The answer from Turbo Tax is not quite complete. It is misinterpreting by mixing two separate coverage lines/charges to the Michigan No-Fault policy. One is the Personal Injury Protection (PIP). Under this line: Although identified by a blogger as split into three categories of benefits, auto policies typically identify two which are the PIP Medical (written as Excess/coordinated with the household medical) or Full as in first dollar), and PIP Wage Loss. Some insurers do not provide a premium breakdown, some do. When not split, utilizing the 80/20 rule (if acceptable by the State) should be a fair division. THIS coverage IS a premium from the insurance company that goes to paying claims for these losses up to a certain amount.
The Second coverage line that was referenced, but mixed in above, is the Michigan Catastrophic Claims Association (MCCA) assessment. This coverage is a state fund that supplements the Auto insurer's policy for catastrophic medical claims the exceed a certain amount, transferring the risk from the insurer, to this fund. Most insurers split this assessment out on their policy, a few include it under PIP. However, it is a standard charge so the agent should be able to break this out each year for their customer. Is this assessment also deductible? That I do not know, but it is a "medical" expense per se'. Answer from Independent Insurance Agent
