What Did The Governor Have To Say Regarding Car Insurers
In a recent crackdown on car insurance companies, Michigan State Gretchen Whitmer has demanded an immediate rebate of about $675 per car from the stakeholders of her state.
A letter was composed by Whitmer at the beginning of November. She strongly opposed the idea of investing the profits gained on billions of dollars by the car insurance companies for their profit.
The Michigan Catastrophic Claims Association has been under the radar for quite a while as they have been alleged for illegally occupying $5 billion more than the defined limit in the funds account that is used for reimbursing insurance companies for medical claims.
The association which includes all the insurance companies has readily agreed to comply with the governments requirement to proceed with the refunds of the surplus funds despite showing initial reluctance at the governments behest.
When Will I Receive My Car Insurance Relief
It depends. Based on the type of refund program offered by your auto insurer, which can include refunds, credits or a one-time payment, drivers can expect to receive relief anywhere between April and June.
“Most consumers can expect to see refunds arriving from late April/early May to June, depending on their insurer. Those who are receiving a one-time check will likely see refunds by the end of April, while those receiving credits toward April and May policies will see credits in May and June,” said Michelle Megna, editorial director of carinsurance.com.
For insurance companies sending a one-time check, refunds could arrive before the end of April, Megna says, as state regulators have to sign-off before checks can be mailed.
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Are Fleet Vehicles Included In The Insurance Refund
Yes, they are. The refund is dependent on how they’re identified in the fleet’s insurance policy:
- For vehicles that are individually identified in the policy, such as by VIN or license plate number, the full MCCA refund of $400 per vehicle will be given for each vehicle.
- For policies that are written on a per-plate basis, such as those used by car dealerships with license plates that are moved from car to car as needed, the MCCA refund of $400 will be calculated and sent on a per-plate basis.
- For commercial fleet policies that are written on a gross-receipts basis, or for other types of policies where individual vehicles cannot be identified, the refund will be calculated as 135% of the applicable in-force commercial auto PIP written premium related to those policies.
Additional information about the auto insurance reform law can be found at Michigan.gov/AutoInsurance
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Traffic And Premiums Picking Up
During the worst of the pandemic, restrictions on business activity and other aspects of normal life caused overall driving to drop well below pre-COVID levels, according to the U.S. Bureau of Transportation Statistics.
That meant fewer accidents and big profits for auto insurers. Progressive reported an 82% increase in net income, while Geicos pretax earnings tripled during the second and third quarters of 2020.
In recognition, insurance providers voluntarily gave out more than $14 billion in refunds and credits last year, the American Property Casualty Insurance Association says.
Today, the Great Slowdown seems to have ceased. Government data shows traffic returned to normal in spring 2021 and in June, activity on the roads was 10% to 20% higher than before the pandemic began.
Without missing a beat, insurance premiums have been rising, too. The Consumer Price Index recorded six straight months of hikes, finally ending in July.
State Farm, for example, has received approval to raise premiums by some 4% in Louisiana, according to S& P Global Market Intelligence. Its also filed for increases in Arkansas, Connecticut, Georgia, Maine, Michigan, Pennsylvania, Virginia and West Virginia.
Michigan Drivers Will Start Receiving $400 Auto Insurance Refund Checks This Week
$400 auto insurance refund checks to arrive start arriving this week
Michigan drivers who had their vehicle insured by Oct. 31, 2021 will see their auto refund arrive in their bank account over the next 60 days. The refunds could arrive as soon as this week.
LANSING, Mich. – Michigan‘s auto insurance refund check that’s owed to drivers will start arriving in bank accounts this week, according to the state’s department of financial services.
The $400 refund checks issued to drivers are intended for those who had their vehicles insured by Oct. 31, 2021. The refund is part of bipartisan auto reform legislation passed in 2019 that requires the Michigan Catastrophic Claims Association to issue money back to drivers.
Over the next 60 days, the $400 refunds owed to drivers will be deposited electronically in bank accounts. Gov. Gretchen Whitmer first announced the rebates in December 2021, with guarantees that refunds will be transferred from the MCCA to insurers by March 9.
“The Governor directed DIFS to take an active role in ensuring that refunds would be issued expeditiously to Michiganders who have paid into the fund for decades,” said Anita Fox, who heads the Department of Insurance and Financial Services. “The DIFS bulletin ensures that consumers are protected and imposes a May 9, 2022 deadline for issuing refunds to all eligible drivers.”
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What Is Happening In Michigan And The Other States
The pandemic has gravely affected prices and the resulting overcharge is a major contributing factor to increased complaints from other states. Enforcement of quarantine during the pandemic had caused a massive decline in cars present on roads as mostly everyone stayed at home.
This caused fewer accidents and an 82% rise in net income was reported by Progressive.
Quarter 2nd and quarter 3rd of 2020 proved to be very profitable for Geico as his pre-tax earnings jumped up by 300%. In 2020 as per the statement issued by the US property Casualty insurance Association, insurance companies paid above $14 billion as refunds to the Government.
But it seems a couple of critics are not satisfied.
