Jeffrey Wade
Michigan drivers are eligible for a $400 auto insurance refund if their vehicle was insured with a policy that meets the minimum requirements for road driving as of October 31, 2021. The refund will be distributed by insurance companies through check or direct deposit. Some Michigan drivers have already received their refund checks, while others may have to wait until May 9, 2022. If you are eligible and have not received your refund by the deadline, you can contact your insurance company or the state at 833-ASK-DIFS.
| Characteristics | Values |
|---|---|
| Location | Michigan |
| Type of insurance | Auto insurance |
| Amount | $400 |
| Who will receive the refund | Drivers with eligible insured vehicles |
| Eligibility criteria | Vehicle must have been insured as of 11:59 pm, October 31, 2021, and covered by a policy that meets the minimum insurance requirements for operating on Michigan roads |
| Exclusions | Vehicles with only comprehensive coverage, trailers, and vehicles without a policy (garaged) as of October 31, 2021 |
| Eligible vehicles | Motorcycles, RVs, and historic vehicles (receiving $80 refund) |
| Distribution method | Check or direct deposit |
| Deadline for distribution | May 9, 2022 |
| Action if not received by the deadline | Contact insurance company or call the state at (833) ASK-DIFS |
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What You'll Learn
Who is eligible for the $400 Michigan auto insurance refund?
The $400 Michigan auto insurance refund is available to Michigan drivers who had a vehicle, motorcycle, or RV insured under a policy that met the minimum insurance requirements for operating on Michigan roads as of 11:59 p.m. on October 31, 2021. This includes vehicles with comprehensive coverage, such as those in storage, as long as they had the necessary policy in place.
Historic vehicles that were properly insured are eligible for a refund of $80. Trailers are not eligible for refunds, even if they were insured.
The Michigan Catastrophic Claims Association (MCCA) fund, which reimburses auto insurance companies for claims exceeding $600,000, accumulated a surplus of approximately $5 billion, partly due to the 2019 no-fault auto insurance reforms. As a result, Gov. Gretchen Whitmer called on the MCCA to issue refund checks and return about $3 billion of the surplus to policyholders.
The MCCA transferred the funds to insurers on March 7, 2022, and insurance companies are required to distribute the refunds to eligible policyholders by May 9, 2022, in the form of checks or direct deposits. The refunds cannot be applied as credit to current or future balances, and insurance companies cannot offer gift cards or future discounts in lieu of payment.
Eligible individuals who have not received their refund by the deadline should contact their insurance company or the Michigan Department of Insurance and Financial Services at 1-833-275-3437 or [email protected].
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When will eligible residents receive the $400 refund?
Eligible Michigan residents will receive their $400 refund checks from the Michigan Catastrophic Claims Association (MCCA) no later than early May. The MCCA fund pays for catastrophic care and gets its money from a catastrophic claims surcharge that used to be tacked onto all auto insurance premiums. The surcharge, which was $220 per vehicle in 2019, is now only paid by motorists who opt for lifetime catastrophic claims coverage.
The refunds will be distributed by insurance companies to clients who 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. Most individuals, including those with motorcycles or RVs, will receive the full $400 refund, while those with insured historic vehicles will receive $80. The refund can come in the form of a check or automatic deposit from the insurance companies.
The Michigan Catastrophic Claims Association transferred approximately $3 billion to insurers on March 7, and insurance companies are required to distribute the money via refunds to eligible policyholders. Insurers were asked to distribute the refunds "as soon as they can, but no later than May 9," according to Michigan Insurance and Financial Services Director Anita Fox. The Insurance Alliance of Michigan has stated that insurance companies are "working diligently" to get the money out.
If you are eligible to receive a refund and do not receive your check by the deadline, you can contact your insurance company or call the state at (833) ASK-DIFS.
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What is the deadline for auto insurers to send the $400 refund?
The deadline for auto insurers to send the $400 refund to policyholders with eligible vehicles was May 9. This was confirmed by Michigan Insurance and Financial Services Director Anita Fox, who stated that insurers were asked to distribute the refunds "as soon as they can, but no later than May 9."
The refunds were triggered by a transfer of $3 billion in surplus funds from the Michigan Catastrophic Claims Association (MCCA) to Michigan's auto insurers. This transfer signalled a 60-day deadline for auto insurers to send out the required $400 refunds per eligible vehicle.
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 requirements for road driving. The refund could come in the form of a check or an automatic deposit from the insurance companies.
If eligible individuals did not receive their refund by the deadline, they were advised to contact their insurance company or the Department of Insurance and Financial Services (DIFS) for assistance.
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What is the $400 refund for?
The $400 refund is for Michigan drivers who had a vehicle insured as of October 31, 2021. The refund is $400 per eligible insured vehicle and can come in the form of a check or automatic deposit from insurance companies. The deadline for auto insurers to send the money to policyholders was May 9, 2022.
The refund is a result of the Michigan Catastrophic Claims Association (MCCA) fund surplus. The MCCA fund pays for catastrophic care and gets its money from a catastrophic claims surcharge that used to be tacked on to all auto insurance premiums. That fee has since been significantly reduced and is now only paid by motorists who opt for lifetime catastrophic claims coverage.
Gov. Gretchen Whitmer called on the MCCA to issue refund checks and distribute its $5 billion surplus in November 2021. The association found that it could return about $3 billion in surplus to policyholders through individual refunds. The surplus grew from $2.4 billion in late 2020 to $5 billion as of June 30, 2021, in part due to the 2019 no-fault auto insurance reforms and higher-than-expected returns.
The refund is also available to those with motorcycles or RVs, while insured historic vehicles are eligible for an $80 refund.
In a separate case, New York households are also set to receive $400 'inflation refund checks' under a late budget deal. The state is set to return up to $2 billion to more than 8 million taxpayers by mailing checks for up to $200 per person or $400 per couple, depending on income level.
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How will the $400 refund be distributed?
The $400 refund will be distributed by insurance companies to clients who had a car insured with the company as of October 31, 2021. Most individuals, including those with motorcycles or RVs, will receive the full $400 refund, while those with insured historic vehicles will receive $80. The refund will be sent either as a check or direct deposit.
In Michigan, the refunds are a result of the Michigan Catastrophic Claims Association (MCCA) fund, which pays for catastrophic care and gets its money from a catastrophic claims surcharge that used to be tacked on to all auto insurance premiums. That fee has since been significantly reduced and is now only paid by motorists who opt for lifetime catastrophic claims coverage.
In New York, the refunds are a result of Governor Kathy Hochul's initiative to put money back in the pockets of New Yorkers. The state's revenue from the collection of sales tax had increased due to inflation, and Governor Hochul believes that money belongs to hardworking New York families. The refunds will be sent as checks to eligible New Yorkers.
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Frequently asked questions
Michigan drivers with a vehicle insured as of 11:59 pm, October 31, 2021, are eligible for the refund. The policy must meet the minimum insurance requirements for operating a vehicle on Michigan roads.
The deadline for auto insurers to send the money to policyholders was May 9, 2022. Some Michigan motorists received it earlier, while others may have received it later.
The refund can be received as a paper check in the mail or direct deposit into a bank account.
If you haven't received your refund by the deadline, contact your insurance company. If the issue is not resolved, reach out to DIFS at 833-ASK-DIFS (833-275-3437) or email [email protected].
