The Michigan Catastrophic Claims Association (MCCA) has issued a refund.
The MCCA recently announced consumer refunds resulting from Auto No-Fault Reforms passed in July of 2019. The changes to the law resulted in a surplus, and by law when the assets of the MCCA exceed 120% of their liabilities, a refund of the fees policyholders have paid into the fund is required.
Here's what you need to know:
Am I getting a refund?
If you were the Named Insured on an auto policy as of October 31, 2021, and at least one of your vehicles carried liability coverage, then yes, you'll receive a refund. This is the case whether you have Unlimited PIP Medical coverage or not.
How much will I be getting?
Your refund will include $400 per vehicle/motorcycle you had insured with liability coverage as of October 31, 2021. Please note that vehicles in storage and trailers are not eligible for this refund, and the refund for Antique/Historic vehicles is $80 per vehicle. For Pioneer customers, details regarding how your refund amount was calculated will be available if you log into your My Pioneer account and go to your policy documents.
NOTE: Refunds for Commercial Auto policies with vehicle fleets were calculated by the MCCA based on slightly different criteria.
How long will I have to wait?
The MCCA is set to wire funds to insurance companies beginning on March 9th. The process may take a few days to complete, as there are many insurance carriers and a lot of money is being transferred. We cannot speak to the processing plans for other companies, but Pioneer State Mutual is prepared to begin distributing refunds to our policyholders beginning as soon as the MCCA transfer is completed.
Do I need to do anything to receive my refund?
No. If you are eligible, your refund will be sent to you. No action is required on your part.
If you have moved since last October, check with your insurance company to verify they have your current address.
Who will be sending my refund?
The Board of Directors at the MCCA decided to distribute this refund to policyholders via the insurance company with which they were insured as of October 31, 2021. So logistically, the MCCA will first send funds to the insurance companies, then the companies will distribute the refunds to policyholders. If you have switched insurance companies since October 31, 2021 your refund will come from your old company.
Why won't this refund just be applied to my balance?
The MCCA Board of Directors required that these refunds be distributed as checks or electronic refunds, and did not allow for companies to apply the amount as credit towards policy premiums.
What if I have further questions?
We always recommend getting in touch with your Independent Agent regarding any questions you have about your insurance.