State Rep. Jack O’Malley today said car insurance reforms he voted to approve in 2019 will soon lead to money going back to drivers across northern Michigan in upcoming months.
The Michigan Catastrophic Claims Association announced it will provide $400 refunds for each insured vehicle early next year. The state’s new car 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 can expect to receive refunds in the second quarter of 2022.
“This is money going directly back into the pockets of drivers across our area and the state – and it is a direct result of legislation I fought for,” said O’Malley, of Lake Ann. “We knew we needed to step up and finally put a stop to Michigan’s out-of-control car insurance costs. People told us this was a major issue facing them and their families. We’re seeing the benefits of the plan we worked to send to the governor – savings for hard-working people, less financial burden and a fairer system.”
The refunds 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.
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