Lansing – Drivers are days away from receiving $400 reimbursement checks as the Michigan Catastrophic Claims Association plans this week to complete the transfer of $3 billion in excess funds to auto insurers in the state.
In a statement on Monday, Governor Gretchen Whitmer’s administration said the checks, first announced in December, “will arrive in mailboxes starting this week.”
Insurers must send reimbursements of $400 per vehicle by May 9. The money is expected to be distributed to drivers through paper checks that will be mailed or deposited directly into accounts.
“I requested these refunds because I am committed to reducing costs for the people of Michigan and putting money back in people’s pockets,” Whitmer said. “They are possible because we worked across the aisle to pass bipartisan auto insurance reform, and we will continue to work together to grow our economy and build a state where families can thrive. “
In November, the Democratic governor called on the MCCA to issue refund checks to distribute its $5 billion surplus. Under state law, the MCCA levies an assessment each year to cover claims for those catastrophically injured in motor vehicle accidents.
The organization’s analysis found that about $3 billion of the excess could be returned to policyholders. The MCCA has sought “to issue the largest possible reimbursement to policyholders while maintaining sufficient funds to ensure continuity of care,” says a letter from Kevin Clinton, executive director of the association.
The excess money will be released by the MCCA to insurance companies operating in Michigan this week, and insurers are responsible for issuing checks to eligible policyholders.
The Michigan Department of Insurance and Financial Services has previously said it expects insurers to directly transfer returned excess to policyholders in a single lump sum of $400 per vehicle and $80 per historic vehicle.
“Our goal is to make sure Michigan residents understand the eligibility criteria and to get that money into consumers’ pockets as quickly and safely as possible,” said Anita Fox, department director. . “DIFS is ready to answer questions or help resolve any concerns Michiganders may have regarding their refunds.”
The money will go to every Michiganian with an in-force auto insurance policy beginning at 11:59 p.m. Oct. 31.
Eligible consumers who do not receive their refund by the May 9 deadline should contact their auto insurer or agent, DIFS said Monday.
The MCCA’s surplus fell from $2.4 billion at the end of 2020 to $5 billion as of June 30. The estimated surplus resulted from savings resulting from the 2019 Michigan No-Fault Insurance Law reforms and higher-than-expected investment returns.