Answers to your most common questions
Eligible Michigan drivers will start seeing $400 refund checks starting this week. Here’s everything you need to know.
Governor Gretchen Whitmer and the state’s top insurance regulator said Monday a transfer of $3 billion in excess funds from the Michigan Catastrophic Claims Association to auto insurers would be completed this week. Businesses will have 60 days to issue refunds – no later than May 9. Checks could arrive in the mail for some starting this week.
Continued: Insured Michigan drivers will soon begin receiving $400 refunds
We have received many questions regarding refund checks, Here is an overview of the answers to the most common.
Who is eligible for a refund?
All vehicles that were insured as of 11:59 p.m. on October 31, 2021 are eligible to receive reimbursement if the vehicle was covered under a policy that meets the minimum insurance requirements for driving a vehicle on Michigan roads.
Should I do something?
A refund check or ACH deposit will be issued to eligible Michigan policyholders. If you are eligible for a reimbursement, it will be sent to you by your insurance company and you will not have to do anything to receive it.
Are motorcycles and/or motorhomes eligible?
Yesmotorcycles and recreational vehicles are eligible for the $400 reimbursement if the motorcycle or recreational vehicle was covered by a policy that meets the minimum insurance requirements to operate on Michigan roads. Trailers are not subject MCCA evaluation and are therefore not eligible for reimbursement.
I don’t have unlimited PIP coverage. Am I eligible?
Yes. All qualifying vehicles are eligible to receive reimbursement regardless of the level of PIP medical coverage chosen on the policy.
I sold my car in July and did not have an insured vehicle as of October 31, 2021. Am I eligible?
No. Only vehicles that were insured at 11:59 p.m. on October 31, 2021 will be eligible for reimbursement.
What does this mean for people who are currently receiving care for injuries caused by traffic accidents?
This reimbursement does not affect the care that car accident survivors are entitled to under their car insurance policy. The MCCA’s actuarial analysis determined that about $3 billion of the surplus could be returned to policyholders while providing continuity of care for motor vehicle accident survivors.
As of June 2021, the MCCA catastrophic care fund had over $27 billion in assets with an estimated liability of $22 billion.
What if I have moved since October 31, 2021?
Your insurance company will send your reimbursement by check or ACH deposit to the address or bank account they have on file. To avoid delays in getting your reimbursement, if you have moved, you should contact your insurance company to ensure they have your up-to-date information.
Is the refund taxable?
MCCA reimbursements are generally non-taxable for most Michiganders. Individuals who deducted their auto insurance premiums as a business expense may be required to include all or part of that reimbursement as income on their tax return. Please consult your insurance agent or tax advisor if you have any questions about your particular situation.
What if I have changed insurer since October 31?
The insurer who insured your vehicle on October 31, 2021 at 11:59 p.m. will issue the refund.
You can find more DIFS FAQs here.
The state said eligible consumers who don’t get a refund should contact their auto insurer or agent. Those unable to resolve questions or concerns may contact the state Department of Insurance and Financial Services.
The catastrophic care fund, which reimburses insurers for medical and other costs for people seriously injured in crashes, is funded by an annual per-car fee that became optional under a 2019 law. The governor awarded the excess and reimbursements in part to the law which also limited or reduced what health care providers and home health aides can charge auto insurers, who said they were being ripped off.
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