Michigan Governor Calls For Billions In Auto Insurance Refunds

 Tuesday, November 2, 2021

 Detroit Free Press

The MCCA, a nonprofit corporation with a board controlled by the insurance industry that manages a fund that pays for catastrophic care, should issue the refunds, Whitmer said.

The fund, which has assets of more than $27 billion, gets its money from surcharges paid by insured motorists.

Those surcharges have been reduced since the new auto insurance law took effect, moving to $86 per vehicle this year from $220 per vehicle in 2019.

The surcharge, which used to be applied to all auto insurance premiums, is now only charged to motorists who maintain lifetime catastrophic claims coverage.

Whitmer said in a Monday letter to Clinton that financial reports show the fund’s surplus has still grown from $2.4 billion at the end of 2020 to $5 billion as of June 30, 2021.
AutoLegislation & Regulation