Michigan House Republicans
Rep. Martin: Michigan drivers to get $400 refund checks, a result of Legislature’s car insurance reforms
RELEASE|December 8, 2021
Contact: David Martin

State Rep. David Martin today said Michigan drivers will soon receive a refund of $400 per insured vehicle from the Michigan Catastrophic Claims Association.

The refund is a direct result of historic car insurance reforms approved by the Legislature in 2019.

“This is the clearest sign yet that our car insurance reforms are saving people money,” said Martin, of Davison. “Michigan drivers paid far too much for car insurance for far too long. They deserve this refund.”

Since the reforms took effect in 2020, only Michigan drivers who select unlimited lifetime personal injury protection (PIP) benefits pay into the MCCA, which was created to cover unlimited lifetime medical benefits for people injured in motor vehicle crashes. The reforms also control costs by preventing hospitals and providers from overcharging for auto-related injuries.

Before approving the plan, House Republicans included a requirement for the MCCA to conduct an audit and refund drivers for surpluses when the fund is covering more than 120% of its projected liabilities.

After an audit identified a projected surplus of $5 billion, the MCCA’s analysis determined that approximately $3 billion of the surplus could be returned to policyholders while ensuring continuity of care for auto accident survivors. About 40% of the surplus will remain.

“The reforms to our insurance law are still new, and it’s important to make sure enough remains in the MCCA fund to provide care for car insurance victims with catastrophic injuries,” Martin said. “Because this refund is coming sooner than required by law, it makes sense to reserve some of the surplus to ensure victims receive the long-term care they need.”

The refund plan submitted to Michigan Department of Insurance and Financial Services on Monday by the MCCA will return money to every Michigander with an auto insurance policy in force as of 11:59 p.m. on Oct. 31, 2021. Drivers are expected to receive the checks in the second quarter of 2022.

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