Michigan House Republicans
Rep. LaFave: Michigan drivers to receive $400 refund per insured vehicle
RELEASE|December 8, 2021
Contact: Beau LaFave

Rep. Beau LaFave announced $400 refunds will be issued to Michigan drivers for each insured vehicle early next year thanks to car insurance reforms he helped approve.

The refunds for insured drivers are coming from the Michigan Catastrophic Claims Association (MCCA). The association has built a surplus in large part because of the reforms approved by LaFave and the Legislature in 2019. The new law requires an audit of the MCCA every three years. If the audit determines the assets of the MCCA exceed 120% of its liabilities and a refund wouldn’t threaten its ability to pay personal injury protection (PIP) reimbursement, the state must require the MCCA to issue a refund.

“Drivers throughout Michigan are soon going to see that the Legislature’s reforms continue to result in major financial savings for their families,” said LaFave, of Iron Mountain. “This $400 refund per insured vehicle is absolutely critical, especially as people deal with higher prices for essential items. I am honored to say that I helped make this happen.”

The state’s new auto insurance laws call for periodic audits of the MCCA’s finances, and requires 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 this week.

Drivers are expected to receive the refunds in the second quarter of 2022.

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