicles, shouldn't the MCCA charge be collected by the Secretary of State when you buy/renew your license plate? Would pretty much clear up the confusion, IMHO.
Magoo

 

[Smit-Dog]

Originally posted by Magoo
Since the MCCA is intended to cover licensed motor vehicles, shouldn't the MCCA charge be collected by the Secretary of State when you buy/renew your license plate?

:thumb:

Logically, it makes sense to me. Instead of insurance companies collecting the fee and passing it on to the MCCA, the SOS department could do it. Not sure what kind of legislation it would take to do this, but I'll bring your idea up in my letter.

 

[fender92883]

I just got my Progressive bill...I almost had a heart attack! My premium is $459!!!! :scream: That's how much it costs to insure my CAR! I do have the MCCA premium on there for $104...what do you recommend I do? My first payment's not due until August 1, so I have a little time.

It sounds like nobody's really getting anywhere with Progressive on this. I don't like that idea...I can't afford that kind of ridiculousness!

 

[Smit-Dog]

Fender - Are you saying that the 12 month insurance premium for your XR 200 is $459? :scream: is right!

I now pay $137 per year with Progressive for fire, theft, and liability on a 2002 KDX 220.

Here's my premium cost and coverage breakdown:

$21 - Bodily Injury & Property Damage Liability: $250,000 Each Person - $500,000 Each Accident

$0 - Property Damage Liability: $100,000 Each Accident

$19 - Uninsured Motorist: $250,000 Each Person - $500,000 Each Accident

$25 - Comprehensive $100 Deductible

$0 - Custom Parts & Equip $1,000: $100 Deductible

$72 - MCCA Surcharge

Aftermarket parts are covered up to $1,000, after a small deductible. The biggest loss I am most likely to take is theft, in which case I'd be out around $4,000.

The typical bad crash may bang up some parts that are easily and fairly inexpensive to replace. The most expensive would probably be bent forks or smashed radiators. I don't have collision coverage. The premium went up quite a bit to add that.

Progressive offers discounts for AMA members, but for insuring in some states like Michigan, the discount is not available.

Progressive also offers discounts if you belong to the Honda Riders Club (HRCA).

www.bike-line.com does not assess the MCCA surcharge the last time I checked. I found that Bike-Line's premium portion is generally higher than Progressive's, but without the MCCA surcharge it ends up being quite a bit lower (especially since 7/1/2003 now that the surcharge is $100 + $1-$4 for administrative fees).

I'm still fighting the good fight through my district representative now, but as the law is now written, insurance companies like Progressive can interpret it to justify collecting the MCCA surcharge.

I'd check with www.bike-line.com for now...

 

[MWEISSEN]

Fender, something sounds wronge even with the surcharge. Our 1996 XR200 was less than $50 for the year.

 

[Smit-Dog]

Just received my auto insurance renewal...

$100.20 for MCCA surcharge
+ 12.77 for insurance agent commission and tax
$112.97 !!!

Agent commission on surcharge!!! =>> :flame:

 

[Magoo]

Originally posted by Smit-Dog
Agent commission on surcharge!!!

So your agent shouldn't be allowed to make 12 bucks?
I can tell you that I spend MORE time discussing/explaining MCCA and the surcharge to my clients than I do about just about any other part of their auto insurance bill!
Like I said... the Secretary of State should collect it! Let THEM explain it to the consumer!
Magoo

 

[Smit-Dog]

Aha! Now I see why that little MCCA is a thorn in your side - it's not the charge, but having to explain it over and over again to all your clients!

FWIW, State Farm did include a little piece of paper with the invoice this time that dealt specifically with what the MCCA is, the increase, what the fund covers, and a link to the State of Michigan guide for more answers. My agent said the same thing though - he is barraged with calls on the MCCA, especially when there is a sizable increase like this.

... But Progressive's commission on the surcharge was $3 last year. :think:

How's the arrowing going? ;)

 

[fender92883]

Yeah, that $459 was quite a shock...

I have no idea why it costs me so much! When I decided to get my bike I took a lot of care to make sure that I could afford everything...it looks like there are some things I need to fix here... :think:

 

[fender92883]

Apparently, full coverage insurance is required by the Credit Union since I took out a loan for the bike. Oh well. And if you think that $459 is bad...you should've seen my quote at bike-line...I think it was somewhere around $800!!! :scream: :scream:

I shed a tear today as I signed the check and sealed the envelope...it goes in the mail tomorrow :( .

 

[70 marlin]

Nate, How much was the broad collision part of the policy? I only keep theft and fire on my three bikes. I added them to my homeowner’s policy "auto owners" and the three bikes are like $80 total for the year. When I was younger and the bank made me carry full coverage on some thing financed car, bike, boat etc. I'd get to the point of about $2500 item value. I would then use the insurance premium money to pay down the lone, then make an extra effort on the payments. And just take care not to wreck it or get it stolen. GET OUT FROM UNDER THAT NOTE AS SOON AS YOU CAN! When you get the katoom. Buy it with saving’s and money from the sale of the 200. Just a suggestion.

 

[fender92883]

Well, I seriously doubt I'll be getting a katoom, it looks a little more green from where I'm standing... ;)

 

[MuddyBuddy]

Understanding that this thread is almost 10 years old, it’s a good one, and unfortunately the issue remains. The MCCA assessment is now at $175.00 per vehicle/bike effective July 1, 2012. We have four bikes through Progressive and next year we will pay $700.00 toward the MCCA surcharge alone (I hope Progressive includes a tube of K-Y jelly with our bill next year). Has anything changed with the passage of PA 240 and insurance companies’ stand on assessing the MCCA surcharge? Getting conflicting information on whether the surcharge must be assessed for a dirt bike that is used primarily off-road more than 90% of the time, even if it is plated and street legal. Have also heard that insurance agents receive a commission for policies written to include the MCCA assessment, but no idea if this is true or not. Thanks!

 

[salgeek]

Bike-Line /Markel offers insurance on most Dual Sport and Dirt Bikes without the MCCA surcharge. Keep in mind once you add a bike like a street bike to the policy it will auto add the MCCA surcharge to the DS or Dirt Bike.

I am NOT an insurance expert.

 

[morgan]

The MCCA assessment is now at $175.00 per vehicle/bike effective July 1, 2012.

My policy I got the other day is charging $180 per bike. I must be getting the special deal. :whoa:

Yeah this sucks ---2 bikes, 6 cars adds up.

 

[MuddyBuddy]

Got a call from our insurance agent today indicating he was able to get Progressive to waive the MCCA assessment on our KTM 300 and 200 - whoo hoo!

 

[Smit-Dog]

Wow... This thread is a blast from the past!

Just got an insurance renewal notice for my truck... MCCA surcharge is now $199.32 per year, per vehicle (effective 7/1/12, per State Farm).

Does it make sense that if I have 2 people over age 16 in the household that I should pay the MCCA 4x? (two personal vehicles, RV, and street-legal dirt bike).

 

[BSWIFT]

Happy Birthday Smit-Dog!