Will You Be Getting a Michigan Auto Insurance Refund Check?
 Written by Richard Barrington Richard BarringtonRichard Barrington has over 20 years of experience in the investment management business and has been a financial writer... Read more |  Edited by Fran MajidiFran MajidiFran Majidi manages content on SmartFinancial's website. She's had nearly a decade's worth of experience writing about i... Read more |
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Here's a switch: after all these years of sending payments for auto insurance, now your car insurance company may be paying you back.
If you have a Michigan car insurance policy, you may be getting a $400 refund check from your insurance company in the weeks ahead. Your refund should be coming from the insurance company you had an active policy with at 11:59 pm on October 31, 2021.
This article will explain what you need to know about whether and how you'll be getting a $400 car insurance refund.
What Is the 2022 Michigan Auto Insurance Refund?
By state law, car owners in Michigan pay into a special insurance fund managed by the Michigan Catastrophic Claims Association (MCCA). This fund provides medical coverage for people who suffer severe injuries in car accidents.
Over time, that fund built up a large surplus. That means it had more than enough money to cover the claims it was likely to have to pay.
Late last year, the MCCA board decided to return $3 billion of that surplus to the people who had been paying into the fund. That's where this refund is coming from.
When that $3 billion is divided up amongst all eligible drivers, it amounts to a $400 refund on every car insurance policy.
Who Is Eligible for the 2022 Michigan Auto Insurance Refund?
If you had a vehicle insurance policy in Michigan as of 11:59 pm on October 31, 2021, you should be eligible for a refund.
Why such an exact time and date? Once the MCCA board decided to issue a refund, it picked a single time and date to determine eligibility so as to eliminate confusion among people who had changed insurance companies over time, and to prevent people from signing up for policies just to collect the refund.
Every vehicle with a policy that met Michigan's mandatory insurance standard as of 11:59 pm on October 31, 2021 is entitled to a refund. So, if you had two properly insured cars, you should be getting two $400 refunds.
Motorcycles and RVs are also eligible. Classic cars, which pay lower insurance rates due to limited use, are eligible for a lesser refund of $80.
Where Will My Refund Check Be Coming From?
Insurance companies take part of the premium from every insurance policy in Michigan and place it into the special insurance fund administered by the MCCA. So, the MCCA is issuing the refund to policyholders.
The MCCA's goal was to distribute the refund of its surplus to insurance companies by March 9, 2022. So, insurance companies should be starting to process refunds to their customers now.
These refunds may be issued by check or bank transfer.
Be wary of scams trying to get you to provide bank account information to receive your refund. Make sure you verify that you are dealing with an authorized representative of your insurance company before providing any information.
How Does This Affect My Auto Insurance?
This refund should not affect your auto insurance in any way. You are free to renew, amend or terminate the policy you have with your current insurance company, or switch to a new carrier. Since the date that determines eligibility for the refund has already passed, any such changes will not affect your refund.
Could You Be Saving More on Car Insurance?
The 2022 Michigan insurance refund is a special, one-time thing, but Michigan drivers could be saving money on their insurance every year. Just by shopping around, there's a good chance you will find the same coverage you have now at a cheaper price.
Why not see if there are better insurance rates out there for you? On average, people save up to 40% a year on car insurance by comparing rates. Just enter your zip code below and answer a few questions to get your free estimates now.
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Richard Barrington has over 20 years of experience in the investment management business and has been a financial writer for 15 years. Barrington has appeared on Fox Business News and NPR, and has been quoted by the Wall Street Journal, the New York Times, USA Today, CNBC and many other publications.
Prior to beginning his investment career Barrington graduated magna cum laude from St. John Fisher College with a BA in Communications in 1983. In 1991, he earned the Chartered Financial Analyst (CFA) designation from the Association of Investment Management and Research (now the "CFA Institute").
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