LANSING — This week, Governor Whitmer announced that the Michigan Catastrophric Claims Fund would issue $300 billion in refunds to Michigan drivers. The refunds will be delivered in the second quarter of 2022 and will be $400 per car registered in Michigan.
The refunds happened after Governor Whitmer called for the Fund to act after nearly doubling its surplus due to better than expected investment returns and savings realized from the 2019 passage of auto insurance reform signed by Governor Whitmer. After calling for the refunds, the Department of Insurance and Financial Services, known as DIFS, also weighed in with a statement of support.
On November 3, the Michgian Catastrophic Claims Association voted in favor of issuing the refunds. The checks will not come directly from the state but instead will be issued to drivers with a policy as of October 31, 2021 by the auto insurance company they have a policy with. Governor Whitmer reacted to the vote saying, “Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCAA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders.”
The Insurance Alliance of Michigan praised the move stating, “This refund adds to the mountain of evidence that reforms passed with bipartisan support by the Legislature and signed into law by Gov. Gretchen Whitmer are working and delivering real savings to drivers across the state.”
