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Information on Michigan vehicle insurance refunds

On Behalf of | Mar 30, 2022 | Uncategorized |

In 2019, Michigan enacted sweeping vehicle insurance reforms that changed how much Michiganders pay for coverage. The reforms aimed to lower the state’s high insurance premiums by ending lifelong payments for some crash victims and by creating new fee options for medical claims.

In 2022, many drivers in Michigan should see refunds due to these reforms.

Who gets refunds?

Information from The Bridge states that Michigan residents who owned and operated an insured vehicle would get an insurance refund in 2022.  The refunds apply to drivers who insured a vehicle in Michigan as of October 31, 2021. Motorcycles, cars and trucks and RVs all qualify. Individuals should receive a $400 refund for each vehicle insured during this time frame.

The checks or automatic deposits will not come from the State of Michigan but will come out of the Michigan Catastrophic Claims Association. Individual auto insurance companies will send out the refunds to policyholders.

When will checks arrive?

The distribution should begin in early 2022 and should conclude several months later. Individuals who do not receive a refund by this time should contact their insurance company. Insured parties who have moved should notify their insurer to ensure prompt payment.

Some observers say the reforms continue to push down vehicle insurance rates in the state, but other parties argue that the cost to injured crash victims remains too high. Patients who received unlimited medical treatment as the result of a catastrophic accident under the old plan will now receive reduced payments for medical claims. Efforts exist for modifications of the reforms passed in 2019 for these patients.