Advertisement

Michigan drivers to receive $400 insurance refunds by next year

Michigan drivers to receive $400 insurance refunds by next year
The Michigan Catastrophic Claims Association will issue $3 billion in insurance refunds to drivers during the second quarter of 2022. Photo by Wikimedia Commons

Dec. 7 (UPI) -- Drivers in Michigan will receive auto insurance refunds of $400 per vehicle, Gov. Gretchen Whitmer (D) and the Department of Insurance and Financial Services said Tuesday.

The Michigan Catastrophic Claims Association will issue $3 billion in insurance refunds to drivers during the second quarter of 2022.

Advertisement

The move comes after Whitmer signed auto insurance legislation in 2019 aimed at lowering premiums. The governor said that the surplus in the MCCA fund grew to $5 billion since then and that the refund would put money back into the pockets of Michigan drivers.

In a statement, she said she was pleased that the MCCA was able to develop the plan quickly after unanimously approving her Nov. 1 request. From the $5 billion surplus, the MCCA determined during their analysis that $3 billion could be returned to policyholders.

MCCA -- a nonprofit corporation set up by the insurance industry -- manages funds intended to pay for catastrophic care. Whitmar said Michigan drivers have been paying into the fund for decades.

Advocates for victims of accidents in Michigan have criticized the move, saying the refund will take away funds intended for catastrophically injured residents.

Advertisement

Republicans have called the move a political ploy as the refunds are expected to be issued months before Whitmer seeks reelection in November.

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement