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MCCA Votes In Support Of Issuing Refund Checks To Michiganders With Auto Insurance

On Wednesday, the Michigan Catastrophic Claims Association (MCCA) unanimously voted to support issuing refund checks to Michiganders with auto insurance.

MCCA states that details on the specific refund amount per vehicle, along with a proposed timeline and logistics, will be announced in the coming weeks.

According to MCCA, the goal is to, “issue the largest possible refunds to consumers while maintaining sufficient funds to ensure high-quality care to those who have been catastrophically injured.”

The vote comes after Monday to give out refund checks to every Michigander with auto insurance.

The refund is possible because of a bipartisan auto insurance reform that was signed into law in 2019, and would give a refund to every Michigander with auto insurance.

In May, Gov. Whitmer signed Senate Bill 1 into law, which instituted reforms to fix the state’s broken auto insurance system.

The bill saves Michigan 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.

“As we continue to put Michiganders first, I am always working to find ways to lower costs and use every resource we have to help Michiganders thrive,” said Governor Whitmer. “It is great news that the Michigan Catastrophic Claims Association has swiftly taken action in response to my letter this week to begin the process of issuing refund checks to help drive down the costs and produce savings for Michiganders with auto insurance. Michiganders have paid into the catastrophic care fund for decades, and these funds from the $5 billion surplus belong in the pockets of Michigan policyholders.”

“The Insurance Alliance of Michigan and our members strongly support the Michigan Catastrophic Claims Association’s efforts to put money back into the pockets of Michigan drivers,” said Insurance Alliance of Michigan Executive Director Erin McDonough. “It’s important for the MCCA board to do its due diligence and land on a refund amount that balances giving insured drivers back the money they deserve while protecting the longevity of a fund that pays for the cost of medical care for Michiganders seriously injured in car accidents.”

McDonough continued, “The fact the MCCA board is even considering this shows reforms passed with bipartisan support by the Legislature and signed into law by Gov. Gretchen Whitmer are working and delivering real savings to drivers across the state. We want to thank lawmakers for staying the course on reform so drivers can continue saving money on their car insurance.”

To read Governor Whitmer’s full letter to the MCCA, 

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