Paul Sanchez
Michigan drivers with auto insurance will be receiving $400 refund checks, with Governor Gretchen Whitmer announcing that the Michigan Catastrophic Claims Association (MCCA) will complete the transfer of $3 billion in surplus funds to Michigan's auto insurers. The transfer will trigger a 60-day deadline for auto insurers to send out the required $400 refund checks per vehicle to eligible Michiganders, with some residents already receiving their checks.
| Characteristics | Values |
|---|---|
| Amount | $400 per vehicle, $80 per historic vehicle |
| Mode of Payment | Check or ACH deposit |
| Eligibility | Vehicle insured in Michigan as of 11:59 p.m. on October 31, 2021 |
| Deadline for Insurance Companies | May 9, 2022 |
| What to do if not received | Contact auto insurer or agent, or DIFS |
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What You'll Learn
$400 refund checks for insured Michigan drivers
Michigan drivers with auto insurance will be receiving a $400 refund check per vehicle, Gov. Gretchen Whitmer announced. The Michigan Catastrophic Claims Association (MCCA) will complete the transfer of $3 billion in surplus funds to Michigan's auto insurers, which will then be distributed to eligible Michiganders. The transfer will trigger a 60-day deadline for auto insurers to send out the required $400 refund checks per vehicle to eligible Michiganders no later than May 9, 2022.
The refunds are part of 2019 auto insurance reforms that were designed to cut down on what were the highest rates in the nation. The reforms ended mandatory lifetime coverage for auto crash victims and created new fee limits for medical treatment. The governor has attributed the surplus and refunds in part to the law that also curbed or cut what health providers and home aides can charge auto insurers.
To be eligible for the refund, residents must have had a vehicle insured in Michigan as of October 31, 2021, with a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads. The refund will come in the form of a check or automatic deposit from the insurance companies.
The Michigan Department of Insurance and Financial Services (DIFS) has launched a consumer FAQ page at Michigan.gov/MCCArefund, which contains important information and answers common questions about the refund timeline, eligibility requirements, and what to do if there are questions or concerns about the refunds.
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The deadline for insurance companies to issue checks
The Michigan Department of Insurance and Financial Services (DIFS) has set a deadline for insurance companies to issue refund checks to eligible consumers. The deadline is 60 days from the transfer of surplus funds from the Michigan Catastrophic Claims Association (MCCA) to auto insurers. This transfer was completed on March 9, 2022, setting the deadline for issuing refund checks as May 9, 2022.
The MCCA surplus funds, totaling approximately $3 billion, are being returned to Michiganders due to the new no-fault reforms passed in 2019, investment returns, and a decrease in catastrophic injury claims during the pandemic. The refunds amount to $400 per eligible insured vehicle and are intended to lower costs for Michigan drivers.
Eligible consumers who have not received their refund checks by the deadline are advised to contact their auto insurer or agent. If consumers are unable to resolve their concerns with their insurer, they can seek assistance from DIFS by calling 833-ASK-DIFS (833-275-3437) or emailing [email protected]. DIFS is committed to helping consumers understand eligibility requirements and ensuring that refunds are received securely and promptly.
It is important to note that the refunds are not taxable for most Michiganders. However, those who deducted their auto insurance premiums as a business expense may need to include the refund as income on their tax returns. Consumers with questions regarding their specific circumstances are advised to consult their insurance agent or tax professional.
While some Michigan drivers have already received their refund checks, others may have to wait until the deadline for insurers to issue payments. The pace at which companies process refunds may vary, and it is recommended to ensure that insurers have current address and bank account information to avoid delays.
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Auto insurance refunds are generally not taxable
In 2022, Michigan drivers with auto insurance started receiving $400 refund checks. The Michigan Catastrophic Claims Association (MCCA) transferred $3 billion in surplus funds to Michigan's auto insurers, and insurers had 60 days to issue the refunds. The deadline for auto insurers to send out the required $400 refund checks per vehicle to eligible Michiganders was May 9, 2022.
