After years of the highest auto insurance rates in the country, Michigan drivers will finally have something to show for their high payments – a refund of $ 400 per vehicle from the Michigan Catastrophic Claims Association fund surplus .
While many were excited to hear the news last week, the timing and logistics of the situation remained major issues for people and insurance agencies across the state.
However, the state released additional information and advice earlier this week, including imposing a May 9 deadline on insurance companies to reimburse all eligible drivers. The Michigan Department of Insurance and Financial Services has also published a newsletter for Michigan insurers and launched a consumer FAQ page.
The MCCA reimbursements were made possible by the cost reduction and fraud prevention provisions of the landmark, bipartisan auto insurance reform enacted by Whitmer in 2019.
The reimbursement plan issued by the MCCA will result in reimbursements of $ 400 sent to policyholders for each insured vehicle at 11:59 p.m. on October 31.
Surplus funds will be transferred by the MCCA to insurers by March 9, and the new DIFS bulletin directs insurers to issue refunds by check or direct deposit to consumers as quickly as possible, but no later than May 9.
In addition to issuing guidelines for the industry, DIFS has also launched an FAQ page for consumers at Michigan.gov/MCCArefund.
The website has information and answers to common questions about refund time, eligibility requirements, and tells consumers what they can do if they have questions or concerns about their refunds.
Additional information on the auto insurance reform law, including the amnesty period that allows uninsured drivers to obtain auto insurance without penalty if they apply for coverage before January 1, is available on Michigan. .gov / AutoInsurance.
Frequently asked questions, tips for buying insurance, and an insurance locator to help you find licensed agents are also available.
Consumers with questions or concerns about auto insurance can contact DIFS by calling Monday through Friday 8 a.m. to 5 p.m. at 833-275-3437 or by emailing [email protected]
We are happy to see these refunds coming as it is a welcome break for drivers who have not only suffered from high insurance rates for years, but have also been hit hard by the recent increase in gasoline costs. and even automobiles themselves.
We commend the Governor and the Legislature for working across the aisle to pass the bipartisan legislation that led to these refunds, which serve as a tangible sign of progress on auto insurance reform in the state of Michigan.
These reimbursements will directly benefit drivers, with the added benefit of boosting spending in the state’s economy, as the extra hundreds of dollars in every driver’s pocket will likely encourage people to spend money on goods and services throughout Michigan.