The Michigan Catastrophic Claims Association has begun the transfer of $3 billion in surplus funds, with the money being distributed to insured Michigan drivers. The state also offered tips to avoid being scammed out of the money.
Insurer filings reviewed by Bridge show most drivers will save money under a reform law set to take effect July 2. But universal savings appear exaggerated and where you live still impacts what you will pay.
Travel fell by more than 40 percent amid the pandemic, which experts say could reap insurance companies sizable profits. Ordered by Gov. Gretchen Whitmer to pay rebates, most are paying 15 percent to 20 percent. That often amounts to about $50 or less.
After weeks of secret talks, and years of gridlock, the deal offers personal injury protection opt-out for some drivers, extends guaranteed PIP rate rollbacks for 8 years and stops insurers from raises based on non-driving factors.
Gov. Gretchen Whitmer, a Democrat, says she draws line on GOP option for drivers to opt out of buying personal injury protection in car insurance. But she appears willing to reach a no-fault deal without tying it to an agreement on road funding.
Gretchen Whitmer, a Democrat, said she and Republicans are no closer to a deal on auto no-fault reform than they were when both chambers passed bills last week. But talks are ongoing, which both sides said was promising.
Michigan Republicans say the plans will save “buckets” of money for drivers. Democrats say the plans don’t guarantee rate roll-backs nor the elimination of non-driving factors in setting insurance rates. Is there an opportunity for a grand bargain that includes road funding?
The Republican-controlled Michigan Senate approves bills that would allow drivers to opt out of unlimited medical benefits. Gov. Gretchen Whitmer is promising to veto the measure if it makes it to her desk.