Auto Insurance Refunds To Total $400 Per Vehicle

The Michigan Catastrophic Claims Association will refund $3 billion of its $5 billion projected surplus, resulting in refunds of $400 per vehicle.

In a letter dated Monday to Department of Insurance and Financial Services Director Anita Fox, MCCA Executive Director Kevin Clinton said the organization anticipates the refunds will be distributed to members by March 9, 2022, with an exact time still being determined. Governor Gretchen Whitmer in a statement said it appeared motorists would receive refunds during the second quarter of 2022.

Ms. Whitmer had called for the MCCA to return the entire surplus to motorists though later clarified she wanted it to refund the maximum possible while still maintaining the balance necessary to assure quality of care to those catastrophically injured and receiving coverage of care through the fund.

Under the 2019 no-fault law changes, the MCCA was to analyze the need for a refund to motorists later next year. Ms. Whitmer recently called for that process to be moved up.

“These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver,” Ms. Whitmer said. “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.”