Michigan Drivers Will Receive Refunds for Car Insurance Fees
Alexandra Maloney
· 3 min read
It’s a good day for
Michigan
drivers. On Nov. 3, the Michigan Catastrophic Claims Association announced in conjunction with Gov. Gretchen Whitmer that it would be issuing refund checks for car insurance
fees to Michigan drivers, according to Michigan Live
. If you have a Michigan driver’s license and pay car insurance in the state, we’ve got you covered on all the details of the refund check that could be in your hands soon.
Why are Michigan drivers getting car insurance refunds?
In Michigan, all drivers pay into the Michigan Catastrophic Claims Association (MCCA), which is a nonprofit established by the state of Michigan that covers all drivers for personal injury protection, since Michigan has a no-fault system in these cases.
When Gov. Whitmer noticed that the organization had a $5 billion surplus, she requested the money be used to pay back Michigan residents who have paid into the fund. A spokesperson for Gov. Whitmer said that the governor was requesting “the maximum amount possible be paid back, while still maintaining the viability of the fund.”
In early November, the board of the organization voted unanimously in favor of Gov. Whitmer’s request.
What are the details?
Currently, the MCCA hasn’t announced details like the exact amount that will be awarded to drivers or the timeline in which refunds will be issued. But, if the entire $5 billion surplus was paid out, it could mean a refund of up to $676 per registered vehicle in Michigan.
After the decision was announced, Gov. Whitmer said it was “great news” and that the surplus funds belonged in the pockets of Michigan drivers, after they’d spent countless years paying into the fund to ensure coverage in the state.
Where does the fee for the MCCA go?
The MCCA collects a designated amount per vehicle each year for every registered vehicle in the state. In 2019, the fee was $220, but dropped to $86 in 2020. These fees are put into premiums for personal injury coverage for drivers.
Prior to 2020, all Michigan drivers were required to purchase the maximum amount of personal injury coverage and pay into the fund. As of 2020, drivers can opt for a lower amount of coverage and don’t need to pay into the fund unless there’s a surplus.
What is personal injury protection?
Personal injury protection
(PIP) helps pay for medical expenses, lost wages, and other unexpected costs after a car accident
. This type of coverage is usually organized by a fund that all drivers put money into when a state requires it. When a car accident occurs, money can be taken out of the fund to pay for things like medical expenses, child care, lost wages, funeral costs, or survivor’s cost.If your state doesn’t require PIP, you can still purchase it in addition to other forms of
car insurance
. In this case, use Jerry
to help you find the best rates on PIP, as well as your other car insurance needs. 
