Anyone Else told their auto insurer NOT participating...?

I have a retired friend, disabled, using his insured car mostly for shopping and appointments. I asked if he'd received his $400 refund ordered by the state [Michigan Department of Insurance and Financial Services [DIFS]]. He hadn't, and the insurance company [a small store-front entity] told him on the phone not all insurances participated in this state order. What?!

I received my refund a few weeks back. I'm not with one of the big TV-ad insurances, but otherwise a fairly large Michigan-based one. Anyone else told that their insurer was exempt from paying the $400 refund?

If I were told this I would quickly pull my coverage. I'm with Progressive now and recently received my $400.

A company that does not even cover a $400 refund will probably give you a hard time when you actually do have to file a claim.

I know very little about this, since I’m out of state. But following the links to some “FAQ’s”, it seems very straightforward:

All vehicles that were insured as of 11:59 p.m. on October 31, 2021 are eligible to receive a refund if the vehicle was covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads [[See MCL 500.3101 and MCL 500.3103).

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Originally Posted by Zacha341

I have a retired friend, disabled, using his insured car mostly for shopping and appointments. I asked if he'd received his $400 refund ordered by the state [Michigan Department of Insurance and Financial Services [DIFS]]. He hadn't, and the insurance company [a small store-front entity] told him on the phone not all insurances participated in this state order. What?!

I received my refund a few weeks back. I'm not with one of the big TV-ad insurances, but otherwise a fairly large Michigan-based one. Anyone else told that their insurer was exempt from paying the $400 refund?

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Sounds like they're giving him some b.s. information.

"The Michigan Catastrophic Claims Association transferred the about $3 billion total to insurers March 7 and insurance companies are required to distribute the money via $400 refunds per vehicle through check or direct deposit. The distribution includes about 7.5 million policyholders."
https://www.detroitnews.com/story/ne...ow/7236059001/

Maybe call the Insurance Alliance of Michigan to find out if an insurance company can opt out of returning the State's reimbursement to insured drivers.
https://www.insurancealliancemichigan.org/

While I can't cite anything specific, I have heard warnings about scamming attempts--scammers making bogus claims of various types to entice victims to hit 'poison' websites, or other tricks. Since a lot of people will be anticipating this payback it would seem to make for easy trickery. So beware of what you hear from unsolicited communications.

Anyone here that has State Farm receive their check yet? I was told they had to be mailed out by May 9th.

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Originally Posted by Cincinnati_Kid

... I was told they had to be mailed out by May 9th.

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That's the same date I found in some press release.

I was told that date by my insurance company too. I just got my check yesterday. I had to talk to them after looking at my account. It appears they initially tried to just apply it as a credit against my policy total. Once I called & questioned it, it got corrected. I was told the law stated it had to be distributed to policy holders. There was no way it could be credited or held by the insurance company.

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Originally Posted by jackie5275

I was told that date by my insurance company too. I just got my check yesterday. I had to talk to them after looking at my account. It appears they initially tried to just apply it as a credit against my policy total. Once I called & questioned it, it got corrected. I was told the law stated it had to be distributed to policy holders. There was no way it could be credited or held by the insurance company.

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You're not the first person that some insurance companies tried that crap with. A guy I know said his insurance company [[not one of the bigger ones) told him they were going to add it as a credit to his account. He immediately got on the horn and called the state. They corrected it quick fast and in a hurry. I don't know why some insurance companies are dragging their feet issuing those checks, it's not coming out of their pockets.

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Originally Posted by Cincinnati_Kid

You're not the first person that some insurance companies tried that crap with. A guy I know said his insurance company [[not one of the bigger ones) told him they were going to add it as a credit to his account. He immediately got on the horn and called the state. They corrected it quick fast and in a hurry. I don't know why some insurance companies are dragging their feet issuing those checks, it's not coming out of their pockets.

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They're like banks... who love nothing more than to hold onto your money 3-5 business days... except worse... 3-5 business months!! :eek:

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Originally Posted by Cincinnati_Kid

Anyone here that has State Farm receive their check yet? I was told they had to be mailed out by May 9th.

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I have State Farm. No refund yet, and it's the same story from every other person I have spoken to with State Farm. Supposedly they are not handling the refunds themselves and have hired out the process to an outside company.

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Originally Posted by Johnnny5

I have State Farm. No refund yet, and it's the same story from every other person I have spoken to with State Farm. Supposedly they are not handling the refunds themselves and have hired out the process to an outside company.

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That's a damn shame. Still waiting myself. I have friends that have receive their checks weeks ago, from Geico, Progressive, etc...

Got mine from USAA a couple weeks ago.

I'm not in that state anymore, but I would prefer it be applied as a credit to my future policy payments. It makes more fiscal sense than mailing out paper checks.

I got one for my policy back in '20 as I recall. A whopping $19 paper check. I called to see if it could be applied as a credit on my policy. They said no. The check is still in my possession un-cashed.

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Originally Posted by Cincinnati_Kid

Anyone here that has State Farm receive their check yet? I was told they had to be mailed out by May 9th.

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State Farm probably will wait until the 9th of May to send everyone his or hers check. They probably want to still collect interest off the money until the last minute

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Originally Posted by stasu1213

State Farm probably will wait until the 9th of May to send everyone his or hers check. They probably want to still collect interest off the money until the last minute

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I was told the checks were being sent out by a 3rd party working with the state. The insurance company doesn't mail them out.

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Originally Posted by Cincinnati_Kid

I was told the checks were being sent out by a 3rd party working with the state. The insurance company doesn't mail them out.

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Not sure about that... My check and envelope both said "Progressive" on them

^ Right-O. My check referenced my insurance company as well. I'm glad there were no shannigans in receiving it.

An yes, I wanted to CHOOSE rather I wanted to use the money towards future or existing insurance premiums.

I'm with a smaller insurance company our broker picked that are based out of state and received my check, from them, about 2 weeks ago

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Originally Posted by Cincinnati_Kid

Anyone here that has State Farm receive their check yet? I was told they had to be mailed out by May 9th.

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Check your mailbox. I still don't have mine, but I heard they finally started showing up yesterday!

I have two cars and two motorcycles insured with Progressive and got my checks four weeks ago. The only exception is if you have historic vehicle plates.

Our son received his check from State Farm in yesterday's mail.

My friend finally got his refund [Friday], but the customer service from his insurance broker was not good.

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Originally Posted by Zacha341

My friend finally got his refund [Friday], but the customer service from his insurance broker was not good.

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Glad he did. He might want to consider switching agents/company.