LANSING, Mich. (WJMN) – The Michigan Department of Insurance and Financial Services and Governor Whitmer announced today that the Michigan Catastrophic Claims Association will immediately begin the process of refunding $400 per vehicle to Michigan drivers.

Drivers can expect to see the checks in the second quarter of 2022.

“These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver,” said Governor Whitmer. “Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders. We are working together to put Michigan drivers first, and I am directing DIFS to ensure that the MCCA and Michigan’s auto insurance companies accurately, fairly, and promptly issue these refunds.” 

“The Governor and I called for these refunds because we recognize that this surplus money belongs to Michigan drivers, and we need to put it back in their pockets,” said Lt. Governor Gilchrist. “These refunds are a major win for all drivers—especially Detroiters—who have paid the highest insurance rates in the nation for decades. There is still work to be done, and Governor Whitmer and I will continue to take action in the best interest of Michigan drivers.” 

“DIFS stood with Governor Whitmer in calling upon the MCCA to return surplus funds to Michiganders with auto insurance, and we applaud the MCCA for taking the necessary next steps to deliver the largest refund possible to drivers while maintaining the viability of the fund,” said DIFS Director Anita Fox. “In the coming months, DIFS will work to ensure that refund checks are issued to Michigan consumers as quickly as possible.” 

Governor Whitmer called on the MCCA to issue refund checks from its projected surplus of $5 billion. The MCCA voted unanimously to issue the refunds. The surplus is in part possible due to bipartisan auto insurance reform signed into law during 2019.

The MCCA determined approximately $3 billion could be returned to policy holders while also continuing care for auto accident survivors. The refund plan submitted to DIFS Monday will return money to every Michigan resident with an auto policy in force as of 11:59 on October 31, 2021. Policy holders don’t need to do anything in order to be refunded. The surplus funds will be given to insurance companies operating in Michigan and they will be responsible for issuing refund checks to consumers as quickly as possible but no later than 60 days after the transfer of funds.

More information about the auto insurance reform law, including the uninsured driver amnesty period expiring before January 1, 2022 can be found online.