Wednesday, 03 June 2020 09:34

Michigan Orders Auto Insurance Companies to Issue Refunds to Drivers


If you haven't gotten a break on your auto insurance, it looks like there's still a refund coming your way. 

Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) on June 1 announced DIFS Director Anita Fox has ordered all auto insurers in Michigan to issue refunds or premium waivers to consumers as a result of insurance companies’ reduced risk due to extreme reductions in driving during the COVID-19 pandemic.


“Michiganders have been staying safe and staying home and they should see the benefit in reduced auto insurance rates during the COVID-19 pandemic,” said Whitmer. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.”


DIFS Order No. 2020-10-M sets a deadline of June 10 for insurers to submit filings that include the refund or premium waiver amount, information on how that amount was determined and how consumers will receive payments.


The order also requires communication plans to inform customers about the refund and the options available to those with long term changes in driving habits, for example those who have been laid off or are telecommuting.


The order does not set an amount that insurers are required to refund. 


“This order will ensure all insurers are issuing appropriate refunds or premium waivers to their customers,” said Fox. “Consumers may realize additional savings by modifying their policies to reflect their current driving habits. Drivers should contact their agent to discuss garaging a car or making other changes to save on their premiums.”


DIFS can assist consumers with questions or disputes that they're not able to resolve directly with their insurer. Michiganders can call DIFS Monday through Friday from 8 a.m. to 5 p.m. at 833-ASK-DIFS (275-3437) or by emailing autoinsurance@michigan.gov.

This news comes after many insurance companies announced in April they planned to give some money back to their customers amid the coronavirus pandemic; both because people driving around less means fewer claims, and also to help those who are in financial hardship during this time.
Credits issued tend to range on average from 15% to 25% of your bill, depending on which auto insurance company you have.


State officials note these premium waivers or refunds are in addition to any savings resulting from the upcoming changes to Michigan’s auto insurance law, which has shown reductions to statewide average premiums for Personal Injury Protection medical coverage for policies issued or renewed after July 1. Visit Michigan.gov/autoinsurance for more details on changes to the law and instructional videos.


We thank WWJ News Radio for reprint permission.