When To Expect Insurance Refund In Michigan – LANSING — The state of Michigan has announced a new consumer site for residents to learn about upcoming $400 car insurance reimbursement checks, for which the state has set a May 29 deadline for insurers.
The state also launched a consumer FAQ page at Michigan.gov/MCCArefund. The website contains important information and answers common questions about refund timelines and eligibility requirements, and tells customers what they can do if they have questions or concerns about their refund.
When To Expect Insurance Refund In Michigan
A reimbursement plan issued by the Michigan Catastrophic Claims Association (MCCA) will result in a $400 reimbursement being sent to policyholders for each insured vehicle as of 11:59 p.m. On October 31.
Every Single Michigan Driver Is About To Get $400 In The Mail
The Michigan Department of Insurance and Financial Services (DIFS) has issued a bulletin to Michigan insurers regarding the deadline. The bulletin directs insurers to make refunds to consumers by check or ACH deposit as soon as possible, but in no case after May 9.
“The DIFS bulletin ensures that consumers are protected and sets a May 9, 2022 deadline for refunds for all eligible drivers,” said state insurance director Anita Fox. “Our goal is to make sure this money gets into the pockets of Michiganders as quickly and safely as possible.”
Last week, Governor Whitmer announced that all drivers will receive a $400 refund as a result of an increase in the Michigan Catastrophic Claims Association (MCCA) fund.
The money — totaling $3 billion — comes from additional funds Michigan motorists pay into the MCCA, an unincorporated nonprofit association created in 1978 by the Michigan Legislature. Every insurance company that sells auto or motorcycle coverage in Michigan requires a member.
Michigan’s Drivers Will Receive Refund Checks
After Michigan changed its auto insurance laws to give drivers the ability to choose injury coverage levels, the state said the MCCA has more than $5 billion in excess claims that drivers can recover.
MCCA’s analysis determined that approximately $3 billion in surplus could be returned to policyholders by ensuring continuity of care for auto accident survivors.
The Whitmer administration has claimed that the state’s new insurance law means big savings for drivers, but critics point out that those reduced rates come at the cost of lower insurance payments for health care coverage in the event of an injury. from an accident.
The new law also aims to increase consumer protection by prohibiting companies from using non-driving factors to set rates, such as zip code, credit score, gender, marital status, occupation, educational attainment and home ownership.
Two Thirds Of Michigan Drivers Still Haven’t Got Their $400 Insurance Refund
But Detroit and surrounding densely populated cities like Dearborn and Hamtramck continue to see some of the highest rates in the country. Auto insurers in Michigan should expect a refund of $400 per vehicle after May 9, 2022, the Whitmer administration said. (Ayman Haikal/Shutterstock.com)
May 19: Michigan Republicans OK $2.7 billion in tax cuts. Whitmer is asking for a $500 discount. April 14: Two-thirds of Michigan drivers still haven’t received their $400 insurance refund
LANSING – Michigan has begun distributing $400 in auto reimbursements to insured drivers with checks not due until May 9, the Whitmer administration announced Friday.
Gov. Gretchen Whitmer, who requested the reimbursements from the Michigan Catastrophic Claims Association in November, confirmed Friday that the reimbursements have begun to be distributed.
Drivers In This State Will Receive A $400 Car Insurance Refund Check
Anyone with a vehicle, motorcycle or RV insured by a policy that allows operation in Michigan through October 31, 2021 is eligible for a refund.
The refunds are part of the 2019 auto insurance reform — negotiated between Whitmer and the Republican-led Legislature — that was designed to lower the nation’s highest rates by ending mandatory lifetime coverage for car accident victims and create new tariff limits. medical treatment.
“And starting this week, because of that reform, Michigan residents are getting a reimbursement check of $400 per vehicle for every insured driver, which puts money in people’s pockets,” Whitmer said. “We will continue to work to save Michiganders money so they can pay their bills and put food on the table.”
Anita Fox, director of the Michigan Department of Insurance and Financial Services, said auto insurers will automatically send reimbursements — as a check or direct deposit — to eligible drivers.
Is There Going To Be A 2022 Michigan Auto Insurance Refund?
