Governor Whitmer announced on Tuesday, Dec. 7, that $3 billion in refunds from the surplus of the catastrophic care fund will be returned to Michigan drivers in her latest press release.
Michigan drivers can expect a refund of $400 per vehicle, including insured motorcycles as well, and many will begin to receive checks in the second quarter of 2022.
Whitmer worked alongside the Michigan Department of Insurance and Financial Services (DIFS) and the Michigan Catastrophic Claims Association (MCCA) to develop the return policy and to administer these refunds to Michigan drivers.
“Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders,” Whitmer said. “We are working together to put Michigan drivers first, and I am directing DIFS to ensure that the MCCA and Michigan’s auto insurance companies accurately, fairly, and promptly issue these refunds.”
Michigan has one of the highest car insurance rates in the country. A large component of this was due to the fact that in the past, Michigan required all drivers to buy unlimited Personal Injury Protection into their insurance plans.
Despite auto insurance reforms that were passed in July, 2020 to eliminate the required unlimited PIP to help reduce the cost of insurance for drivers, Michigan auto insurance still remains one of the highest in the country.
These refunds will be redistributed to Michigan drivers who have an auto insurance policy in force by 11:50 p.m. on Oct. 31, and the individuals who meet this requirement will not have to take action to receive a refund.
MCCA’s policy to return the surplus funds to Michigan drivers comes after Whitmer called upon the MCCA to provide refunds after noting that the fund had increased by $3 billion since 2019, in which Whitmer had approved and implemented an auto insurance bill that lowered premiums and provided affordable medical coverage.
“These refunds are a major win for all drivers—especially Detroiters—who have paid the highest insurance rates in the nation for decades,“ Lt. Governor Gilchrist said. "There is still work to be done, and Governor Whitmer and I will continue to take action in the best interest of Michigan drivers."