Auto insurance

Michigan auto insurance reimbursement deadline next week; 2.2 billion dollars already donated to drivers

As the deadline for Michigan auto insurance reimbursement checks to reach drivers approaches, the state reports that $2.2 billion in reimbursements have been issued. That’s about three-quarters of the estimated $3 billion in scheduled refunds.

For all drivers whose vehicle was insured by the end of October 2021, they should receive their $400 reimbursement check in the mail or by direct deposit by May 9.

A statement from the state and the Department of Insurance and Financial Services reports that $1.2 billion has been sent by insurance companies to drivers in the past two weeks alone.

“Thanks to the bipartisan auto insurance reform I signed, nearly $2.2 billion has been put back into people’s pockets and another $800 million is yet to come,” Governor Gretchen Whitmer said. . “Car insurers have one more week to issue remaining refunds to eligible drivers, so if you haven’t received your money yet, be sure to keep an eye on your mailbox or bank account. These refunds will help families to pay the bills and put food on the table as we continue to grow our economy, create more good-paying jobs and cut costs.”

As long as drivers check their mailboxes for envelopes addressed by their insurance companies, they have nothing else to do.

The state announced that $900 million was returned to Michigan drivers on April 14, just over a month after the funds were initially transferred to affected insurance companies. It was just under a third of the estimated $3 billion that was to be returned to drivers.

The $400 refund checks issued to drivers are for those whose vehicle was insured before Oct. 31, 2021. The refund is part of bipartisan auto reform legislation passed in 2019 that requires the Michigan Catastrophic Claims Association (MCCA) to remit money to Drivers.

The MCCA reported a $5 billion surplus before the governor announced the amount of funds that would be returned to drivers. The organization had until March 9 to forward the funds to the insurance companies, which then had about 60 days to deposit or return the checks to the drivers.

Refunds must be issued this way. They can’t be applied as money toward a balance owing on a plan, and insurance companies can’t issue gift cards or offer future discounts in lieu of payment.

If an insurance company attempts to do so, it can be reported here.

The auto reform legislation was signed into law in the summer of 2019, following years of Michigan reporting some of the highest auto insurance rates in the nation.

Part of the reform package allowed drivers to choose reduced coverage under the Personal Injury Protection category of their plan. Before the reform, drivers had no choice when choosing their PIP rate. Reform efforts have come under intense scrutiny from victims involved in crashes who fear losing their care.

Are owners of motorcycles and motorhomes eligible?

Anyone who has insured their vehicle – be it a car, truck, motorhome or motorbike – before 11:59 p.m. on October 31, 2021, is eligible for a refund.

The amount of money drivers will receive is per vehicle covered by a plan. If a household owns two vehicles under the same insurance plan, the owner would receive $800.

Will drivers who have not selected unlimited PIP still get a refund?

Yes. According to the DIFS, all vehicles with an appropriate insurance plan by October 31, 2021 will receive a refund.

While the reforms have opened up the option for drivers to pay less for reduced Personal Injury Protection coverage, selecting one of the available options other than ‘unlimited’ will not affect the amount of reimbursement. .

Are there reimbursements for insured historic vehicles?

The MCCA only charges 20% of its typical assessment for historic vehicles due to their limited permitted use, DIFS says. As long as the vehicle was injured in a timely manner, drivers will get an $80 refund.

DIFS has also created an FAQ site that drivers can consult if they have any questions.

Any drivers who are eligible to receive a refund but do not receive a check by the May 9 deadline can contact their insurance company with any questions. They can also contact the insurance department with any concerns Monday through Friday from 8 a.m. to 5 p.m. at 833-ASK-DIFS (833-275-3437) or by emailing [email protected]

What about refunds for trailers?

Trailers are not subject to MCCA appraisal and are not eligible for a refund.