MI Drivers Will Get $400-Per-Vehicle Refund

MICHIGAN — Governor Gretchen Whitmer announced Tuesday $3 billion in refunds for Michigan drivers from the Michigan Catastrophic Claims Association.

The refunds will amount to $400 per vehicle and the MCAA will begin processing them immediately, with checks expecting to arrive in the second quarter of 2022.

"These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver," Whitmer. "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."

Whitmer previously called on the MCAA to refund billions to Michigan drivers because of the 2019 auto legislation Whitmer signed into law, which gave drivers a choice of their personal injury protection coverage and guaranteed Michigan drivers lower rates for eight years.

The MCAA voted unanimously to issue the refunds from its $5 billion surplus, the news release said.

The association then submitted its refund plan with more details to the Department of Insurance and Financial Services, in which it said money will go to every Michiganian with an auto insurance policy in force as of 11:59 p.m. on Oct. 31, the news release said.

The refunds will be turned over from the MCCA to Michigan insurance companies by March 9, 2022. So eligible consumers do not need to take action in order to receive a refund, as the insurers will be responsible for issuing checks to eligible policyholders, the news release said.

The Department of Insurance and Financial Services will direct insurers to quickly issue the refund checks to consumers. There will be a deadline of 60 days after the transfer of funds, the news release said.