Auto insurers have 8 days to develop refund plans and communicate with customers
(6/2/2020) - Michigan auto insurance companies have just over a week to develop plans for issuing refunds or premium waivers to policyholders due to the coronavirus pandemic.
Because most drivers were urged to stay home under coronavirus restrictions for much of March, April and May, auto insurers incurred less risk due to much less traffic on roadways around the state. So the state is ordering some money be paid back to drivers.
“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 Gov. Gretchen Whitmer. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.”
Insurance companies have until June 10 to file plans with the Michigan Department of Insurance and Financial Services showing how much customers will receive, how they arrived at that figure and how funds will be dispersed.
The plans also must include an outline of communications with customers about the benefit and options for people who expect long-term changes in driving habits, such as job loss of working from home.
“Consumers may realize additional savings by modifying their policies to reflect their current driving habits," said Department of Insurance and Financial Services Director Anita Fox. "Drivers should contact their agent to discuss garaging a car or making other changes to save on their premiums.”
Anyone with auto insurance questions or concerns that cannot be resolved with their insurance company can call state regulators at 1-833-ASK-DIFS or email firstname.lastname@example.org.
Drivers should look for significant additional savings from changes to Michigan's auto insurance law when their policies renew after July 1.