(WWJ) -- The Michigan Catastrophic Claims Association unanimously voted on Wednesday to issue refund checks to Michigan drivers, as proposed by Gov. Gretchen Whitmer earlier this week.
Whitmer proposed $675 be returned to each driver who makes payments to the association for unlimited lifetime coverage of medical expenses if they are involved in a crash.
That money would come from a pool of $5 billion surplus in insurance money.
The MCCA says details on the specific refund amount per vehicle, along with a proposed timeline and logistics will be announced in coming weeks.
In a statement Wednesday evening, Whitmer applauded the association's swift response to her letter.
“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,” Whitmer's statement said. “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 refund is possible due in part to the bipartisan auto insurance reform initiative, Senate Bill 1, signed into law by the governor in 2019.
“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,” Whitmer said earlier this week. “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 MCCA represents auto insurance companies in Michigan and pays for catastrophic care needs. The refunds to Michigan residents would come from a surplus in fund that is supplied by surcharges from drivers.
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