The MCCA refunds are generally not taxable for most Michiganders. However, those who deducted their auto insurance premiums as a business expense may need to include all or a portion of the refund as income on their tax returns. It is recommended to consult an insurance agent or tax professional for specific circumstances.
The refunds are a result of Governor Gretchen Whitmer's call to the MCCA to issue refunds from the surplus funds in the catastrophic care fund. The fund, which is financed by a per-car fee, reimburses insurers for medical and other expenses for individuals who have been seriously injured in crashes. The surplus in the MCCA fund is attributed to three main reasons: the new no-fault reforms passed in 2019, which include a fee schedule limiting healthcare provider charges; investment returns outperforming estimates; and fewer people driving during the start of the pandemic, resulting in fewer catastrophic injury claims.
While some Michigan drivers have already received their $400 auto insurance refund checks, others have expressed concern about not receiving their checks yet. Insurance and state officials have assured the public that there is no reason to worry, and eligible consumers who do not receive their refunds by the deadline should contact their auto insurer or agent. The Michigan Department of Insurance and Financial Services (DIFS) has also launched a consumer FAQ page at Michigan.gov/MCCArefund to address common questions and concerns about the refunds.
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When to expect payment and eligibility criteria
In 2022, Michigan Governor Gretchen Whitmer announced that eligible Michigan drivers would receive a $400 refund per insured vehicle. The refunds are a result of the surplus funds in the Michigan Catastrophic Claims Association (MCCA). The MCCA fund, which reimburses insurers for medical and other costs for people seriously injured in crashes, is funded with an annual per-car fee that became optional under a 2019 law.
The deadline for auto insurers to send out the required refund checks was May 9, 2022. This 60-day deadline was triggered by the transfer of $3 billion in surplus funds from the MCCA to Michigan's auto insurers, which was completed in early March 2022.
To be eligible for the refund, residents must have had a vehicle insured in Michigan as of 11:59 p.m. on October 31, 2021. The policy must meet the minimum insurance requirements for operating a vehicle on Michigan roads. This includes motorcycles and RVs, but excludes trailers.
Eligible consumers who did not receive their refunds by the deadline should contact their auto insurer or agent. If consumers are unable to resolve their questions or concerns directly with their insurer, they can contact the Michigan Department of Insurance and Financial Services (DIFS) by calling 833-ASK-DIFS (833-275-3437) or by emailing [email protected].
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Contacting your insurer or agent for queries
If you have any questions or concerns about your auto insurance refund, you can contact your insurer or agent directly. They will be able to provide you with information specific to your policy and situation. It is important to ensure that your insurer has your current address and bank account information to avoid any delays or issues with receiving your refund.
If you are unable to get a response from your insurer or agent, or if your query remains unresolved, you can seek further assistance from the Michigan Department of Insurance and Financial Services (DIFS). DIFS is dedicated to helping Michiganders understand the eligibility requirements and receive their refunds promptly and securely. They have launched a consumer FAQ page at Michigan.gov/MCCArefund, which provides detailed information about the refund timeline, eligibility requirements, and instructions on what to do if you have questions or concerns.
You can contact DIFS by calling 833-ASK-DIFS (833-275-3437) from Monday through Friday between 8 a.m. and 5 p.m. Alternatively, you can email them at [email protected]. Their team is available to answer your questions, address your concerns, and help resolve any issues you may have regarding your auto insurance refund.
It is important to note that the auto insurance refunds in Michigan are subject to certain eligibility requirements. To qualify, residents must have had a vehicle insured in Michigan as of 11:59 p.m. on October 31, 2021, and the policy must meet the minimum insurance requirements for operating a vehicle on Michigan roads. The refund amount is $400 per eligible insured vehicle, and it can be issued in the form of a check or an ACH deposit, depending on your preference and the insurer's practices.
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Frequently asked questions
The deadline for insurance companies to send out refund checks was May 9, 2022.
$400 per vehicle.
Eligible Michigan drivers with auto insurance.
Contact your auto insurer or agent to ensure they have your current address and bank account information.
The MCCA refunds are generally not taxable for most Michiganders.
