Governor Whitmer Announces Auto Insurance Reimbursement Details


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More than $ 3 billion will be returned to Michigan drivers from a surplus in the Michigan Catastrophic Claims Fund. Governor Gretchen Whitmer announced in a press release early Tuesday morning that the reimbursement would take the form of a check for $ 400 for each vehicle registered. If you’re already planning what to spend it on, you might want to pump up the breaks. The repayment is not expected until the second quarter of 2022.

The Michigan Catastrophic Claims Association is overseen by the Department of Insurance and Financial Services. DIFS Director Anita Fox said, “Over the next several months, DIFS will work to ensure that refund checks are issued to Michigan consumers as quickly as possible. The MCCA voted unanimously last month to approve the disbursement.

The surplus stands at more than $ 5 billion thanks to the insurance reform that was passed in 2019. The governor’s office said the reimbursement would not affect the fund’s ability to provide care to people. car crash survivors statewide. Reimbursement is eligible for anyone with at least one vehicle registered on Halloween night at 11:59 a.m.


“In a move that will put money back in the pockets of Michigan drivers, Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) today announced that the Michigan Catastrophic Claims Association (MCCA) has responded. to the governor’s call to return. excess funds to Michigan policyholders and immediately begin the process of reimbursing Michigan drivers $ 400 per vehicle. Drivers are expected to receive checks in the second quarter of 2022.

“These refunds and the recently announced average statewide rate cuts are reducing costs for every Michigan driver,” said Governor Whitmer. “The Michiganders have contributed to the Catastrophic Care Fund for decades, and I’m glad the MCCA developed this plan so quickly after unanimously approving my request to put the excess funds back into the Michiganders’ pockets. We’re working together to put Michigan drivers first, and I call on DIFS to ensure that the MCCA and Michigan auto insurance companies issue these refunds accurately, fairly, and promptly.

“The governor and I have requested these refunds because we recognize that this excess money belongs to Michigan drivers, and we need to put it back in their pockets,” said Lt. Gov. Gilchrist. “These refunds are a major victory for all drivers, especially residents of Detroit, who have paid the highest insurance premiums in the country for decades. There is still work to be done, and Governor Whitmer and I will continue to act in the best interests of Michigan drivers.

“DIFS joined Governor Whitmer in calling on the MCCA to return the excess funds to the Michiganders with auto insurance, and we applaud the MCCA for taking the next steps necessary to provide the largest possible reimbursement possible to all drivers. maintaining the viability of the fund, ”said DIFS Director Anita Fox. “Over the next few months, DIFS will work to ensure that refund checks are issued to Michigan consumers as quickly as possible.”

In November, Governor Whitmer asked the MCCA to issue refund checks to consumers on its forecasted surplus of $ 5 billion, which the MCCA then voted unanimously. Surplus and refunds are possible, in part, thanks to the landmark bipartisan auto insurance reform enacted by the governor in 2019.

The MCCA’s analysis determined that approximately $ 3 billion of the surplus could be returned to policyholders while providing continuity of care for road accident survivors. The reimbursement plan submitted to DIFS on Monday by the MCCA will reimburse money to every Michigander with an auto insurance policy in effect at 11:59 p.m. on October 31, 2021. Eligible consumers do not need to take action to receive a refund. Surplus funds will be returned by the MCCA to insurance companies operating in Michigan by March 9, 2022, and insurers will be responsible for issuing checks to eligible policyholders. DIFS will require insurers to issue reimbursement checks to consumers as quickly as possible, but in no case more than 60 days after the transfer of funds. This deadline and additional advice to insurers will be detailed in a bulletin to be published by DIFS in the near future.

Additional information on the auto insurance reform law, including the uninsured driver’s amnesty period, which expires before January 1, 2022, is available at Michigan.gov/AutoInsurance. Frequently asked questions, tips for buying insurance, and an insurance locator to help you find licensed agents are also available.

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