Home / Featured / Michigan drivers set to catch a break
Frank A. Douglass Insurance Agency

Michigan drivers set to catch a break

The Michigan Catastrophic Claims Association (MCAA) voted unanimously to grant Governor Gretchen Whitmer’s request to deliver refund checks to every Michigander with auto insurance earlier this week. Changes to Michigan’s insurance laws in 2019 revoked the requirement that unlimited coverage be provided for medical related to automobile accidents. That has helped to bring down premiums, but the adjustments were not enough. The catastrophic care fund currently has a $5 billion surplus.

Last year drivers got money back as the pandemic led to economic shutdowns and overall miles driven on Michigan roads cratered. State Farm agent Dean Kangas says his company is monitoring the situation, but they still do not have a lot of details as far as what the refund will look like or the amount. He expects it will be similar to the dividend that was issued for his customers in 2020.

An example, a hundred dollar dividend coming to you. Your premium is six hundred bucks. Your renewal premium was at six hundred but technically you only owed five hundred. The premium still stayed at six hundred but that dividend was applied and you only owed five hundred.

The full press release is below.


Governor Gretchen Whitmer and Department of Insurance and Financial Services Director Anita Fox released the following statement after the Michigan Catastrophic Claims Association (MCAA) voted unanimously to grant the governor’s request to deliver refund checks to every Michigander with auto insurance.

“As we continue to put Michiganders first, I am always working to find ways to lower costs and use every resource we have to help Michiganders thrive,” said Governor Whitmer. “It is great news that the Michigan Catastrophic Claims Association has swiftly taken action in response to my letter this week to begin the process of issuing refund checks to help drive down the costs and produce savings for Michiganders with auto insurance. Michiganders have paid into the catastrophic care fund for decades, and these funds from the $5 billion surplus belong in the pockets of Michigan policyholders.”

“I applaud the MCCA’s quick response to the Governor’s call for the MCCA to provide the maximum refund of its $5 billion surplus to Michigan policyholders while maintaining the viability of the fund for auto accident survivors,” said Director Anita Fox. “I urge the MCCA Board to act promptly to determine the amount of and process and timetable for expeditiously issuing refunds to all Michiganders with auto insurance.”

The refund is possible in part because of the historic, bipartisan auto insurance reform signed into law by the governor in 2019 and would return money to every Michigander with auto insurance.

Check Also

Troopers Ask for Help Locating Calumet Man

The search continues for a missing Calumet man. State Police investigators say 37-year-old Joshua Cotton …