Michigan drivers to receive policy refunds

Gov. Gretchen Whitmer Courtesy state of Michigan

Insured Michigan drivers can expect a $400 refund check in early 2022 from a $5 billion surplus from the Michigan Catastrophic Claims Association (MCCA).

Gov. Gretchen Whitmer and the Department of Insurance and Financial Services (DIFS) said Tuesday, Dec. 7, that the MCCA submitted its refund return plan to the DIFS and will administer $400 per vehicle to Michigan auto insurance policy holders at the governor’s direction. Drivers holding an auto insurance policy prior to 11:59 p.m. on Oct. 31, 2021, are eligible for the refund and do not need to take action to receive their check.

“These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver,” Whitmer said. “Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders. We are working together to put Michigan drivers first, and I am directing DIFS to ensure that the MCCA and Michigan’s auto insurance companies accurately, fairly and promptly issue these refunds.”

A November surplus projection of $5 billion set the refunds in motion when the MCCA determined $3 billion of the funds could be returned to Michigan drivers while continuing to provide care for auto accident survivors. The DIFS said the surplus and refunds are possible, in part, due to the historic bipartisan auto insurance reform signed into law in 2019.

“The governor and I called for these refunds because we recognize that this surplus money belongs to Michigan drivers, and we need to put it back in their pockets,” said Lt. Gov. Garlin Gilchrist II. “These refunds are a major win for all drivers — especially Detroiters — who have paid the highest insurance rates in the nation for decades. There still is work to be done, and Gov. Whitmer and I will continue to take action in the best interest of Michigan drivers.”

Funds will be transferred from the MCCA to auto insurance companies operating in Michigan by March 9, at which point insurers will issue refund checks to their policyholders. The DIFS will direct providers to expedite the process and administer checks to policyholders no later than 60 days after funds are transferred from the MCCA. Additional guidelines and details will be provided to insurance companies in a bulletin that soon will be issued by DIFS.

More information on Michigan’s Department of Insurance and Financial Services is here.

More information outlining the auto insurance reform law is here.

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