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Governor Gretchen Whitmer’s administration announced Tuesday that the Michigan Catastrophic Claims Association plans to refund state residents $400 per vehicle in the second quarter of 2022. In November, Whitmer called on the MCCA and asked them to distribute its $5 billion surplus and issue refund checks to Michigan drivers. Each year, the MCCA charges an assessment to cover catastrophic injuries resulting from car accidents. In a vote held on Nov. 3, the MCCA board voted in favor of issuing refund checks to drivers throughout the state.

Photographer: Sean Proctor/Bloomberg via Getty Images

On Tuesday, Whitmer released a statement saying that, “These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver, Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders.”

As many of you know, Michigan has always been known for having high car insurance prices. Lt. Gov. Garlin Gilchrist said that “The coming refunds are “a major win for all drivers — especially Detroiters — who have paid the highest insurance rates in the nation for decades.”