LANSING (WWJ) -- Gov. Gretchen Whitmer is requesting that a $5 billion surplus go back into the pockets of Michigan drivers with auto insurance.
Whitmer is calling on the Michigan Catastrophic Claims Association (MCCA) to send refund checks to drivers who make payments to the group for unlimited lifetime coverage of medical expenses if they are involved in a crash.
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. “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.
In 2020, the MCCA had a $2.4 billion surplus. By June 30, 2021, that surplus had risen to more than $5 billion, according to Whitmer’s letter.
The current payment amount made by Michiganders with auto insurance is $86 per vehicle.
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