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Michigan auto insurers will begin issuing $400 refunds

March 7, 2022 GMT

LANSING, Mich. (AP) — Michigan drivers with auto insurance will soon starting getting previously announced $400 refunds per vehicle.

Gov. Gretchen Whitmer and the state’s top insurance regulator said Monday that a $3 billion transfer of surplus funds from the Michigan Catastrophic Claims Association to car insurers will be completed this week. The companies will have 60 days to issue the refunds — no later than May 9.

The state said eligible consumers who do not get refunds should contact their auto insurer or agent. Those who are unable to resolve questions or concerns can contact the state Department of Insurance and Financial Services.

The catastrophic care fund, which reimburses insurers medical and other costs for people seriously injured in crashes, is funded with an annual per-car fee that became optional under a 2019 law. The governor has attributed the surplus and refunds in part to the law that also curbed or cut what health providers and home aides can charge auto insurers, which said they were being gouged.

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Critics say the slashed reimbursements have led to injured motorists losing quality care and access to care.

The law requires refunds, though Whitmer — who is up for reelection — successfully requested that they be issued sooner than required. She sought a $5 billion refund. The association agreed to a $3 billion refund.