Michigan House Republicans
Rep. Glenn: Car insurance refund shows Legislature’s reforms are working for Michigan drivers
RELEASE|November 4, 2021
Contact: Annette Glenn

Rep. Annette Glenn today noted that a pending refund announced by the Michigan Catastrophic Claims Association was sparked by a 2019 reform she helped approve in the state Legislature.

The reform helped create a surplus within the MCCA, calls for periodic audits of the association’s finances, and requires refunds for Michigan drivers when certain financial criteria are met. The MCCA board this week voted in favor of issuing refund checks to insured drivers, with the amount and other specifics expected to be announced within the next several weeks.

“This refund may be getting announced even sooner than technically required under the law, which speaks to just how effective our reforms have been for Michigan drivers,” said Glenn, R-Midland.  “I am looking forward to hearing more details about the savings. We’ve consistently seen savings on car insurance bills – particularly when it comes to MCCA rates – over the past couple of years. It’s much-needed relief for Michigan drivers, who for years faced some of the highest vehicle insurance costs in the nation.”

The refund will come in addition to annual MCCA rate reductions. The per-vehicle assessment fee was $220 in 2019, but it has dropped to $86 per vehicle for the current 12-month period. The annual fee is charged only to drivers choosing to maintain unlimited lifetime personal injury protection benefits in their car insurance policies. Drivers who choose lower coverage limits under Michigan’s revised no-fault insurance law avoid the fee altogether.

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