Governor Whitmer announces $400 per car in refunds for Michigan drivers

Michigan

California is home to some of the nation’s worst drivers, according to a recent study. (Getty Images)

LANSING, Mich. (WLNS) — Governor Gretchen Whitmer announced today refunds of $400 per vehicle will be given to Michigan drivers. Drivers are estimated to receive the checks in 2022. 

Whitmer made the announcement with the Michigan Department of Insurance and Financial Services (DIFS) and the Michigan Catastrophic Claims Association (MCCA) has taken action on the request to return surplus funds to Michigan policyholders.

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

Governor, Gretchen Whitmer

In November, Whitmer asked the MCCA to give out refund checks to consumers from its projected $5 billion surplus, which the MCCA then voted together on to issue.

“The Governor and I called for these refunds because we recognize that this surplus money belongs to Michigan drivers, and we need to put it back in their pockets,” said Lt. Governor Gilchrist. “These refunds are a major win for all drivers—especially Detroiters—who have paid the highest insurance rates in the nation for decades. There is still work to be done, and Governor Whitmer and I will continue to take action in the best interest of Michigan drivers.” 

Lieutenant Governor Gilchrist

The MCCA’s research discovered that an estimated $3 billion of the surplus could be returned to policyholders while ensuring continuous care for auto accident survivors.

The refund plan returns money to every Michigander with an auto insurance policy. The surplus funds will be turned over by the MCCA to the insurance companies operating in Michigan by March 9, 2022.

Additional information about the auto insurance reform law can be found at Michigan.gov/AutoInsurance.

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