Drivers in this state will receive a $400 auto insurance reimbursement check


Michigan’s recent bipartisan auto insurance reform will mean reimbursement checks delivered directly to drivers’ pockets. (iStock)

Eligible Michigan drivers will receive a $400 auto insurance refund per vehicle this spring due to an excess held by the Michigan Catastrophic Claims Association (MCCA).

“The $400-per-vehicle reimbursement is the result of reforms passed with bipartisan support by the Legislative Assembly and signed into law by Governor Gretchen Whitmer, as well as strong financial returns on the investments made by the MCCA,” according to a statement from the MCCA. hurry.

Still, Michigan has the third highest auto insurance rates in the nation after Florida and Louisiana, according to data from Policygenius. Drivers paid an average of $2,377 a year in car insurance premiums, well above the national average of $1,652.

Keep reading to learn more about these car insurance refunds. And if you want to change auto insurance, you can visit Credible to find the right policy for you.


Who will get auto insurance reimbursement and when?

Michiganders who had car insurance as of October 31, 2021, will begin receiving $400 reimbursement checks from their auto insurance company beginning in the second quarter of 2022, according to the state Department of Insurance. In total, Michigan drivers will receive approximately $3 billion in auto insurance reimbursements.

The MCCA’s decision to refund excess money to drivers is due to auto insurance law reform by the Michigan Legislature in 2019. This reduced the minimum insurance requirements for medical coverage to protect against personal injuries.

“Michigans have contributed to the Catastrophic Care Fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return excess funds to the pockets of Michiganders,” said Governor Whitmer in a statement to NPR.

Eligible drivers don’t have to do anything to get paid. The state said the MCCA would send the funding to auto insurance companies in early March and the money must be sent to drivers within 60 days.

The MCCA has recommended Michigan motorists who believe they meet the eligibility requirements for a refund to contact their auto insurance agent for more information on the timing and status of their refund. If you don’t qualify for a refund, you can consider other methods to save money on your auto insurance policy.

One strategy is to compare quotes from multiple auto insurance companies to ensure you get a competitive rate. You can visit Credible for free auto insurance quotes.


How to reduce the cost of insurance

Even with reimbursement, policyholders in Michigan pay some of the highest auto insurance rates in the country. Michigan is just one of 8 states where drivers pay more than $2,000 a year for car insurance, joined by Florida, Louisiana, New Jersey, New York, Kentucky, Nevada and Delaware, according to data from Policygenius.

Average auto insurance premiums by state

Overpaying for auto insurance can take funds out of your monthly budget that can be used to cover other necessary expenses, like groceries or utility bills. If you’re looking for ways to save money on car insurance, consider the following strategies from the Insurance Information Institute (III):

  • Increase the deductible. A higher deductible will lower your monthly premium, but it will cost you more if you have to file a claim.
  • Bundle insurance policies. Insurance companies that offer auto and home insurance, for example, may offer a multi-policy discount.
  • Look for other discounts. You can get a discount for safe driving, low mileage, and even good student grades. Taking a defensive driving course can also reduce your monthly rate.
  • Maintain good credit. Drivers with established credit histories can benefit from lower car insurance costs.
  • Shop around with insurers. Car insurance premiums vary from company to company, so it’s a good idea to get at least three quotes from different insurers.

It is possible to compare the quotes of several car insurers at the same time on Credible. Visit the online financial market to learn more about auto insurance and see if you can lower your costs.


Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at and your question might be answered by Credible in our Money Expert column.


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