Insurance refunds will total $400 per insured vehicle
State Rep. Luke Meerman today said car insurance reforms he 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 Meerman and the Legislature in 2019.
“It’s gratifying when we can take a concern directly from our constituents and deliver a lasting solution like this one,” said Meerman of Coopersville. “There’s no doubt about it, our car insurance reforms are saving drivers money.”
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 today.
Drivers are expected 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.
“The innocent lives of the unborn are threatened by the passage of Proposal 3 and this bill package goes even further than what Michigan voters approved in November,” Meerman said. “The mislabeled ‘Reproductive Health Act’ not only eliminates health and safety standards in abortion clinics, it also removes protections that ensure women are not coerced into receiving an abortion.”
“The governor’s radical energy policy comes at a time when Michiganders are forced to tighten their budgets and brace for rising costs everywhere form the grocery store to the fuel pump. The timeline laid out by the governor and Lansing Democrats is untenable and will come at a cost to our economy, agricultural production, and the authority of local governments.”