Governor Gretchen Whitmer has called on the Michigan Catastrophic Claims Association (MCCA) to give out refund checks to every Michigander with auto insurance.
“The over $5 billion surplus accumulated by the MCCA belongs to Michiganders and should be put in people’s pockets immediately with a refund check,” said Governor Whitmer. “As we stay-laser focused on growing our economy and ushering in a new era of prosperity we need to use every resource we have to help people thrive. A refund check to working families will help us continue to put Michiganders first and drive down costs.”
The refund is possible because of a bipartisan auto insurance reform signed into law in 2019, and would return money to every Michigander with auto insurance.
In May 2019, Governor Whitmer signed Senate Bill 1 into law, which instituted reforms to fix Michigan’s broken auto insurance system.
The bill saves drivers money by:
- Guaranteeing lower rates for drivers for eight years
- Giving Michiganders the choice to pick their own Personal Injury Protection (PIP) options with coinciding PIP rate reductions, offering unlimited coverage (at least 10% PIP reduction), $500k coverage (at least 20% PIP reduction), $250k coverage (at least 35% PIP reduction)m $50k coverage for Medicaid eligible recipients (at least 45% PIP reduction) or a complete opt out for seniors or anybody with sufficient private insurance (100% PIP reduction).
- Increasing consumer protections by banning companies from using non-driving factors to set rates, including: zip code, credit score, gender, marital status, occupation, educational attainment, and homeownership.
- Setting fee schedules for hospitals and providers to prevent overcharging for auto-related injuries.
To read Governor Whitmer’s full letter to the MCCA,
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