Skubick: Governor, state lawmakers push for auto insurance refund

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LANSING, Mich. (WLNS) – Michigan motorists may be in line for a hefty refund on their auto insurance, but as 6 News capitol correspondent Tim Skubick reports, just because the governor is calling for it, that does not necessarily mean drivers will get it.

When Governor Gretchen Whitmer signed the new no fault car insurance law, she and the legislature promised in law that there would be a savings for Michigan motorists.

The Governor in her news release is calling on a state agency to refund $5 billion which would be a check of $694 for every driver on the road.

The state agency is called the Michigan Catastrophic ClaimsFund with an executive board of five insurance companies, and it reports its surplus has doubled over last year.

Former GOP State Senator Peter Lucido tried to squeeze money out of the fund and failed. He agrees with the governor’s move and argues if the board doesn’t release the money, that would be grossly irresponsible.

“Not only is it irresponsible, it borderlines in saying we are looking at our leaders to do a job and if they don’t perform, then we can do without their leaders and get new leaders in there,” said Lucido.

Meanwhile, the GOP chair of the House Insurance committee is all in.

“I am not always a big fan of the Governor, but on this, it makes sense. Drivers in Michigan have paid the highest rates in the nation,” said House Insurance Chair State Rep. Daire Rendon.

“You would be a yes vote if this had to go through the legislature?” asked Skubick.

“Yeah. I would be a yes vote,” said Lucido.

The lobby group for insurance companies has endorsed the rebate, saying it is part of the law that surpluses should be returned to the drivers.

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