Where Is My $400 Auto Insurance Refund?

Michigan drivers were expecting $400 auto insurance refunds by May 9, 2022, as part of the state's auto insurance reforms. The refunds were made possible by the cost-saving and fraud prevention provisions of the historic, bipartisan auto insurance reform signed into law by Governor Gretchen Whitmer in 2019. The reform was designed to cut down on what were the highest auto insurance rates in the nation.

Who is eligible for the refund?

The $400 refund per vehicle is available to Michigan drivers who had a vehicle, including a motorcycle or RV, insured under a policy that allowed them to operate in Michigan as of 11:59 p.m. on October 31, 2021. This eligibility criterion was set by the Michigan Catastrophic Claims Association (MCCA), which reported a surplus of around $5 billion. The surplus was due in part to the 2019 no-fault auto insurance reforms, which ended mandatory lifetime coverage for auto crash victims and created new fee limits for medical treatment.

The 2019 reforms also removed the requirement for all drivers to pay for unlimited Personal Injury Protection (PIP) medical coverage. Drivers who opted out of maximum PIP coverage will still be eligible for the refund. Most individuals will receive the full $400 refund, while those with insured historic vehicles will receive $80.

Individuals who were "garaging" vehicles as of October 31, 2021, without policies on the car, will not be eligible for the refund.

The Michigan Department of Insurance and Financial Services (DIFS) has stated that eligible drivers do not need to take any action to receive their refund. However, they may wish to confirm that their insurer has their current address and banking information to avoid delays.

How will the refund be sent?

The $400 auto insurance refund will be sent to eligible drivers in Michigan via paper checks in the mail or direct deposit. The Michigan Catastrophic Claims Association (MCCA) will transfer the funds to insurers, who will then be responsible for distributing the refunds to their customers.

Most insurance companies are paying customers using the same method the customer uses to pay their insurance premiums. For example, if a customer pays by check or credit card, they will likely receive their refund by check, and if they pay by ACH transfer, they will likely receive their refund by ACH deposit.

It is important to note that the refund will be sent in cash, and eligible individuals should not accept substitutions, such as premium credits or gift cards, from their insurance company.

Individuals who have not received their refund by the deadline of May 9, 2022, are advised to contact their insurance company or agent to ensure that their address and banking information are correct. If a resolution cannot be reached with the insurance company, individuals can call the Department of Insurance and Financial Services (DIFS) at 833-ASK-DIFS for assistance.

What if the refund doesn't arrive?

If your $400 auto insurance refund doesn't arrive, there are a few steps you can take to address the issue. Firstly, check to make sure that the refund wasn't deposited into your account. If you haven't received your refund by the deadline of May 9, 2022, you can contact your insurance company directly with any questions or concerns. Additionally, you can call the state at (833) ASK-DIFS or email [email protected] for further assistance.

It's important to note that there have been reports of scammers attempting to take advantage of those awaiting their refunds. Be cautious of unsolicited calls or emails requesting personal information, and refrain from providing any sensitive details over the phone or via email. Instead, contact your insurance company or the state directly using the official contact information provided.

If you continue to encounter issues with receiving your refund, you may need to take additional steps to resolve the matter. This could include filing a complaint with the Department of Insurance and Financial Services (DIFS) or seeking further guidance from consumer protection agencies or legal services.

To avoid potential scams, remember to only provide personal information through secure and official channels, such as the insurance company's website or a verified phone number. Do not disclose sensitive information to unsolicited callers or suspicious websites.

What to do if contacted for personal information?

What to do if contacted for personal information

If you are contacted by someone asking for personal information related to your refund, it is likely a scam. Michigan Insurance and Financial Services Director, Anita Fox, and Michigan Attorney General Dana Nessel have warned against giving out personal information over the phone to callers who may purport to be processing a refund. There have been reports of scammers attempting to take advantage of those awaiting their refunds. Fox said:

> People should never give out their personal information over the phone from an unsolicited call.

US residents can opt out of "sales" of personal data. If you are unsure whether the call is legitimate, you can contact the Michigan Department of Insurance and Financial Services (DIFS) by calling Monday through Friday 8 a.m. to 5 p.m. at 833-ASK-DIFS (833-275-3437) or by emailing [email protected].

How to avoid scams

Michigan drivers will receive a $400 refund per vehicle by May 9, 2022, via paper checks or direct deposits. The Michigan Catastrophic Claims Association (MCCA) has transferred the surplus funds to insurance companies, which are responsible for distributing the refunds.

To avoid scams related to the $400 auto insurance refund or other similar situations, here are some essential precautions:

Verify the Organization and Website Security

Before providing any personal or financial information, always verify that you are communicating with a legitimate organization. Official government websites often end in .gov or .mil. Ensure the website is secure by looking for "https://" and a closed padlock in the address bar.

Be Wary of Unsolicited Requests

Be cautious when receiving unsolicited calls, emails, or messages requesting personal or financial information. Legitimate organizations will not ask for sensitive information through these means. Do not click on any links or attachments in unsolicited emails. Instead, contact the organization directly through a trusted website or official phone number.

Recognize Common Scam Tactics

Scammers often pretend to be from a government agency or a well-known company. They may claim there is a problem with your account or that you have won a prize, creating a sense of urgency to pressure you into acting immediately. They may also instruct you to pay using specific methods, such as cryptocurrency, wire transfers, payment apps, or gift cards. Be vigilant and trust your instincts.

Protect Your Cybersecurity

Maintain strong cybersecurity practices. Use secure passwords, keep your software and operating systems up to date, and install antivirus and firewall protection. Be cautious when opening emails from unknown senders and be wary of suspicious links or website addresses that resemble legitimate sites.

Report Scams and Seek Help

If you suspect a scam or have been scammed, report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov or by calling 877-382-4357. Additionally, contact your financial institution and law enforcement authorities for guidance and assistance in protecting your finances and personal information.

Frequently asked questions