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Rep. Kahle: Drivers can expect even more car insurance savings resulting from 2019 reforms
RELEASE|December 8, 2021
Contact: Bronna Kahle

Insurance refunds will total $400 per insured vehicle

State Rep. Bronna Kahle today said car insurance reforms she helped approve will lead to $400 refunds for each insured vehicle early next year.

The refunds for insured drivers are coming from the Michigan Catastrophic Claims Association. The association has built a surplus due largely to legislative reforms approved by Kahle and the Legislature in 2019.

“The people of Lenawee County and all across Michigan were fed up with the cost of their car insurance premiums. We listened and generated reforms – now those reforms are putting real dollars back into drivers’ pockets,” said Kahle of Adrian. “I’m so grateful to have had the opportunity to play a role in these historic reforms that will save families money for years to come.”

The state’s new auto insurance laws call for periodic audits of the MCCA’s finances and require refunds for Michigan drivers when certain financial criteria are met. The MCCA said last month that refunds would be coming, and the specifics were announced Tuesday.

Drivers can expect to receive the refunds in the second quarter of 2022.

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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