$400 per-vehicle refunds going out to more than 7 million insured drivers

The $400 per-vehicle refunds are starting to land in bank accounts across Michigan, providing $3 billion in savings thanks to bipartisan reforms to the state’s broken auto no-fault law, the Insurance Alliance of Michigan announced last week.

More than seven million Michigan insured drivers will receive $400 per-vehicle refunds between now and May 9.

The refunds come on top of savings from the Michigan Catastrophic Claims Association fee reductions in 2020 and 2021, which totaled well over $1 billion. Drivers across Michigan are also experiencing savings on their premiums through increased competition and by choosing different levels of personal injury protection because of the 2019 bipartisan auto no-fault reforms.

“Now through May 9, more than 7 million drivers will receive $400 per-vehicle checks and direct deposits coming their way because of the bipartisan auto no-fault reforms. This is just one more tangible piece of evidence that these reforms are working,” said Erin McDonough, executive director of the Insurance Alliance of Michigan. “Auto no-fault reforms are providing Michigan drivers with choice for the first time, reducing fraud and reining in rampant overcharging by hospitals and other medical providers. We should stay the course and let reforms keep working.”

More drivers are also buying car insurance for the first time, or for the first time in a while now that it’s more affordable. According to data compiled by IAM member companies, more than 155,000 drivers have purchased car insurance since reforms took effect on July 2, 2020. Over 66,000 of those drivers didn’t have car insurance for three years or more.

Reforms have also encouraged more companies to enter Michigan’s auto insurance market. To date, 37 new companies are planning to enter the market or have already done so, increasing competition and further lowering the cost of auto insurance.

Despite a massive PR and lobbying campaign by special interest groups trying to turn back the clock, auto no-fault reforms are putting money back in the pockets of Michiganders at a time of rising inflation and costs, McDonough said.

“We’ve heard from member companies that direct deposits are already starting to roll out and more are on their way,” McDonough said. “These refunds are a direct result of staying the course on the 2019 bipartisan auto no-fault reforms, saving Michigan drivers money at a critical time.”