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Michigan Car Insurance Refund: All The Info You Need

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Drivers who received a $400 Michigan car insurance refund from their insurers in 2022 may have to pay back some of it. According to a recent notice from the Michigan Catastrophic Claims Association, due to an anticipated shortfall, everyone will start paying a minimum of $48 and a maximum of $122 per car starting in July 2023. So, the Michigan Supreme Court will soon take up the car insurance issue. 

Drivers in the Great Lakes State received the Michigan car insurance refund this year due to a modification in the auto no-fault law. However, the insurers had to deposit the refund to the drivers’ accounts or mail a check by May 9. But, did you receive it? According to the Department of Insurance and Financial Services, if a driver qualifies for a refund and doesn’t receive it, they should contact the insurer. 

Keep reading to know more about Michigan car insurance refund. 

Save up to $971 while purchasing a Michigan car insurance policy

Why are Michigan drivers getting auto insurance refunds? 

After the states insurance associations decided to return approximately $3 billion of its surplus, Michigan residents received hundreds in refunds for each car. So, according to the Michigan Catastrophic Claims Association (MCCA), every car with insurance covered by October 31, 2021, receives a car insurance refund in Michigan 

After decades of Michigan drivers paying some of the highest auto insurance rates in the nation, the state’s auto insurance reform was passed into law in 2019 and is the cause of the refunds. The MCCA, led by the representatives of the insurance industry, is in charge of covering catastrophic medical expenses. The drivers received a refund from a fund made out of the driver surcharges. 

According to Michigan Governor Gretchen Whitmer, over a third of the $3 billion in Michigan car insurance refund checks had been given out to qualified citizens. 

Who qualifies for a Michigan car insurance refund? 

To qualify, a driver must have had a vehicle insured in Michigan as of October 31, 2021. In addition, the insurance coverage must satisfy Michigan’s minimum insurance requirements to drive on Michigan roads. So, those with Michigan car insurance refund qualifications who haven’t received it can ask their insurer for the $400 refund.  

All drivers who own a car, motorcycle, or RV insured before October 31 are eligible for the refund. The amount of money that drivers will earn is per covered car. For example, the owner would earn $800 if a household had two vehicles covered by the same insurance policy. 

Is Michigan car insurance refund applicable for historic vehicles? 

According to Michigan DIFS, the MCCA only assessed 20% of its usual assessment on historical cars. It is because of the their restricted permitted use of these cars. As a result, drivers will receive a refund of $80 if the car gets damaged by the applicable date. 

Will I get a refund even if I don’t have unlimited Personal Injury Protection (PIP)? 

Yes. All cars with a valid insurance policy will receive reimbursement by October 31, 2021, claims DIFS. Choosing a coverage other than ‘unlimited’ will not impact the refund amount. 

What should I do if I haven’t received my car insurance refund yet? 

According to the Michigan DFIS, if a person qualifies for a refund but doesn’t receive, they should contact the provider.  

Still, having issues with the refund? Then call DIFS at 833-ASK-DIFS (833-275-3437) Monday through Friday from 8 am to 5 pm for assistance, or visit the Michigan government website for more details.

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