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$400 refund checks will be issued per car to Michigan drivers with auto insurance

Refunds will be issued for each car insured with personal injury protection.

LANSING, Mich. — Michigan drivers with auto insurance will be receiving a $400 refund check, Gov. Gretchen Whitmer announced Tuesday. Drivers will receive one check per vehicle and are expected to receive the money in the second quarter of 2022.

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

The Michigan Catastrophic Claims Association (MCCA) voted to support Gov. Gretchen Whitmer's call to issue refunds to drivers in early November after reporting a $5 billion surplus.

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The MCCA surplus has nearly doubled since last year. Kevin Clinton, MCCA's director, says there are three reasons for this:

  • The new no fault reforms passed in 2019, which includes a fee schedule limiting how much healthcare providers can charge.
  • Investment returns from the fund outperforming estimates.
  • Fewer people driving during the start of the pandemic meant fewer catastrophic injury claims.

“DIFS stood with Governor Whitmer in calling upon the MCCA to return surplus funds to Michiganders with auto insurance, and we applaud the MCCA for taking the necessary next steps to deliver the largest refund possible to drivers while maintaining the viability of the fund,” said Anita Fox, director of the Michigan Department of Insurance and Financial Services (DIFS). 

“In the coming months, DIFS will work to ensure that refund checks are issued to Michigan consumers as quickly as possible.”

Refunds will be issued for each car insured with personal injury protection, regardless of the insurance provider. More information can be found here.

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