View this article online: https://www.insurancejournal.com/news/midwest/2020/06/02/570775.htm
Auto insurers in Michigan have been ordered to issue refunds or premium waivers to policyholders due to reduced driving and resulting decrease in risk to insurers brought on by the stay at home orders related to the COVID-19 pandemic.
In a statement, Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox said the “order will ensure all insurers are issuing appropriate refunds or premium waivers to their customers.” She added that consumers should discuss with their agents about possible changes in their driving habits that could help in further reducing the cost of their auto insurance.
“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 said in the DIFS’ release. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.”
DIFS Order No. 2020-10-M sets a deadline of June 10, 2020, for insurers to submit filings that include the refund or premium waiver amount, information on how that amount was determined, and how consumers will receive payments. It also requires communication plans to inform customers about the refund and the options available to those with long term changes in driving habits, for example those who have been laid off or are telecommuting.
The premium waivers or refunds are in addition to any savings resulting from the upcoming changes to Michigan’s auto insurance law, which has shown reductions to statewide average premiums for Personal Injury Protection medical coverage for policies issued or renewed after July 1, 2020.
Source: Michigan DIFS