After years of the suffering highest auto insurance rates in the nation, Michigan drivers finally will have something to show for their high payments — a refund of $400 per vehicle from the surplus in the Michigan Catastrophic Claims Association fund.

While many were pleased to hear the news last week, the timeline and logistics of the situation remained major questions for people and insurance agencies across the state.

However, the state earlier this week issued further information and guidance, including imposing a May 9 deadline for insurance companies to issue refunds to all eligible drivers. The Michigan Department of Insurance and Financial Service also issued a bulletin to Michigan’s insurers and launched a consumer FAQ page.

The MCCA refunds were made possible by the cost saving and fraud prevention provisions of the historic, bipartisan auto insurance reform signed into law by Whitmer in 2019.

The refund plan issued by the MCCA will result in $400 refunds sent to policyholders for every vehicle that was insured as of 11:59 p.m. on Oct. 31.

Surplus funds will be transferred by the MCCA to insurers by March 9, and the new DIFS bulletin directs insurers to issue refunds via check or direct deposit to consumers as expeditiously as possible, but no later than May 9.

In addition to issuing industry guidance, DIFS has also launched a consumer FAQ page at Michigan.gov/MCCArefund.

The website contains information and answers to common questions about the refund timeline, eligibility requirements, and tells consumers what they can do if they have questions or concerns about their refunds.

Additional information about the auto insurance reform law, including the amnesty period that allows uninsured drivers to get penalty-free auto insurance if they apply for coverage before Jan. 1, can be found at Michigan.gov/AutoInsurance.

Frequently asked questions, tips for shopping for insurance, and an insurance locator to help find licensed agents are also available.

Consumers with questions or concerns about auto insurance can contact DIFS by calling Monday through Friday 8 a.m. to 5 p.m. at 833-275-3437 or by emailing autoinsurance@michigan.gov.

We’re glad to see these refunds on their way, as it’s a welcome break for drivers who have not only suffered high insurance rates for years, but have also been hit hard by the recent rising costs of gasoline and even automobiles themselves.

We commend the governor and Legislature for working across the aisle to pass the bipartisan legislation that led to these refunds, which serve as a concrete sign of forward movement regarding auto insurance reform in the state of Michigan.

These refunds will directly benefit drivers, with the added bonus of stimulating spending in state’s economy, as the extra several hundred dollars in each driver’s pocket will likely motivate people to spend money on goods and services throughout Michigan.