The Michigan Catastrophic Claims Association (MCCA) will start refunding $400 per vehicle to Michigan drivers.
Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) announced the MCCA’s move to lower costs for Michigan drivers by delivering the check refunds. Drivers are expected to receive checks in the second quarter of 2022.
"Anybody that has a vehicle that was insured as of 11:59 p.m. on Oct. 31 will be eligible for the refund," said Anita Fox, director of the Michigan Department of Insurance and Financial Services. "By about the second quarter of next year, all policy holders should anticipate receiving those checks."
Fox said all checks should be issued no later than the first week of May 2022.
“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.”
In November, Whitmer called on the MCCA to issue refund checks to drivers from its projected $5 billion surplus, which the MCCA then voted unanimously to issue.
“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,” Lt. Gov. Garlin Gilchrist said. “These refunds are a major win for all drivers—especially Detroiters—who have paid the highest insurance rates in the nation for decades. There is still work to be done, and Gov. Whitmer and I will continue to take action in the best interest of Michigan drivers.”
An analysis by the MCCA determined $3 billion of the surplus could be returned to policyholders while ensuring care for auto accident survivors.
Those eligible do not need to do anything to receive a refund. The surplus funds will be turned over by the MCCA to the insurance companies operating in Michigan by March 9, 2022, and the insurers will be responsible for issuing checks to eligible policyholders.
"The governor was adamant that she did not want to wait when there was such a large and quickly growing surplus that really belongs to Michigan policyholders," Fox said. "It could safely return 3 billion dollars of that surplus while still ensuring continuity of care for accident victims."