A total of $5 billion in Catastrophic Claims Fund surplus will be distributed in $400 checks to Michigan drivers, according to Car and Driver.
All Michigan drivers insured through any company, as long as they have personal injury protection coverage, will receive a refund check.
“These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver,” Gov. Gretchen Whitmer (D) told ABC13. “Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA (Michigan Catastrophic Claims Association) 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 (Department of Insurance and Financial Services) to ensure that the MCCA and Michigan’s auto insurance companies accurately, fairly and promptly issue these refunds.”
The refund checks are projected to be distributed in the second quarter of 2022, according to Car and Driver.
The refund comes after Michigan drivers have notoriously paid the highest insurance rates in the country for decades. The reason for that is that Michigan has had a mandatory unlimited personal injury protection requirement on its car insurance since the 1970s. That requirement was overturned in July of 2020.
Owners of vehicles that have "historical vehicle" plates, however, will receive only $80 refunds.
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