MI Drivers Could See $400 Refund Checks This Week

MICHIGAN — Michigan's drivers could start receiving their $400 refund checks from insurance companies this week, the governor's office said Monday. Insurance companies can either directly deposit the check or mail it out to eligible policyholders.

Governor Gretchen Whitmer and Michigan Department of Insurance and Financial Services said the Michigan Catastrophic Claims Association will complete the transfer of $3 billion in surplus funds to Michigan’s auto insurers this week.

After the transfer, auto insurance companies will have no later than May 9 to send out the required $400 refund checks per vehicle to eligible Michiganders. Only vehicles that were insured as of Oct. 31, 2021 are eligible to receive a refund. Motorcycles and RV's are also eligible for a refund check.

In addition, the vehicle must have been covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads.

"I called for these refunds because I am committed to lowering costs for Michiganders and putting money back in people’s pockets," Whitmer said. "They are possible because we worked across the aisle to pass bipartisan auto insurance reform, and we will keep working together to grow our economy and build a state where families can thrive."

Last November, Whitmer called on the Michigan Catastrophic Claims Association to refund billions to Michigan drivers after learning the organization showed a surplus of $5 billion, which was a significant increase from its surplus of $2.4 billion at the end of 2020.

Whitmer's request came in correlation to the 2019 auto legislation she signed into law that gave drivers a choice of their personal injury protection coverage. The legislation guaranteed Michigan drivers lower rates for eight years.

After an analysis, the Michigan Catastrophic Claims Association said it could refund $3 billion to policyholders. They then voted unanimously to issue the $400 per-vehicle refund checks.

Eligible consumers who do not receive their refunds by the May 9 deadline should contact their auto insurer or agent, the Michigan Department of Insurance and Financial Services said.