Why Is Nearly Every Michigan Driver Getting $400 From Their Car Insurance?

Car insurance can feel like a real beating. For many Americans is a beating. High premiums based on generalizations and prejudices keep many people from having the car insurance they want or need. However, Michigan drivers are about to get their due, at least most of them. Next Spring, all Michigan drivers who were paying for car insurance as of Halloween of this year are getting a $400 check from the state government. 

Cars in traffic
Cars in traffic | Justin Sullivan/Getty Images

Which state has the most expensive car insurance? 

Michigan has had the most expensive car insurance by far for decades. According to The Drive, since the 1970s, Michiganders have been required to carry unlimited personal injury coverage along with normal car insurance. As you might guess, this is not cheap. 

The office of Michigan Governor Gretchen Whitmer has been looking into this as a part of a massive $3 billion surplus in the Michigan Catastrophic Claims Association (MCCA) fund. This surplus will be returned to insurance companies starting March 2022. 

The Drive notes that since 1978, the MCCA has charged drivers annual fees for personal injury coverage. These fees get spread out among the drivers of Michigan to help the individual cost. Between less commuting due to COVID, as well as the lockdown from last year, the Nonprofit insurance group has made fewer payouts lately. This surplus is what will be returned to the drivers next Spring. 

How do Michigan drivers get their insurance paybacks? 

As we mentioned earlier, every Michigan driver with insurance as of Oct. 31, 2021, will get the $400 payout. This check will come in the mail without any action needed by the individuals. The way it works is, come March of 2022, some of the MCCA’s surplus will be returned to insurance companies, which will directly pass that money back to clients. 

Only one group of drivers/insurance plans will be excluded from this bounty, the cars with antique plates. Since these vehicles are far cheaper to insure (due to driving constraints), the MCCA will only pay these policyholders $80. 

But wait there’s more 

Michigan Governor Gretchen Whitemer standing in front of a Ford Pickup truck.
Michigan Governor Gretchen Whitmer | Bill Pugliano/Getty Images

Not only does every Michigander paying for car insurance since Halloween get a check, but the Governor’s plan also says that drivers will get a $400 check for every car meeting the requirements. This could be a serious payday for any car collectors out there on the up and up with their whole fleet insured. 


Car insurance is always a pain. We have to have it, and when we need it, it’s super helpful. However, the money we pay in rarely comes back to us in a way that feels good. This situation in Michigan might truly be the first time that car insurance has ever been a truly rewarding and enjoyable experience. So, enjoy Michiganders. Enjoy the spoils of having the most expensive car insurance policies in the country. Y’all earned it.

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