LANSING — Nearly a third of eligible drivers have already received their $400 auto refund checks from the state’s catastrophic fund surplus, and the rest should expect to receive their refunds by the May 9 deadline.

Where does the money come from?

The money comes from a surplus in the Michigan Catastrophic Claims Association (MCCA) fund. 

The MCCA, of which every insurance company that sells automobile or motorcycle coverage in Michigan is required to be a member, is funded by an annual premium assessment to each insurance company based upon the number of automobile and motorcycle policies written in Michigan.

As a result of policy changes put into place by the state’s new bipartisan auto insurance law, the MCCA catastrophic fund had a $5 billion surplus as of June 2021. But even with these reforms, Detroit continues to lead the nation in car insurance rates by several estimates, with Michigan still in the top most expensive states to insure a car.

In November 2021, Governor Whitmer called on the MCCA to return the maximum amount of surplus funds back to Michigan drivers and the state set a deadline for insurers to make the payments to drivers in checks and ACH transfers.

On March 9, the MCCA transferred $3 billion to the Michigan insurers responsible for issuing refunds to eligible drivers. The state’s Department of Insurance and Financial Services (DIFS) imposed a 60 day deadline for these payments to be made.

Insurers have till May 9 to send out checks, transfers to drivers

According to data gathered by the DIFS, more than $906 million of the total $3 billion in surplus funds has been returned to Michigan drivers.

To be eligible for a refund, Michiganders must have had a car, motorcycle or RV that was insured to drive legally on Michigan roads as of 11:59 p.m. Oct. 31, 2021. 

Auto insurers have until May 9 to deliver the remaining $2.1 billion via checks or deposit to eligible drivers.

The refunds are $400 per vehicle or $80 per historic vehicle and must be sent in the form of a paper check or an ACH deposit no later than May 9.

Drivers do not need to do anything to receive their refund, but they may wish to verify their address or banking information with their insurance company to prevent delays.

Eligible drivers who do not receive their refund on or before May 9, or whose insurer offers them a refund through something other than a paper check or ACH deposit, should contact their insurance company. 

If the driver cannot reach a resolution with their insurance company, they should call the DIFS at 833-ASK-DIFS Monday through Friday, from 8 a.m. to 5 p.m., for assistance or visit Michigan.gov/MCCArefund for more information.

“Ensuring that every eligible Michigander receives their refund check or ACH deposit as quickly as possible is a top priority for DIFS,” said DIFS Director Anita Fox.

Other things to note

All qualified vehicles are eligible to receive a refund regardless of the PIP medical coverage level chosen on the policy.

This refund does not impact the care auto accident survivors are entitled to under their auto insurance policy.

Insurers cannot use the refund toward a balance that a customer owes to them.

If someone from an insurance company calls to verify banking information to deposit the refund, the DIFS urges the driver contact their insurance company directly to verify the request for information and inquire how you can provide the information securely if it is necessary.

A full FAQ can be found at Michigan.gov/MCCArefund.