Wednesday, the Michigan Catastrophic Claims Association (MCCA) Board announced unanimous support to issuing refunds to Michigan consumers.
The vote comes as Governor Gretchen Whitmer on Monday sent a letter to the MCCA citing a surplus of $5 billion that she attributed to premium overcharges and cost-saving measures under a 2019 law that cut insurers’ medical costs for people injured in crashes.
Whitmer called for insurance refunds of up to $675 per vehicle to be quickly issued to drivers.
MCCA Executive Director Kevin Clinton had previously said they'd consider the request but the surplus Whitmer was asking for was too much.
In a statement Wednesday, the MCCA said their goal is to issue the largest possible refunds to consumers while maintaining sufficient funds to ensure high-quality care to those who have been catastrophically injured.
“It is great news that the Michigan Catastrophic Claims Association has swiftly taken action in response to my letter this week to begin the process of issuing refund checks to help drive down the costs and produce savings for Michiganders with auto insurance," Governor Whitmer said.
According to the MCCA, details on the specific refund amount per vehicle, along with a proposed timeline and logistics, will be announced in the next several weeks.
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