Whitmer Calls For $5 Billion In Auto Insurance Refunds

MICHIGAN — Governor Gretchen Whitmer called on the Michigan Catastrophic Claims Association to refund billions to Michigan drivers.

Whitmer said in a Monday letter directed to the executive director of the MCCA Kevin Clinton that its annual statement issued on June 30 showed a surplus of $5 billion, which is a significant increase from its surplus of $2.4 billion at the end of 2020.

The 2019 auto legislation Whitmer signed into law gave drivers a choice of their personal injury protection coverage, which guaranteed Michigan drivers lower rates for eight years.

"The surplus reflects premium overcharges and is partly a reflection of the cost-saving measures implemented in the historic, bipartisan no-fault reform legislation I signed into law in 2019," Whitmer said. "Since then, many Michiganders have experienced financial hardships during the ongoing COVID-19 pandemic. Now is not the time for the MCCA to withhold money owed to Michiganders. I urge you to move swiftly to return the surplus funds to policyholders in the form of lump-sum checks."

"The surplus belongs to Michigan policyholders and should promptly be returned directly to them in full, in the form of refund checks," she added.