In 2019, Michigan
Governor Gretchen Whitmor signed a new car insurance law
for the state, swapping the mandatory Personal Injury Protection (PIP) coverage system for a no-fault program that made PIP optional in an effort to lower average premiums in the state. The bipartisan law also included an amendment forcing insurers to return surplus funds collected from the Michigan Catastrophic Claims Association to drivers. This year, that surplus amounted to $400 per insured vehicle in the state.
The deadline for insurers to send this refund to drivers is May 9. So far Michiganders have received a total of $900 million from the surplus fund, but another $2.1 billion is expected. Jerry
, your car ownership super app
, looked a little closer at this new law to see how it works. Michigan’s new(ish) car insurance law, explained
With the speed of today’s newsfeeds, it seems odd to describe a law passed in 2019 as new. But like a lot of legislation, the people of Michigan are only now experiencing the full impact of Public Acts 21 and 22 of that year.
Legislators
now require the Michigan Catastrophic Claims Association (MCCA) to share a consumer statement each year and refund citizens any surplus funds through each driver’s insurer.Using fees collected by drivers, the MCCA reimburses insurers for PIP claims that surpass $580,000. In 2021, the MCCA found that it had collected $3 billion more than was needed.
How Michigan’s car insurance refund works
Pretty much all Michiganders with car insurance policies are eligible for a refund. But the way the state made sure of this is a little confusing.
To make the eligibility process simple, cars needed to be insured on October 31, 2021 at 11:59pm to qualify for the refund. If you canceled your policy before that date or started it after, you’re out of luck.
Most policyholders will get the $400 refund per vehicle—that includes motorcycles. But any “historic vehicle” covered under classic car insurance will only get $80 back.
A nice reprieve after the pandemic, thes refunds will be distributed through each driver’s insurance provider rather than from the MCCA directly, since they already have a transaction history with their customers. Makes sense!
Easier ways to save on car insurance
MORE: New Illinois Car Insurance Program Hopes to Make Life Easier for Everyone
A $400 refund is no joke, but Michigan drivers don’t have to wait for a check in the mail to save on car insurance
. Jerry customers save an average of over $800 a year on coverage! Jerry is your ultra-talented car insurance broker for life. No need to sit across from him at a desk: Jerry is an app! It takes less than a minute to sign up, and you’ll be presented with competitive rates from dozens of top providers. Jerry will even help you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.
4.7
