MI drivers have begun seeing $400 car insurance refunds: Here’s what to know

LANSING — Nearly a third of eligible drivers have already received their $400 auto refund checks from the state’s catastrophic fund surplus,

And the rest should expect to receive their refunds by the May 9 deadline.

The MCCA, of which every insurance company that sells automobile or motorcycle

coverage in Michigan is required to be a member, is funded by an annual premium assessment to each insurance compan

Based upon the number of automobile and motorcycle policies written in Michigan.

As a result of policy changes put into place by the state’s new bipartisan auto insurance law, the MCCA catastrophic fund had a $5 billion surplus as of June 2021. 

But even with these reforms, Detroit continues to lead the nation in car insurance rates by several estimates, with Michigan still in the top most expensive states to insure a car.

In November 2021, Governor Whitmer called on the MCCA to return the maximum amount of surplus funds

Back to Michigan drivers and the state set a deadline for insurers to make the payments to drivers in checks and ACH transfers.

On March 9, the MCCA transferred $3 billion to the Michigan insurers responsible for issuing refunds to eligible drivers.

The state’s Department of Insurance and Financial Services (DIFS) imposed a 60 day deadline for these payments to be made.

According to data gathered by the DIFS, more than $906 million of the total $3 billion in surplus funds has been returned to Michigan drivers.

Auto insurers have until May 9 to deliver the remaining $2.1 billion via checks or deposit to eligible drivers.

To be eligible for a refund, Michiganders must have had a car, motorcycle or RV that was insured to drive legally on Michigan roads as of 11:59 p.m. Oct. 31, 2021. 

The refunds are $400 per vehicle or $80 per historic vehicle and must be sent in the form of a paper check or an ACH deposit no later than May 9.