Michigan Drivers Getting Statewide Auto Insurance Refund

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Dec. 9, 2021—Michigan drivers are slated to get a $400-per-car refund from a state fund that covers costs for severe auto-related injuries, M Live reported. 

The roughly $3 billion in funds will come from the Michigan Catastrophic Claims Association, a statutorily-established nonprofit that all auto insurers pay into for personal injury protection under the state’s auto no-fault system. Drivers are expected to get a refund of $400 per insured vehicle in 2022.

Michigan drivers with an auto insurance policy in place as of 11:59 p.m. Oct. 31 will be eligible for the money, and the funds will be returned automatically by insurers once the MCCA turns it over to insurance companies by March 9, 2022.

The fees collected by the MCCA are built into premiums Michigan motorists pay. Under Michigan’s old auto insurance law, each driver had to purchase unlimited personal injury protection medical coverage and pay the MCCA assessment, which reimburses insurers for catastrophic medical claims.

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