Michigan Gov. Whitmer pushes refunds for drivers from $5B in auto insurance fund

Could drivers in Michigan get a refund from a surplus in auto insurance?

LANSING, Mich.Michigan Gov. Gretchen Whitmer said the Michigan Catastrophic Claims Association (MCCA) should deliver refund checks to Michigan drivers after it reported a $5 billion surplus earlier this year.

Original report: Whitmer: MCCA should deliver $5B in refund checks to Michigan residents with auto insurance

Whitmer wants the group in charge of that money to deliver refund checks. Not everyone agrees with her.

“The over $5 billion surplus accumulated by the MCCA belongs to Michiganders and should be put in people’s pockets immediately with a refund check,” said Whitmer. “As we stay-laser focused on growing our economy and ushering in a new era of prosperity we need to use every resource we have to help people thrive. A refund check to working families will help us continue to put Michiganders first and drive down costs.”

A portion of insurance premiums fund the MCCA, which helps cover catastrophic injuries. The private nonprofit has concerns about the amount Whitmer is requesting.

“At $5 billion -- that is all of our surplus so there’s no cushion in our reserves for anything going back. We would have deficit position - then we would have to raise our rates,” a spokesperson for the MCCA said.

Auto insurance reforms signed by Whitmer in 2019 removed mandatory no fault coverage. Two years later drivers said their premiums haven’t gone down.

The owner of SKF Insurance said there’s a risk to issuing refunds early.

Read: More auto insurance news coverage

About the Authors:

Priya joined WDIV-Local 4 in 2013 as a reporter and fill-in anchor. Education: B.A. in Communications/Post Grad in Advanced Journalism

Kayla is a Web Producer for ClickOnDetroit. Before she joined the team in 2018 she worked at WILX in Lansing as a digital producer.