Still no fourth stimulus check, but you may be able to get a $ 400 insurance refund
Still no fourth stimulus check, but you may be able to get a $ 400 insurance refund

Still no fourth stimulus check, but you may be able to get a $ 400 insurance refund

Here is one of the most important things to note stimulus check as we come to the end of 2021, with no possibility of further payments from the federal government in sight at this time. Individual states around the country can certainly take the initiative to do their own thing. As Michigan prepares to do, for example, by issuing insurance reimbursement checks worth a few hundred dollars to eligible drivers. Other states, meanwhile, have decided to issue their own stimulus checks. For everything from bonuses to teachers to simply giving residents their own share of a budget surplus.

$ 400 insurance reimbursement for Michigan drivers

Michigan’s plan is reminiscent of insurance company Allstate’s announcement early in the pandemic to offer partial reimbursements to customers. Corresponding California Insurance Commissioner Ricardo Lara leaned on car insurance companies in this state earlier this year to cough up even greater refunds to customers.

What Michigan does, meanwhile, is only similar in form – not in the motivation behind it. While these other developments are directly related to the pandemic, insurance reimbursements in Michigan come from something else. Specifically a 2019 car insurance reform law in the state.

“Michiganders has been paying into the Disaster Care Fund for decades, and I’m glad that (Michigan Catastrophic Claims Association) developed this plan so quickly after unanimously approving my request to return excess funds to Michigander’s pockets,” said Governor Gretchen Whitmer . in a statement earlier this month.

Prior to the 2019 law, Michiganders paid some of the highest car insurance rates in the country. These refunds expire on March 9, 2022, and drivers do not have to do anything to get the checks.

More controls

Michigan’s efforts come as insurance companies selling car insurance posted nearly $ 30 billion in profits last year. Of course, they did so for a very obvious reason. According to one Consumer Federation of America report? Everything from the number of miles driven to the frequency of car accidents plummeted as millions of people stayed home amid the Covid pandemic.

In addition, this report shows that these insurers raised about $ 42 billion in profit premiums last year. While they only give $ 13 billion back to consumers in the form of “premium relief.”

Lara’s office earlier this year, meanwhile, said it had helped return up to $ 2 billion in insurance premium exemption to drivers. Last year, insurance company Allstate decided to offer partial reimbursement to customers. Specifically for their monthly premiums for April and May 2020. What it amounted to was a return of more than $ 600 million in premiums to customers.

At the federal level, meanwhile, we are still waiting to see what opportunities for stimulus checks will emerge in January. The Senate, for example, will again try to extend stimulation check of child tax deduction another year.

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