“If you’re eligible for a refund, your auto insurance company will send it to you automatically and you don’t need to take action. Inaccurate information can cause delays, so drivers want to make sure their insurer has the address their current and information banks, Fox said in a statement.
Fox also warned executives to be wary of potential scams, such as scammers calling customers to ask for private information.
“No one should call you asking for your personal information to get your refund, and if you do get one — call to verify the legitimacy of the call and call your insurance agent or company directly,” Fox said.
Oak Park resident Jack Schlau said he hasn’t received the refund yet, but will reinvest it in future vehicle payments.
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“(My husband) and I want to buy a house as soon as possible,” Abendroth said. “We’ve been saving for a while and we’re very close to getting a good down payment on one. $400 would be nice to add to that.
Eligible drivers who have not received their refunds by May 9 should contact their auto insurance company or agent, state officials said.
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Catch: Michigan drivers to get insurance refunds – what you need to know Michigan Catastrophic Claims Association votes to support governor’s demand for auto insurance refunds
Michigan Car Insurance Refund Checks Coming: What You Need To Know
Insured Michigan drivers will receive auto insurance refunds after Gov. Gretchen Whitmer called on the Michigan Catastrophic Claims Association to redistribute funds from its $5 billion surplus back to the public.
Update Dec. 7: Michigan drivers to receive $400 refund check in 2022 – check expected in second quarter of 2022; $400 per vehicle
Earlier this week, Whitmer sent a letter to the MCCA calling on the nonprofit to reimburse insured drivers as soon as possible after the group reported a $5 billion surplus in June. Association members voted unanimously Wednesday to support Whitmer’s request.
“Get Catch Up” is a roundup of Saturday’s news to help readers understand the week’s biggest stories.
Michigan Drivers Could Begin Seeing $400 Per Vehicle Refunds As Soon As This Week
In Whitmer’s letter sent Monday to the MCCA, the governor said the association reported a $2.4 billion surplus at the end of 2020, and now the surplus is up to $5 billion. She is calling on the association to deliver reimbursement checks to all Michigan residents with auto insurance.
“The over $5 billion surplus accumulated by the MCCA belongs to Michiganders and should be put in people’s pockets immediately with refund checks,” Whitmer said. “As we remain focused on growing our economy and ushering in a new era of prosperity, we must use every resource we have to help people thrive. Reimbursement checks for working families will help us put Michiganders first and keep costs down.
MCCA is a private, non-profit organization established in 1978 by the Michigan Legislature. It aims to limit no-fault insurers from exceeding $600,000 in medical personal injury protection (PIP) claims until auto insurance reform comes into effect in 2020. It is used to require drivers to pay a unique annual fee for vehicle for unlimited health coverage until passed.
Michigan law no longer requires owners and registrants to purchase unlimited lifetime coverage for medical expenses resulting from motor vehicle accidents.
Grand Valley Lanthorn Vol. 56 No. 26 By Grand Valley Lanthorn
MCCA evaluates all auto insurance companies operating in Michigan that cover catastrophic medical claims resulting from auto accidents in the state. Insurance companies typically pass that assessment on to their auto insurance policyholders, currently costing them $86 per vehicle.
MCCA said in a statement on Wednesday, “Details of the exact refund amount per vehicle along with the proposed timeline and logistics will be announced in the coming weeks. “The goal is to provide the highest possible reimbursement to consumers while maintaining sufficient funds to ensure the highest quality of care for those who are catastrophically injured.”
By law, the MCCA must be audited starting next year and every third year by an independent actuary appointed by the state director of insurance. If the next review, which is expected in September, shows that MCCA’s assets exceed 130% of its liabilities, the difference will have to be refunded.
“If we were to create the formula in the statute and apply it to today’s numbers, that would mean about $100 per car,” said MCCA executive director Kevin Clinton.
Still No Fourth Stimulus Check, But You Might Get A $400 Insurance Refund
While the association supports defunding Michigan policyholders, members believe Whitmer is asking for too much money and too quickly.
“It is important that the MCCA board does its due diligence and arrives at a reimbursement amount that balances the return to insured drivers.