According to MoneyWise, another round of refunds is on the way to drivers in one state after the governor accused insurance companies of hoarding billions of dollars in extra funds.
Governor Gretchen Whitmer called for the Michigan Catastrophic Claims Association to distribute funds from its $5 billion surpluses back to citizens, insured Michigan drivers will receive refunds.
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Since June’s $5 billion surplus report, Whitmer wrote to the Motor Carrier Compensation Association (MCCA) requesting that it immediately refund insured drivers. In a unanimous vote on Wednesday, the association’s members agreed with Whitmer’s request.
“Billions in surplus funds should not be held by insurers to invest for their own profit or be conditioned on renewal of a policy,” Whitmer wrote in a letter earlier this month.
The Michigan Catastrophic Claims Association is accused of holding $5 billion more than necessary in a fund that reimburses insurers for expensive medical claims.
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The insurance companies that make up the association have quickly agreed to offer a refund — as the law requires — though they’re hesitant to do as the governor asks and distribute the entire surplus.
Most complaints in other states are related to overcharging during the pandemic.
If you haven’t contacted your insurer yet, you might have free cash waiting for you. And with pressure mounting, your provider might be open to reviewing your premium, especially if you’re still driving less than before.
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Moneywise also suggests some more ways to give your bank account a boost until the economy bounces all the way back.
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Slash your other insurance bills. By doing some simple comparison shopping using online tools, you can save hundreds on your homeowners insurance and get an instant life insurance quote.
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Cut the cost of your debt. If you’ve relied on credit cards throughout the pandemic, expensive interest is bound to catch up with you.A lower-interest debt consolidation loan can fold your balances into a single, lower-interest payment — and help you find freedom from your debt sooner.
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Invest your spare change. Using a popular investing app, you can automatically invest the “change” left over from everyday purchases. You won’t even notice the deposits as you build or round out your investing plan.
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