Whitmer Says Michigan Drivers Will Receive a $400 Insurance Refund for Each Vehicle

Photo: JIM WATSON / AFP via Getty

LANSING, December 8, 2021 ~ Tuesday, Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services announced that all Michigan auto insurance policyholders will receive a $400 per-vehicle refund in 2022.

Insured motorcycles are also eligible for the full $400 refund.

According to a news release from Governor Whitmer, each driver is expected to receive a check in the second quarter of 2022.

Because of no-fault reform, beginning in July of 2020, drivers were presented with the opportunity to select lower PIP (Personal Injury Protection) limits, prior to that it was unlimited lifetime medical benefits,” said Kleinschmidt Agency President Emily Bourne to 760 WJR‘s Kevin Dietz. “So you have got a situation where you have a bunch of drivers paying into a fund who no longer are going to be receiving the benefits of that fund — in the event that they choose to buy down because of the no-fault auto reform.”

December 8, 2021 ~ Kleinschmidt Agency President Emily Bourne talks with Kevin Dietz about the Michigan Catastrophic Claims Association’s move to put money back into the pockets of Michigan drivers.

This comes after the Governor called for refunds on November 1, saying the Michigan Catastrophic Claims Association (MCCA) had surplus funds that had grown to $5 billion since she signed auto insurance legislation into law. The law intended to lower premiums and gives options of reduced medical coverage while reducing medical fee schedules for long-term care.

These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver,” said Whitmer in the release. “Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders.”

December 7, 2021 ~ WJR Senior News Analyst Lloyd Jackson talks with Guy Gordon about drivers receiving a $400 refund from the Michigan Catastrophic Claims Association.

This comes after the Governor called for refunds on November 1, saying the Advocates for auto-accident victims have spoken out against the plan, saying it will take away funds intended to pay for the care of severely injured residents who are suffering under the new legislation.

Republicans and their supporters have accused Whitmer of playing politics, claiming she is trying to issue the refunds just before the November 2022 gubernatorial election to get votes.