LANSING, Mich. (AP) — Michigan drivers with auto insurance will soon start getting previously announced $400 refunds per vehicle.
Gov. Gretchen Whitmer and the state’s top insurance regulator said Monday that a $3 billion transfer of surplus funds from the Michigan Catastrophic Claims Association to car insurers will be completed this week. The companies will have 60 days to issue the refunds — no later than May 9.READ MORE: 'In A Daze': Royal Oak Woman Wins $500K Powerball Prize Over Mother's Day Weekend
The state said eligible consumers who do not get refunds should contact their auto insurer or agent. Those who are unable to resolve questions or concerns can contact the state Department of Insurance and Financial Services.
The catastrophic care fund, which reimburses insurers medical and other costs for people seriously injured in crashes, is funded with an annual per-car fee that became optional under a 2019 law. The governor has attributed the surplus and refunds in part to the law that also curbed or cut what health providers and home aides can charge auto insurers, which said they were being gouged.READ MORE: City Of Saginaw To Resume Water Shutoffs, Collection Efforts In July
Critics say the slashed reimbursements have led to injured motorists losing quality care and access to care.
The law requires refunds, though Whitmer — who is up for reelection — successfully requested that they be issued sooner than required. She sought a $5 billion refund. The association agreed to a $3 billion refund.MORE NEWS: Suspect Wounded By Police During Shootout In Detroit
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