Auto Insurance Refunds: Michigan's Unclaimed Money Mystery

Michigan auto insurance policyholders are eligible for a refund of $400 per vehicle or $80 per historic vehicle. The refunds are a result of auto insurance reforms approved by the state legislature in 2019, which aimed to lower the cost of the state's previous no-fault auto insurance system. The Michigan Catastrophic Claims Association (MCCA) is responsible for distributing the funds to insurers, who will then pass the refunds on to their policyholders. The deadline for insurers to distribute the refunds was May 9, 2022. Eligible residents do not need to take any action to receive their refund, but they may want to verify their address and banking information with their insurance company to prevent delays.

Who is eligible for a refund?

The $400 refund per vehicle is available to all Michigan drivers who had a vehicle, motorcycle, or RV insured under a policy that meets the minimum insurance requirements for operating on Michigan roads as of 11:59 pm on 31 October 2021. This means that vehicles with only comprehensive coverage, such as cars in storage, are not eligible for the refund.

Historical vehicles that were properly insured are eligible for a refund of $80. Trailers are not eligible for a refund, even if they were insured.

The refund is also available to those who owe a balance to their insurance company, but the refund cannot be used to cover this balance. The insurance company must issue the refund in the form of a check or ACH transfer.

The Michigan Catastrophic Claims Association (MCCA) is distributing the funding to insurers, who will then pass the refund on to each of their policyholders in the state. The MCCA is a statutorily established nonprofit that all auto insurers pay into for personal injury protection under the state’s no-fault auto insurance system.

How much is the refund?

The refund amount depends on the type of vehicle insured and the type of insurance coverage. For eligible cars and motorcycles, the refund is $400 per vehicle. For historical vehicles, the refund is $80 each. Trailers are not eligible for any refund, while RVs are eligible for the $400 refund.

The refund amount is the same for all vehicles that were insured as of 11:59 pm on October 31, 2021, and covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads. This means that vehicles with only comprehensive coverage, such as cars in storage on October 31, 2021, are not eligible for any refund.

The refund is a result of the 2019 auto insurance reforms, negotiated between Governor Gretchen Whitmer and the Republican-run legislature, which aimed to reduce Michigan's high auto insurance rates. The surplus funds from the Michigan Catastrophic Claims Association (MCCA) were turned over to insurance carriers by the MCCA on March 9, 2022, and insurers were responsible for issuing the refunds to eligible policyholders within 60 days, with a deadline of May 9, 2022.

The refund cannot be used to offset any balance owed to the insurance company, and the insurance company cannot issue a gift card or offer future discounts in lieu of payment. If you are eligible for a refund and have not received it by the deadline, contact your insurance company or the Michigan Department of Insurance and Financial Services (DIFS) for assistance.

When will I get my refund?

The Michigan Catastrophic Claims Association (MCCA) is distributing funding to insurers, who will then pass the refund on to each of their policyholders in the state. The surplus funds were turned over to insurance carriers by the MCCA on March 9, 2022. Insurers are responsible for issuing checks or ACH deposits to eligible policyholders within 60 days of receiving the funds. However, there is a deadline of May 9, 2022, for the completion of the distribution of refunds to Michigan drivers.

The refunds are $400 per vehicle or $80 per historic vehicle. The $400 refund applies to all vehicles that were insured as of 11:59 p.m. on October 31, 2021, and covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads. This includes motorcycles and RVs. Trailers are not eligible for refunds as they do not pay the MCCA assessment.

If you are eligible for a refund, your auto insurer will send it to you automatically, and you do not need to take any action. However, to prevent delays, you may want to verify your address or banking information with your insurance company. If you have not received your refund by May 9, 2022, you should contact your auto insurer or agent, or the state at (833) ASK-DIFS.

Which vehicles are eligible for a refund?

The Michigan Catastrophic Claims Association (MCCA) has issued $400 refunds per vehicle to eligible Michiganders. The refund is for vehicles that were insured to drive legally on Michigan roads as of 11:59 p.m. on October 31, 2021. This includes cars, motorcycles, and RVs. The refund is also available for historic vehicles, which are eligible for a refund of $80 per vehicle.

To be eligible for the refund, the vehicle must have been covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads. This means that the policy must meet the requirements set out in MCL 500.3101 and MCL 500.3103.

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

If you are unsure whether your vehicle is eligible for a refund, you can contact the Michigan Department of Insurance and Financial Services (DIFS) for more information.

How will I receive my refund?

Eligible Michigan drivers will receive their refund in the form of a $400 check or direct deposit into their bank account. The Michigan Catastrophic Claims Association (MCCA) is distributing the funds to insurers, who will then pass the refund on to each of their policyholders in the state.

The refund will be sent to eligible drivers automatically, so they do not need to take any action to receive it. However, eligible drivers may want to verify their address and banking information with their insurance company to prevent delays.

The MCCA is a statutorily established nonprofit that all auto insurers in Michigan pay into for personal injury protection under the state's no-fault auto insurance system. The refunds are the result of a surplus in the MCCA, which grew to over $5 billion, and auto insurance reforms approved by the state legislature in 2019.

The initial intent of the reforms was to lower the cost of the state's previous no-fault auto insurance system, which had made Michigan's auto insurance rates among the priciest in the nation. The new laws allowed drivers to choose their no-fault medical coverage type and waive personal injury protection coverage if they met certain conditions and were enrolled in Medicare A and B.

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