If you live in Michigan, or plan to move there soon, you know that car insurance premiums can really hurt your wallet—especially if you’re young, male, and live in an urban area.
Luckily, though, there are a number of ways to get some of that money back. If you qualify for one of the following reasons below, you may be able to get up to 20% of your money back when you renew your policy—and that could add up to hundreds of dollars!
Who is eligible to receive a refund?
YYou must have paid for car insurance in MI between July 1, 2018 and December 31, 2018. You cannot receive multiple refunds—so if you paid car insurance premiums twice during those months (for example, due to a moving violation), you’ll only receive one refund. Be sure to have your insurance ID card handy when filing! If you are eligible, your first $200 of premium payments will be refunded by February 28th, 2019.
For more information about eligibility requirements and how to file for a refund visit www.michigan.gov/carinsurancerefund or call 517-335-8388 Monday through Friday from 8:00 AM – 4:30 PM EST.
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How much will the refund be?
Getting an insurance company to cut you a check for more than what you paid for your policy is no small feat. Though it might sound like charity, most refund requests are denied; however, there are some ways to increase your chances of getting that refund check.
As with any dispute with an insurance company, know your rights and be prepared when you talk to them or write them. If they deny your request, ask why—you may have uncovered something you can use to make another appeal. If all else fails, contact your state’s department of insurance and ask for help resolving the issue.
Are motorcycles and RVs eligible for the refund?
Under Senate Bill 613, RVs, motorcycles and personal watercraft are now eligible for a partial refund of their registration fees. For example, an RV that costs $500 per year to register can expect a $120 refund from Dec. 31, 2019 through Nov. 30, 2021.
And here’s more good news: This applies only to new registrations, not renewals or transfers. So if you currently own an RV but haven’t yet registered it for 2020 or later years – congratulations! You could be eligible for a big refund. If you have questions about your eligibility, contact your local Secretary of State office at 800-767-6424 (or visit www.michigan.gov/sos).
Will my refund be taxable?
While you may not have had any income tax liability in previous years, your refund will likely be taxed at your current filing status. If you’re filing as single, head of household or married filing separately, it will likely be taxed at your marginal rate. If you’re married and filing jointly, it will likely be taxed at your combined federal and state marginal rates.
And if you’re married but file separately, your refund will be taxed at your individual rate. In other words, even if you didn’t owe taxes last year, there is no way to avoid paying taxes on your car insurance refund next year.
How will the refund be sent?
The easiest way to get a refund is via direct deposit, but if you don’t have that option, you can also opt for a paper check. If you go with direct deposit, make sure your bank info is up-to-date so it doesn’t bounce. If your money bounces back after trying to cash it, it will cost you up to $35. It’s always smart to double-check before any big transaction or refund! When do I file my taxes?:
You have three years from when you received your car insurance premium notice to file a claim and receive a refund. So, since we are currently in 2018, 2019 would be too late—but 2023 would be fine!
Steps to Get a Refund on Your Michigan Car Insurance:
The simple way to get a refund on Michigan car insurance is by following the steps below.
Step 1: Decide What Type of Car Insurance You Want
When shopping for car insurance, you will notice there are many different types of policies and rates. You will want to make sure you purchase insurance that works best for your personal situation. The most popular types of policies include liability only, comprehensive, and collision coverage. Liability only covers damages caused by you while driving your vehicle.
Step 2: Know When To Buy
It’s time to buy car insurance when your license is due. You can renew your policy at any time prior to its expiration, but you will pay more for an annual renewal than for two six-month policies. It’s possible that your auto insurance premiums could increase each year.
This will be based on factors such as your driving record and where you live. If you’re paying close attention, though, it might be possible for you to purchase coverage before your rates go up significantly from one year to another.
Step 3: Check Out Other Insurers
After giving Progressive five business days, you may want to check out other insurers’ rates. Rates change quickly, so there’s no guarantee your lower rate will still be available. Once you have another quote, go back to your old insurer and ask them for a rate adjustment.
If they say no or if their quoted amount is higher than expected, you can then cancel your policy with them and switch over permanently.
Step 4: Shop Around For The Best Deals
If you shop around, you’ll find that prices vary greatly among insurance providers. To ensure you get value for your money, contact at least 3 insurance providers and ask them: 1) if they offer car insurance policies; 2) what their annual premium is; and 3) how many days after an accident your claim will be paid.
This information will help you determine which provider offers car insurance with low premiums and high customer service. When comparing quotes, be sure to factor in any discounts each company is offering.
Step 5: File A Claim
There are two types of insurance coverage: liability and physical damage. Liability is what covers you if you’re responsible for injuring someone else, while physical damage insurance is what covers your vehicle if it’s been damaged by something outside of your control.
If you’re filing a claim for physical damage, keep all maintenance records, pictures of accidents or other events that resulted in damages and contact information for repair shops who have worked on your car previously.7: Determine how much coverage you need.
If you own a car, you need auto insurance. But sometimes your circumstances change (you move, cancel services, etc.) and your insurance premiums aren’t adjusted accordingly.
To ensure that you are getting the lowest rate possible for any given year, make sure that you follow these steps: Cancel your insurance if it is not required by law; Call up your provider or do some research online until you find out how much other companies charge for similar coverage; Don’t be afraid to shop around!