Car Insurance Refund Michigan: What You Need to Know

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If you live in Michigan, you may be eligible for a car insurance refund, thanks to recent changes in state law. In this article, we’ll explore the details of the refund, who is eligible, and how to go about getting it.

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What is the Car Insurance Refund in Michigan?

The car insurance refund in Michigan is a reimbursement to policyholders for a portion of the personal injury protection (PIP) fees they paid in 2019 and 2020. This refund is a result of changes in state law that went into effect on July 1, 2020.

Michigan’s PIP system is unique in that it requires all drivers to purchase unlimited medical coverage as part of their car insurance policy. This has led to some of the highest car insurance rates in the country. However, the recent reforms in the state aim to provide relief to drivers by lowering the cost of PIP coverage.

Who is Eligible for the Car Insurance Refund in Michigan?

If you had an active car insurance policy in Michigan anytime between July 1, 2019 and June 30, 2020, you may be eligible for a refund. This includes both personal and commercial auto policies.

The amount of your refund will depend on several factors, including how much you paid in PIP fees during the eligible time period, and whether you opted for limited or unlimited coverage.

How Much Money Will I Get?

The amount of the car insurance refund in Michigan will vary from policy to policy. However, the average refund is expected to be around $120 per vehicle.

Here’s a breakdown of how the refund amounts will be calculated:

Policy Type
Coverage Level
Refund Amount
Personal Auto
Unlimited
$100 per vehicle
Personal Auto
Limited
$30 per vehicle
Commercial Auto
Unlimited
$600 per vehicle
Commercial Auto
Limited
$180 per vehicle

How Do I Get My Car Insurance Refund in Michigan?

Getting your car insurance refund in Michigan is a relatively simple process. Most insurance companies will automatically issue refunds to eligible policyholders by August 2020.

If you haven’t received your refund by then, you should contact your insurance company directly to inquire about the status of your refund.

FAQ: Car Insurance Refund in Michigan

Q: Will I receive a physical check for the refund?

A: It depends on your insurance company. Some companies may issue a physical check, while others may opt to issue the refund electronically.

Q: Do I need to apply for the refund?

A: No, if you are eligible for the refund, your insurance company should issue it automatically. However, if you haven’t received your refund by August 2020, you should contact your insurance company directly.

Q: Can I apply for the refund if I cancelled my policy before June 30, 2020?

A: No, you are only eligible for the refund if you had an active policy anytime between July 1, 2019 and June 30, 2020.

Q: Will the car insurance refund affect my premium?

A: No, the car insurance refund in Michigan should not affect your premium. However, the recent reforms in the state may lead to lower car insurance rates in the future.

Conclusion

If you are a resident of Michigan and had an active car insurance policy between July 1, 2019 and June 30, 2020, you may be eligible for a car insurance refund. The refund is a result of recent changes in state law aimed at lowering the cost of personal injury protection coverage.

If you are eligible for the refund, your insurance company should issue it automatically, but if you haven’t received it by August 2020, be sure to contact your insurance company directly for more information.

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