Michigan Auto Insurance: When To Expect Your Refund

In 2022, Michigan drivers received $400 per vehicle auto insurance refunds as part of the 2019 auto insurance reforms. The refunds were approved after the Michigan Catastrophic Claims Association (MCCA) identified a $5 billion surplus. The MCCA transferred $3 billion to Michigan insurers, who were responsible for issuing refunds to eligible drivers. The deadline for issuing these refunds was May 9, 2022. Eligible drivers who did not receive their refunds by this date were advised to contact their auto insurer or agent, or the Department of Insurance and Financial Services (DIFS).

The refund amount was $400 per vehicle or $80 per historic vehicle

In 2022, Michigan drivers received auto insurance refunds of $400 per vehicle or $80 per historic vehicle. The refund was the result of a surplus in the Michigan Catastrophic Claims Association (MCCA) catastrophic fund. The MCCA identified a $5 billion surplus in this fund, which reimburses auto insurance companies for any claims exceeding $600,000.

Governor Gretchen Whitmer announced that auto insurers had one week to issue the remaining refunds to eligible Michiganders. This announcement was made on May 3, 2022, and the deadline for refunds was set for May 9, 2022.

The refund was applicable to anyone who had a vehicle, motorcycle, or RV that was insured by a policy that allowed them to operate in Michigan as of October 31, 2021. This was part of the 2019 auto insurance reforms negotiated between Whitmer and the Republican-run legislature, which aimed to cut down on the highest rates in the nation by ending mandatory lifetime coverage for auto crash victims and creating new fee limits for medical treatment.

The refunds totalled $3 billion, with $2.2 billion distributed by May 4, 2022, and $1.2 billion of that sent out in the two weeks prior. Eligible drivers did not need to take any action to receive their refund, but they were advised to verify their address and banking information with their insurance company to prevent delays.

Those who did not receive their refund by the deadline were advised to contact their insurance company or the Department of Insurance and Financial Services (DIFS).

The deadline for refunds was May 9, 2022

The Michigan Department of Insurance and Financial Services (DIFS) set a deadline of May 9, 2022, for insurance companies to distribute $400 refunds per qualifying vehicle. This deadline was set after the Michigan Catastrophic Claims Association (MCCA) identified a $5 billion surplus in its catastrophic fund, of which $3 billion was to be returned to Michigan drivers in the form of auto insurance refunds.

The surplus was the result of cost controls, consumer protections, and other savings put into place by the state's new bipartisan auto insurance law. The MCCA transferred the $3 billion to Michigan insurers on March 9, 2022, triggering the 60-day deadline imposed by DIFS for insurers to issue refunds to eligible Michiganders.

Eligible Michiganders who had a car, motorcycle, or RV insured to drive legally on Michigan roads as of 11:59 pm on October 31, 2021, were expected to receive their refunds by the deadline. The refunds were to be issued in the form of a paper check or direct deposit, and no application or fees were necessary to receive them.

Governor Gretchen Whitmer reminded Michiganders that the deadline for auto insurers to issue the refunds was May 9, 2022, and encouraged eligible residents who had not received their refunds by that date to contact their insurance company or DIFS for assistance.

No action was required to receive the refund

Eligible Michigan drivers did not need to take any action to receive their auto insurance refunds. The refunds were sent out automatically by insurance companies. However, eligible drivers could speed up the process by verifying their address and banking information with their insurance company. This would help to prevent delays in receiving the refund.

The refunds were initiated by the Michigan Catastrophic Claims Association (MCCA), which identified a $5 billion surplus in its catastrophic fund. This surplus was the result of cost controls, consumer protections, and other savings put into place by the state's new bipartisan auto insurance law. The MCCA transferred $3 billion of this surplus to Michigan insurers, who were then responsible for issuing the refunds to eligible drivers. The remaining $2 billion was retained by the MCCA to ensure continuity of care for accident survivors.

The refunds were $400 per vehicle or $80 per historic vehicle. They were sent out in the form of paper checks or ACH deposits. The deadline for insurance companies to issue these refunds was May 9, 2022. Eligible drivers who did not receive their refunds by this date were advised to contact their insurance company or the Department of Insurance and Financial Services (DIFS).

The auto insurance reforms that led to these refunds were negotiated between Governor Gretchen Whitmer and the Republican-run legislature. These reforms were designed to cut down Michigan's high auto insurance rates by ending mandatory lifetime coverage for auto crash victims and creating new fee limits for medical treatment.

Eligible drivers who didn't receive their refund by the deadline should contact their auto insurer

Eligible drivers who did not receive their refund by the deadline should contact their auto insurer or agent. It is important to note that eligible drivers do not need to do anything to receive their refund, but they may experience delays if their insurer has incorrect or out-of-date address or banking information. Therefore, eligible drivers who did not receive their refund by the deadline should first verify their address and banking information with their insurer. If the issue is not resolved, eligible drivers should then contact their insurer to ensure that their refund has been issued.

If eligible drivers are still unable to resolve the issue with their insurer, they can contact the Michigan Department of Insurance and Financial Services (DIFS) by calling 833-ASK-DIFS (833-275-3437) Monday through Friday from 8 a.m. to 5 p.m. or by emailing [email protected]. DIFS can also assist eligible drivers if their insurer offers their refund through something other than a paper check or ACH deposit.

It is important to note that eligible drivers who have moved since the deadline date of October 31, 2021, should contact their insurance company to update their address or banking information to prevent delays in receiving their refund.

The refunds were a result of the Michigan Catastrophic Claims Association's surplus funds

The Michigan Catastrophic Claims Association (MCCA) identified a surplus of $5 billion in November 2021. The MCCA reimburses auto insurance companies for any claims that exceed $600,000. As a result of cost controls, consumer protections, and other savings put in place by the state's new bipartisan auto insurance law, the MCCA had accumulated this surplus.

The MCCA voted to return an estimated $3 billion of this surplus to its member insurance companies, in the form of refunds issued to policyholders. This was to be done in such a way that ensured the viability of the fund. The MCCA's actuarial analysis determined that this amount could be returned while ensuring continuity of care for auto accident survivors.

The surplus funds were turned over to insurance companies by March 9, 2022, and insurers were then responsible for issuing refunds to eligible policyholders. The deadline for these refunds was set for no later than 60 days after the transfer of funds, i.e., May 9, 2022.

Eligible policyholders did not need to do anything to receive their refund, but they could verify their address and banking information with their insurance company to prevent delays. The refunds were issued in the form of a paper check or an ACH deposit.

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