Before July 2020, all Michigan auto policies were required to provide unlimited lifetime coverage for medical expenses resulting from a motor vehicle accident. While consumers now can reduce or opt-out of medical coverage on their auto policy, unlimited lifetime medical coverage continues to be the most common coverage option.
The funding mechanism for unlimited lifetime medical coverage is through an MCCA assessment on every vehicle insured for this level of coverage. While your insurance company collects those funds, they turn them over to the private, nonprofit Michigan Catastrophic Claims Association.
In December, there was an announcement the Michigan Catastrophic Claims Association currently has a surplus of funds and will be returning $400 per vehicle to Michigan drivers.
Who is eligible to receive a refund?
All vehicles insured as of 11:59 p.m. on October 31, 2021, provided the vehicle was insured with coverage legal to operate on Michigan roads.
Vehicles only insured with comprehensive coverage (often referred to as storage coverage) are not eligible for a refund.
What if I reduced or opted out of Personal Injury Protection (PIP) medical coverage?
All eligible vehicles can receive a refund regardless of the medical coverage level.
How much will the refund be?
The refund will be $400 per eligible car, motorcycle, or recreational vehicle, provided the vehicle was insured with coverage legal to operate on Michigan roads.
One exception is for historic vehicles. Historic vehicles pay 20% of the annual MCCA assessment, and, as a result, the refund for historic vehicles will be $80 per eligible vehicle.
Trailers are not subject to the MCCA assessment and therefore are not eligible for the refund.
Do I have to do anything to get my refund?
No. If you are eligible for a refund, you will receive a refund check or ACH deposit from your insurance company.
When will I get my refund?
The MCCA will turn over the surplus funds to insurance companies by March 9, 2022. The insurance companies will be responsible for issuing refunds to eligible policyholders and are required to provide the refunds no later than 60 days after receiving the funds from the MCCA.
If you are eligible, you should receive your refund no later than May 9, 2022.
Will I still receive a refund if I owe a balance to my insurance company?
Yes. Insurance companies must issue the refund to policyholders by check or ACH transfer.
What if I changed auto insurance companies after October 31, 2021?
The insurance company that insured your vehicle on October 31, 2021, will be responsible for issuing the refund.
What if I moved after October 31, 2021?
Your insurance company will send your refund via check or ACH deposit to the address or bank account it has on record. If you have moved or changed banking institutions since October 31, 2021, you should contact your insurance company to ensure it has your current information.
Do you have additional questions?
The most comprehensive resource for information on MCCA refunds is the Department of Insurance and Financial Services MCCA Refunds page.