Michigan Drivers Are Looking at a Nice Lump Sum From Car Insurance Companies

Find out if you're getting ripped off on your car insurance in less than two minutes.
Find insurance savings (100% Free)
No long forms · No spam · No fees
Why you can trust Jerry
Jerry partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed insurance agents, and never influenced by our partnerships. Learn more baout how we make money, review our editorial standards, reference out data methodology, or view a list of our partners
Detroit-style pizza, Motown, the Ford Motor Company…Michigan is known for a lot of great things, but as residents of “The Great Lake State” will tell you, their car insurance stinks!
Michiganders pay some of the highest car insurance rates in the country, but according to Governor Gretchen Whitmer, insured drivers are about to be refunded $400 for each vehicle they own.
While this is great news, it is only a one-off payment and it remains to be seen if ongoing efforts to lower the state’s premiums are successful.
In the meantime, the best way to find consistently cheap car insurance is to compare quotes with Jerry. Our service is quick and secure, and the average user saves $879 a year!
A person counting cash.
Michigan drivers get set to get a payment from car insurance companies.

Where is the car insurance refund coming from?

In 1978, the state legislature created the Michigan Catastrophic Claims Association. It was a care fund designed to reimburse insurers for personal injury medical costs, ensuring accident survivors received the care they needed.
While thousands of people have benefitted from the program, it has not come cheap. In fact, anyone who has registered a vehicle in Michigan during the last 43 years has paid into the fund via fees tacked onto car insurance.
Last year, following a bipartisan effort to lower Michigan car insurance rates, Governor Whitmer publicly asked the MCCA to return surplus cash to drivers. 
NPR explains that after carefully analyzing its projected costs, the MCCA has said it can return $3 billion back to insurance policyholders without disrupting the care afforded to accident victims.

Who is eligible for the refund?

Are you eligible for the $400 refund? 
The answer is yes, as long as you had an active Michigan car insurance policy at 11:59 p.m. on Oct. 31, 2021.
There’s probably a long and complicated form to fill out right?
Surprisingly no! You don’t have to do anything. State legislators say the MCCA will allocate the money to insurance companies in March 2022, and they will have 60 days to send the cash to drivers.  
So far, the return of surplus cash from the critical care fund appears to be unmitigated good news, pointing to a brighter (and cheaper) future for Michigan’s motorists.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free