MCCA Refund Coming in 2022

December 7, 2021 [Updated March 11, 2022]

As you may have seen in recent publications, the Michigan Catastrophic Claims Association (MCCA) Board of Directors has approved approximately $3 billion in surplus funds to be refunded to auto insurance policyholders. Here’s what we know now:

  • Policies that were in force as of 11:59 p.m. on October 31, 2021, qualify for a refund.
  • The refund will be $400 for every vehicle, including motorcycles, that was insured with liability coverage as of the in-force date above.
  • Vehicles in storage will NOT receive a refund since the MCCA fee does not apply to vehicles when in storage.
  • Historical/Antique vehicles will get $80 per vehicle (if not in storage).
  • The MCCA released funds to insurance companies for distribution beginning on March 9, 2022. The insurance companies have up to 60 days to process and distribute refunds. All refunds should be received by May 9, 2022. Some policyholders may receive an electronic refund if they have enrolled in e-refunds with their company.
  • Your refund will come from the company you were insured with on October 31, 2021.
  • Your refund will be mailed to the address on file with your insurance company as of October 31, 2021.
  • Motorcycles & Motorhomes ARE eligible for refunds (if not in storage).
  • Pulled trailers (travel or utility) are NOT eligible for refunds. MCCA fees are not collected for trailers, which is why they don’t qualify.
  • ATV’s/Snowmobiles and other off-road vehicles are NOT eligible for refunds for the same reason as trailers. An MCCA fee is not collected for these types of vehicles and since nothing was paid in, no refund gets paid out.
  • Why October 31, 2021? – The state announced plans of a refund on 11/1/2021. Any policy activity after the announcement could be skewed because of the announcement.

As of June 30, 2021, the MCCA had an estimated surplus of $5.036 billion. After this refund, there will still be a $2.036 billion surplus to project and account for future claims.

To read the full letter from the Department of Insurance and Financial Services, click here. 

Many of our companies have direct resources for you on how they’re handling the refund process. Links with additional information are below.