Michigan drivers to receive partial auto insurance refunds under new executive order

Michigan's insurers must issue drivers refunds for their auto insurance premiums, a new executive order from the governor says.

On Monday, Gov. Gretchen Whitmer and Anita Fox, who heads the state's insurance and financial services department, mandated insurance companies issue refunds or premium waivers to consumers due to the reduced risk of driving during the COVID-19 pandemic.

Under the order, companies will have until June 10 to submit filings to consumers. They will include information on how much the company will refund for, how it came to that amount, and how consumers will receive payments.

“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 in a statement. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.”

The order also requires insurance companies to communicate their plans with customers about how they can receive the refunds and options available for long term changes in driving habits. An example like that would be those who have been laid off or are telecommuting.

“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.”

You can learn more by contacting the Department of Insurance and Financial Services at (833) 275-3437 or emailing autoinsurance@michigan.gov