Michigan Insurance Refund Update

If you’re a Michigan resident who has purchased auto insurance, you may be entitled to a refund due to recent changes to the state’s auto insurance laws. In this article, we’ll explain what these changes are, how they may impact you, and what steps you need to take to claim your refund.

Background

Michigan has long had some of the highest auto insurance rates in the country. One of the primary drivers of these high rates was Michigan’s unique requirement that all drivers purchase unlimited personal injury protection (PIP) coverage. This coverage is meant to provide medical and rehabilitation benefits to people involved in auto accidents, regardless of who is at fault.

However, this requirement also led to high costs for insurers, which were passed on to consumers in the form of high premiums. In response to these concerns, Michigan lawmakers passed a series of reforms in 2019 aimed at reducing the cost of auto insurance in the state.

The Reforms

The 2019 reforms to Michigan’s auto insurance laws made several key changes, including:

• Allowing drivers to choose their level of PIP coverage, rather than requiring unlimited coverage
• Mandating that insurers reduce their PIP rates for a certain period of time
• Limiting the amount that medical providers can charge for services related to auto accidents
• Creating a fee schedule for medical services that includes lower rates for providers

These reforms are expected to lead to significant savings for Michigan drivers, with some estimates suggesting that premiums could be reduced by up to 50% for some drivers.

The Refunds

As part of the 2019 reforms, Michigan insurers are required to provide refunds or credits to policyholders for a certain period of time. The amount of the refund or credit will vary depending on a variety of factors, including the amount of PIP coverage purchased, the length of time the policy has been in force, and the specific insurance company.

Michigan drivers who have purchased auto insurance between July 1, 2018 and June 30, 2020 may be eligible for a refund or credit. The refunds and credits are being provided in stages, with initial refunds scheduled to be issued in July 2020, and additional refunds to be issued in 2021 and 2022.

How to Claim Your Refund

If you are eligible for a refund or credit, your insurance company should notify you by mail or email. You will need to provide your insurance company with some basic information, such as your policy number and contact information.

If you do not receive a notification from your insurance company, you should contact them directly to inquire about your eligibility for a refund or credit. You can also check the Michigan Department of Insurance and Financial Services (DIFS) website for more information.

FAQ

1. What is PIP coverage?

PIP coverage is a type of auto insurance that provides medical and rehabilitation benefits to people involved in auto accidents, regardless of who is at fault.

2. What are the benefits of the 2019 reforms?

The 2019 reforms are expected to lead to significant savings for Michigan drivers, with some estimates suggesting that premiums could be reduced by up to 50% for some drivers.

3. How do I know if I’m eligible for a refund or credit?

If you are eligible for a refund or credit, your insurance company should notify you by mail or email. You can also check the Michigan Department of Insurance and Financial Services (DIFS) website for more information.

4. When will the refunds be issued?

The refunds are being provided in stages, with initial refunds scheduled to be issued in July 2020, and additional refunds to be issued in 2021 and 2022.

Conclusion

If you’re a Michigan resident who has purchased auto insurance, you may be entitled to a refund or credit due to recent changes to the state’s auto insurance laws. Be sure to check with your insurance company or the DIFS website to determine your eligibility for a refund or credit, and don’t hesitate to contact your insurer if you have any questions or concerns.