Michigan’s $400 auto refund must be issued by May 9

(The Center Square) – Gov. Gretchen Whitmer’s office issued a May 9, 2022, deadline for the $400 per vehicle auto insurance refund.

The Michigan Department of Insurance and Financial Services (DIFS) has issued a bulletin to Michigan’s insurers and launched a consumer FAQ page to inform insurers and consumers of the timeline and other requirements for Michigan’s upcoming $400 per vehicle auto insurance refunds.

The refund via the surplus was announced last week by the Michigan Catastrophic Claims Association (MCCA) fund upon Whitmer’s request.

“Michigan used to have the highest auto insurance rates in the nation, but we worked together to put Michiganders first, significantly lowering the cost of insurance and putting $400 per vehicle back in driver’s pockets while continuing to provide access to the most generous benefits in the nation,” Whitmer said in a statement. “I am pleased with how quickly the plan was developed and appreciate the clear guidance provided both to insurers and consumers. The bulletin and website lay out the timeline and requirements so that insurers understand that they must process the refunds as quickly as possible, and Michiganders know when and how they will get the surplus money they are owed.”

The MCCA refunds were possible by the cost-saving and fraud prevention provisions of the historic, bipartisan auto insurance reform Whitmer signed into law in 2019. The MCCA’s refund plan will send $400-per-vehicle refunds to policyholders for every vehicle that was insured as of 11:59 p.m. on Oct. 31, 2021. Surplus funds will be transferred by the MCCA to insurers by March 9, and the new DIFS bulletin directs insurers to issue refunds via check or ACH deposit to consumers as soon as possible, but no later than May 9, 2022.

“The Governor directed DIFS to take an active role in ensuring that refunds would be issued expeditiously to Michiganders who have paid into the fund for decades,” DIFS Director Anita Fox said in a statement. “The DIFS bulletin ensures that consumers are protected and imposes a May 9, 2022 deadline for issuing refunds to all eligible drivers. Our goal is to make sure that this money makes it to the pockets of Michiganders as quickly and securely as possible.”

The DIFS has also launched a consumer FAQ page at Michigan.gov/MCCArefund. Additional information about the auto insurance reform law, including the amnesty period that allows uninsured drivers to get penalty-free auto insurance if they apply for coverage before January 1, 2022, can be found at Michigan.gov/AutoInsurance.

Consumers with questions or concerns about auto insurance can contact DIFS by calling Monday through Friday 8 a.m. to 5 p.m. at 833-ASK-DIFS (833-275-3437) or by emailing [email protected].

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