According to NPR, Michigan’s attempts to lower its famously high insurance rates seem to be working: every driver in the state will be refunded $400 for each vehicle they own, Michigan Gov. Gretchen Whitmer says.
The money comes from a projected $5 billion surplus held by the Michigan Catastrophic Claims Association, a non-profit that reimburses auto insurers for personal injury medical costs that exceed a threshold — an amount that is currently set at $600,000.
“Michiganders have paid into the catastrophic care fund for decades,” Whitmer said in a statement sent to NPR, “and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders.”
After analyzing its accounts and projected costs, the MCCA said it could return roughly $3 billion of the overall surplus to policyholders while still maintaining care for accident survivors.
The refunds apply to any vehicle covered by an active auto insurance policy as of 11:59 p.m. on October 31, 2021.