Ricardo Lara, California Insurance commissioner in his issued statements from October has stressed that he has become impatient being on the side of consumers. He added further sending a warning to 3 firms giving them 30 days to tell them permanently how they will fix it.
An analysis was carried out by the Government regarding the amount reimbursed by the insurance providers and the results yielded that they have been returning around 9% from March to September 2020. But the evaluation by the insurance department shows that the insurance companies must have returned 18%.
California: Up To $1050 Rebate
Californias new budget includes payments of $350 for individual taxpayers who make $75,000 or less. Couples filing jointly will receive $700 if they make no more than $150,000 annually. Eligible households will also receive an additional $350 if they have qualifying dependents.
Taxpayers with incomes between $75,000 and $250,000 will receive a phased benefit with a maximum payment of $250. Those households can get up to an additional $250 if they have eligible dependents.
Californians can expect to receive payments between October 2022 and January 2023 via direct deposit and debit cards.
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Hawaii: $300 Rebate Payments
In June, Hawaiis legislature approved sending a tax rebate to every taxpayer Taxpayers earning less than $100,000 per year will receive $300, and those earning more than $100,000 per year will receive $100. Dependents are eligible for the rebate, too.
Taxpayers who filed their 2021 state income tax returns by July 31, 2022 can expect to receive their returns in September or October. For residents filing their 2021 return between Aug. 1 and Dec. 31, you can expect your payment up to 12 weeks after filing.
How Does Your Payment Schedule Affect Your Car Insurance Refund
If you choose to cancel your policy, or your insurance company cancels it, you typically won’t get a refund unless you’ve paid the premium in advance. For example, let’s say your policy term is 12 months, and you pay the premium for the entire year upfront. If you cancel your policy after only three months, your insurer will issue a refund for the remaining nine months.
If you pay in monthly installments and cancel your policy at the end of the month or billing cycle, you probably won’t get a refund. But if you were to cancel your policy in the middle of the month or billing cycle, then you may get a small refund since you’ve already paid your premium for the full month.
Important note: Whether you pay monthly or upfront, you may have to pay a cancellation fee when you cancel your policy â depending on your insurer.
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Which Car Insurance Companies Are Offering Relief
21st Century: 25% discount on premiums in April
AAA: 20% refund between for policyholders with insurance in effect from March 16 to May 15
Allstate: 15% discount on premiums in April and May
American Family Insurance: $50 one-time payment for each car insured
Amica: 20% credit on April and May premiums
Auto-Owners Insurance: 15% refund on April and May premiums
Chubb: 35% discount on April and May premiums
Cincinnati Insurance and Casualty: 15% credit on April and May premiums
CSAA: 20% refund on two months premium
Encova: 15% discount on April and May premiums
Farmers Insurance: 25% credit on premiums in April
Geico: 15% percent credit for auto and motorcycle customers whose policies renew between April 8 and Oct. 7 and new policy purchases between that time frame.
Hanover Insurance Group: 15% discount on April and May premiums
The Hartford: 15% refund on April and May premiums, only for policies in effect as of April 1
Liberty Mutual: 15% refund on two months of premiums, refunds begin starting April 7
Kemper: 15% credit on April and May premiums
MetLife: 15% credit on April and May premiums
Mercury Insurance: 15% credit on April and May premiums
Nationwide: $50 one-time refund per policy as of March 31 refunds will be credited automatically within 30 days to the current payment method on file
Next Insurance: 25% discount on April premiums
Safeco: 15% refund on April and May premiums starting April 7
Travelers: 15% credit for April and May premiums
Michigan Insurance Refunds Start This Week When Drivers Should Expect Their $400 Checks
$400 auto insurance refund checks to arrive start arriving this week
Michigan drivers who had their vehicle insured by Oct. 31, 2021 will see their auto refund arrive in their bank account over the next 60 days. The refunds could arrive as soon as this week.
DETROIT – Michigan automobile owners are about to receive a $400 check for every single vehicle they insure in the state and payments will start hitting bank accounts and mailboxes as early as this week. But there are a lot of people with a lot of questions that need to be answered.
The $400 refund checks issued to drivers are intended for those who had their vehicles insured by Oct. 31, 2021. The refund is part of bipartisan auto reform legislation passed in 2019 that requires the Michigan Catastrophic Claims Association to issue money back to drivers.
Over the next 60 days, the $400 refunds owed to drivers will be deposited electronically in bank accounts. Gov. Gretchen Whitmer first announced the rebates in December 2021, with guarantees that refunds will be transferred from the MCCA to insurers by Wednesday, March 9.
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But, while it seems straightforward enough, there are a few things to note. Below are the most common questions about the refunds that everyone needs to know.
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Will Drivers That Didn’t Select Unlimited Pip Still Get A Refund
Yes. According to DIFS, all vehicles with a proper insurance plan by Oct. 31, 2021, will get a refund.
While reforms opened up the option for drivers to pay less for reduced coverage relating to personal injury protection, selecting one of the available options other than unlimited will not affect the refund amount.
