Auto Insurance Refunds: Getting Your Money Back In Michigan

Michigan drivers were eligible for a $400 refund per vehicle from auto insurance fees. This was due to a surplus in the Michigan Catastrophic Claims Association (MCCA) fund, which all auto insurers pay into for personal injury protection under the state's auto no-fault system. The refunds were to be issued by May 9, 2022, to all vehicles that were insured as of 11:59 pm on October 31, 2021.

Who is eligible for a refund?

The Michigan Catastrophic Claims Association (MCCA) will issue a refund of $400 per vehicle to Michigan drivers. This refund is applicable to all vehicles that were insured as of 11:59 p.m. on October 31, 2021, and were covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads. This includes motorcycles and RVs, but excludes trailers.

Historic vehicles, which are only charged 20% of the annual MCCA assessment due to their limited allowable use, will receive a refund of $80 per vehicle.

If you had multiple vehicles insured under the same policy, you will receive a refund for each vehicle. For example, if you had two cars insured under the same policy as of the deadline, you will receive a refund of $800.

Fleet vehicles are also eligible for the MCCA refund. The refund amount will depend on how the vehicles are identified in the fleet's auto insurance policy. For vehicles that are individually identified in the policy, such as by VIN or license plate number, a full refund of $400 per vehicle will be given. For policies written on a per-plate basis, such as those used by car dealerships, the refund will be calculated and sent on a per-plate basis. For commercial fleet policies written on a gross-receipts basis or other policies where individual vehicles cannot be identified, the refund will be calculated as 135% of the applicable in-force commercial auto PIP written premium related to those policies.

It is important to note that only vehicles that were insured as of the deadline of 11:59 p.m. on October 31, 2021, will qualify for a refund. If you sold your car or cancelled your insurance policy before this date, you will not be eligible for a refund.

How much will the refund be?

The refund amount will depend on the type of vehicle insured and the number of vehicles insured under the same policy.

The Michigan Catastrophic Claims Association (MCCA) has announced that the refund will be $400 per eligible car or motorcycle. So, if you had insurance policies for two cars as of 11:59 p.m. on October 31, 2021, you will receive a refund of $800.

Historic vehicles are only charged 20% of the annual MCCA assessment due to their limited allowable use. Therefore, drivers will receive a refund of $80 for each historic vehicle they had insured as of 11:59 p.m. on October 31, 2021.

For vehicles that are individually identified in the policy, such as by VIN or license plate number, the full MCCA refund of $400 per vehicle will be given for each vehicle.

For policies that are written on a per-plate basis, such as those used by car dealerships with license plates that are moved from car to car as needed, the MCCA refund of $400 will be calculated and sent on a per-plate basis.

For commercial fleet policies that are written on a gross-receipts basis or for other types of policies where individual vehicles cannot be identified, the refund will be calculated as 135% of the applicable in-force commercial auto PIP written premium related to those policies.

When and how will I get my refund?

The Michigan Catastrophic Claims Association (MCCA) will begin the process of refunding $400 per vehicle to Michigan drivers. The surplus funds will be turned over by the MCCA to insurance companies by March 9, 2022. After that, insurers will be responsible for issuing refund checks or ACH deposits to eligible policyholders.

The Department of Insurance and Financial Services (DIFS) has directed insurers to issue refunds as quickly as possible, but in no event later than May 9, 2022. This means that eligible policyholders should receive their refunds by this date at the latest. If you are eligible for a refund and do not receive your check by the deadline, you can contact your insurance company.

If you have any questions or concerns about the refund process, you can contact the Michigan Department of Insurance and Financial Services for more information. They can be reached at 833-ASK-DIFS (833-275-3437) Monday through Friday from 8 a.m. to 5 p.m. You can also email them at [email protected].

It is important to note that these refunds are only applicable to vehicles that were insured as of 11:59 p.m. on October 31, 2021, and that meet the minimum insurance requirements for operating a vehicle on Michigan roads.

Are motorcycles and RVs eligible for a refund?

Yes, motorcycles and RVs are eligible for a refund of $400 if they meet the minimum insurance requirements for operating on Michigan roads. This includes insurance policies for motorcycles and RVs that meet the minimum insurance requirements outlined in MCL 500.3101 and MCL 500.3103.

The Michigan Catastrophic Claims Association (MCCA) has agreed to refund insured drivers after reporting a surplus of approximately $5 billion. Governor Gretchen Whitmer requested that the surplus be returned to Michigan drivers as soon as possible, and the MCCA voted to support this. The refund is part of bipartisan-passed legislation that was signed in 2019.

The refund applies to all vehicles that were insured as of 11:59 p.m. on October 31, 2021, and the money will be sent to insurance companies by March 9, 2022. The insurers will then be responsible for issuing the refunds to eligible policyholders.

It is important to note that trailers are not eligible for the refund as they are not subject to the MCCA assessment.

What if I don't receive my refund by the deadline?

If you are eligible for a refund but have not received it by the deadline, there are a few steps you can take.

Firstly, confirm that you meet the eligibility criteria. To qualify for the refund, you must have had a vehicle insured in Michigan before 11:59 p.m. on October 31, 2021. The policy must meet the minimum insurance requirements for operating a vehicle on Michigan roads.

If you are eligible, the next step is to contact your insurance company to ask why you have not received the refund. If you have changed insurance companies, contact the company that insured your vehicle on October 31. Verify your information with your insurance company and ensure that your refund has been issued. It is possible that your check was sent to the wrong address or that there is conflicting eligibility information.

If you are unable to reach a resolution with your insurance company, or if they offer you a refund in a form other than a paper check or direct deposit, you should report it to the state. Contact the Michigan Department of Insurance and Financial Services (DIFS) at 833-ASK-DIFS (833-275-3437) or [email protected]. They will be able to assist you with your claim.

It is important to note that the deadline for auto insurers to issue refunds was May 9, 2022. If you have not received your refund by this date, follow the steps outlined above to resolve the issue.

Frequently asked questions