Whitmer-Backed $400 Car Insurance Refunds Begin ArrivingWhitmer: “Michigan used to have the highest auto insurance rates in the nation but we worked together to put Michiganders first.”

By Main Street Sentinel Staff

On November 1, 2021 Governor Gretchen Whitmer called for billions of dollars to be given back to Michigan’s motorists.

The money “belongs to Michiganders and should be put in people’s pockets,” Whitmer said at the time.

Now, drivers are getting their $400 checks.

The refunds are drawn from a surplus in the Michigan Catastrophic Claims Association (MCCA) Fund, first created when Governor Whitmer signed major auto insurance reform legislation into law with the support of Republican and Democratic legislators back in 2019.

The MCCA fund, drawn from surcharges paid by insured motorists, is designated to pay for catastrophic care for Michigan drivers. The fund, with total assets of more than $27 billion, has seen its surplus more than double in the last year, from $2.4 billion at the end of 2020 to $5 billion as of June 30, 2021.

“Michigan used to have the highest auto insurance rates in the nation,” Whitmer said in a statement, “but we worked together to put Michiganders first, significantly lowering the cost of insurance and putting $400 per vehicle back in driver’s pockets while continuing to provide access to the most generous benefits in the nation.”

The refunds will go to policyholders for every vehicle that was insured as of 11:59 p.m. on Oct. 31, 2021. Surplus funds will be transferred to the MCCA by insurers by March 9 for refunds via check or ACH deposit.

According to the state, the refunds have to be issued no later than May 9, 2022.