How To Avoid Getting Scammed
The BBB’s tips for avoiding a scam:
- If you are contacted, stay calm and don’t act immediately, no matter how dramatic the story is.
- Dont respond to unknown calls, texts or emails. If you think the message may be real, contact your insurance provider directly.
- Be on the lookout for look-alikes. Scammers hide behind well-known names and often spoof existing company names, websites and caller IDs. Call your insurer directly if you think that is necessary.
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You’re Probably Owed A Car Insurance ‘stimulus Check’ Lawsuit And Critics Say
While the White House seems to have stopped entertaining the idea of a fourth stimulus check, you may be able to convince your car insurance company to hand out some COVID-19 cash of its own.
Some providers who saw their profits soar during the Great Driving Slowdown of 2020 already offered discounts and rebates to policyholders. Yet government officials, advocacy groups and a class-action lawsuit are arguing it wasnt nearly enough.
A new analysis finds insurers only returned a third of the extra money they made. Thats why critics are pushing for billions more in relief, even as insurers go back to hiking premiums.
So if you’re back to paying full price while your car still spends most days in the driveway, here’s how you might get another discount from your insurer plus a few other strategies to slash your monthly bill.
How To Reduce The Cost Of Insurance
Even with the refund, Michigan policyholders pay some of the highest auto insurance rates in the country. Michigan is just one of 8 states where drivers pay more than $2,000 annually for car insurance, joined by Florida, Louisiana, New Jersey, New York, Kentucky, Nevada and Delaware, according to Policygenius data.
Overpaying for auto insurance can take funds from your monthly budget that can be used to cover other necessary expenses, like groceries or utility bills. If you’re looking for ways to save money on car insurance, consider the following strategies from the Insurance Information Institute :
- Raise the deductible. A higher deductible will lower your monthly premium, but it will cost you more out of pocket if you have to file a claim.
- Bundle insurance policies. Insurance companies that offer auto and home insurance, for example, may offer a multi-policy discount.
- Look for other discounts. You may qualify for a discount for safe driving, low mileage and even good grades for students. Taking a defensive driving course may also lower your monthly rate.
- Maintain good credit. Drivers with a well-established credit history may benefit from lower car insurance costs.
- Shop around across insurers. Car insurance premiums vary from one company to another, so it’s good to get at least three quotes from different insurers.
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Compare Car Insurance And Save Up To $500 A Year
If you haven’t compared car insurance recently, you’re probably paying too much for your policy. Getting quotes from multiple insurers used to be time-consuming, but today’s technology makes it easy.
Using a free site like Pretected is easy and could help you save up to $500 a year on car insurance. In mintues, their “smart matching” system will provide tailor-made quotes from insurers that can meet all of your coverage needs – and your budget.
Stay protected on the road and find more affordable car insurance in minutes with Pretected.
Are There Refunds For Insured Historic Vehicles
The MCCA only charges 20% of their typical assessment for historical vehicles due to their limited allowable use, DIFS says. As long as the vehicle was injured by the appropriate deadline, drivers will get a refund of $80.
DIFS also created a FAQ site for drivers to peruse if they have any questions.
Any drivers that are eligible to receive a refund but don’t get a check by the May 9 deadline can contact their insurance company with questions. They may also contact the insurance department with concerns Monday through Friday 8 a.m. to 5 p.m. at 833-ASK-DIFS or emailing [email protected].
Why drivers are getting refund checks
It was recently announced that Michigan drivers are getting some money back, but why?
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Delaware: $300 Rebate Payments
Delaware sent relief rebate payments of $300 to taxpayers who filed their 2020 state tax returns. The one-time payment is possible due to a budget surplus. Couples filing jointly will receive $300 each.
Payments were distributed to most eligible Delaware residents in May 2022.
Instructions to claim the rebate havent yet been released for residents who havent filed a 2020 state tax return. Instructions are anticipated to be announced by Oct. 17.
Check your rebate status or get answers to frequently asked questions from the Delaware Department of Finance.
What Are Other Ways I Can Save Money On My Auto Insurance Right Now
Relief programs aren’t the only ways that drivers can cut their auto insurance costs down during these unprecedented times. Experts suggest that policyholders looking for more ways to save can shop around for other insurers offering better rates, review their coverage levels, inquire about eligible discounts and change their driving status.
Shop around: Policyholders who are up-to-date on premium payments may be able to save hundreds of dollars by shopping around for companies offering better rates for certain rating factors.
“If you’re waiting for a refund, then you may want to hold off on switching until that comes through,” said Megna.
Review your coverage levels: Reassess if coverages and deductibles that accompany your comprehension and collision coverage still fit your needs. For example, if you have a policy with liability, comprehensive and collision on an old car with low value, you could drop both the optional comprehensive and collision coverages.
Check for eligible discounts: Auto insurers may offer discounts ranging from driver history, training, affiliations and demographics. You may even be able to reduce your rates by bundling both your home and auto insurance with the same company. Policyholders should ask an insurance agent about eligible discounts and opportunities to save.
Change your driving status: “Besides getting this relief, you can call your insurance company and ask them to change your status,” said Hunter.
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