Update: New Information on the $400 Per Vehicle Refund

There has been an update on the $400 per vehicle refunds. According to Gov. Gretchen Whitmer, the refund should arrive by May 9. You will not need to take any action and the process is expected to happen automatically if you had a policy in force as of October 31, 2021. 

If you have any questions, the Department of Insurance and Financial Services (DIFS) has created a page that answers frequently asked questions. You can find that here. 

As a refresher, Gov. Gretchen Whitmer’s plan to issue refund checks to Michigan drivers was approved during a recent November vote. The Michigan Catastrophic Claims Association (MCCA) finalized its plan to distribute these funds, which you can read more about in our post here.  

To summarize, the MCCA decided that of their $5 billion surpluses, about $3 billion was safe and able to be distributed back to policyholders. From there, it was determined that Michigan drivers who insured their vehicle by 11:59 p.m. on Oct. 31, 2021, will receive a $400 per vehicle refund. 

In a recent press release, Gov. Gretchen Whitmer and DIFS director Anita Fox announced that the MCCA will finish transferring the $3 billion surplus funds to Michigan’s auto insurers by March 9, 2022. Once this transfer process has been finalized, there is a 60-day deadline for auto insurers to send out the $400 per vehicle refund to eligible Michiganders. This will be no later than May 9, 2022. If you have any questions or concerns that can not be directly answered by your insurance carrier, please reach out to DIFS more information at 833-ASK-DIFS (833-275-3437) Monday through Friday from 8 a.m. to 5 p.m.

If you have a motorcycle or an RV, these are also eligible for the refund—so long as they meet minimum insurance requirements. According to DIFS, these vehicles will not receive a $400 refund if they are on a storage policy. 

Michigan is well known for its high insurance rates and this $400 refund will be quite welcome. If you would like a refresher on the last update to MCCA Policies, you can read our blog here that breaks down the basic changes. 

For FAQs about Michigan’s No-Fault Law, check out our blog here, or if you are unfamiliar with any insurance terms such as Personal Injury Protection Coverage (PIP) we also have a glossary. 

Updated March 10, 2022 at 5:30 P.M.