Michigan drivers can expect a rebate. | stock photo
Michigan drivers can expect a rebate. | stock photo
The state of Michigan has ordered auto insurance companies to provide rebates to drivers as the result of COVID-19.
“This order will ensure all insurers are issuing appropriate refunds or premium waivers to their customers,” Department of Insurance and Financial Services Director Anita Fox told the Detroit Free Press. “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.”
The Detroit Free Press reports that auto insurance companies must file auto rebate plans with the Department of Insurance and Financial Services by June 10. These plans must include information on how customers will be informed of a potential refund, the options for individuals whose driving habits have significantly changed -- such as those who are now working from home -- how much customers will receive, how refund or premium waiver amounts were calculated and how the payments will be distributed.
“Michiganders have been staying safe and staying home, and they should see the benefit in reduced auto insurance rates,” Gov. Gretchen Whitmer told the Detroit Free Press. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.”
State Farm is one of many auto insurance companies that has already been offering refunds as customers have been driving less and getting into fewer accidents amid the pandemic, according to Crain’s Chicago Business. The company revealed it would be providing $2 billion in credits on policyholders’ future bills starting in June.
In addition to seeing financial relief from auto premium refunds and waivers, Michigan drivers are expected to pay lower costs under a new no-fault insurance law affecting policies that are renewed or issued after July 1. The Michigan.gov states the law enables drivers to drop unlimited personal injury protection and choose coverage based on their budget and needs.
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