Michigan drivers are about to get $400 refunds for every car they own

Consumers will start receiving the money in March

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Carrie PallardyContributing ReporterCarrie Pallardy is a contributing reporter at Policygenius, where she covers insurance and personal finance news. Her work has also appeared in the Chicago Tribune and Saving For College.

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If you live and drive in Michigan, you could be eligible to receive a $400-per-vehicle refund from your auto insurance company. The Michigan Catastrophic Claims Association announced the refund last year, and consumers will start receiving the money in March. Here’s what you need to know.

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Who is eligible for the Michigan auto insurance refund?

If you're a Michigan driver who had car insurance as of Oct. 31, 2021, you will receive a refund from your car insurance company. Refunds will add up to $400 per insured vehicle. Drivers will receive a refund of $80 per historical vehicle.

When will the insurance refunds arrive?

Insurance companies are sending refund checks or electronic deposits beginning in March. You can expect to receive your refund by May 9, according to the Michigan Department of Treasury. 

Why are you receiving an auto insurance refund check?

In Michigan, there are no maximum limits on necessary medical expenses paid by no-fault car insurance policies. The state created the Michigan Catastrophic Claims Association, to manage the cost of this benefit. Each year, the association determines the amount of money needed to cover lifetime claims for people injured in car accidents and calculates a per vehicle assessment.  

But the association has savings to spare, and is now giving some back. In November 2021, the association voted that it would give $3 billion surplus funds back to auto insurers, which will in turn pass that money back to Michigan policyholders.

These refunds are part of Michigan Gov. Gretchen Whitmer’s efforts to lower costs for Michigan drivers. 

"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. We are working together to put Michigan drivers first, and I am directing DIFS [Department of Insurance and Financial Services] to ensure that the MCCA and Michigan's auto insurance companies accurately, fairly, and promptly issue these refunds,” she said in a press release.

What if you have questions about your refund?

You should not have to take any action to receive your refund if you are eligible. If you have questions about your refund or you do not receive it by May 9, you can reach out directly to your car insurance company. You can also contact the state department of insurance.

What other kinds of refunds can you get on your car insurance?

If you decide to cancel your current car insurance and choose another policy, you could get a refund on your auto insurance premium. Most insurance companies will refund policyholders who have paid in full the remaining months on a canceled policy.

It's also possible to receive a refund on your car insurance if you make changes to the policy. For example, if you remove a driver from the policy, your premiums will go down. If you paid for the policy in full, you could get a partial refund.

If you're considering shopping for car insurance, check out some of the best options in Michigan.

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