Automatic $400 payments to go out by May date to millions of drivers – are you eligible?

MILLIONS of drivers in Michigan are set to receive automatic payments worth $400 per vehicle by May.

The cash could come in handy as inflation continues to increase, with no fourth stimulus check in sight.

In December, Governor Gretchen Whitmer announced that the Michigan Catastrophic Claims Association (MCCA) had approved a $3billion refund for auto insurance policyholders.

It came after it recorded a $5billion budget surplus.

The Sun first wrote about the refunds in December, but consumers are being reminded about the cash as the payout date is nearing.

Mrs Whitmer said at the time: "Michiganders have paid into the catastrophic care fund for decades, and I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders."

The surplus funds will be turned over by the MCCA to the insurance companies operating in Michigan by March 9, 2022.

The insurers are then required to issue refunds via check or ACH deposit to consumers as quickly as possible, but no later than May 9, 2022.

Drivers do not have to apply to claim the checks as refunds will be issued by the state’s Department of Insurance and Financial Services automatically.

According to the state of Michigan, it has 7.1million licensed drivers, over 1.6million of whom are age 65 or older.

Who is eligible for the $400 refund?

If a resident had a vehicle insured as of 11.59pm on Oct. 31, 2021, they will receive a refund.

Motorcycles and RVs are eligible for a refund as long as they have minimum insurance requirements.

People who are eligible for a refund should get the money through their insurance provider.

Refunds must be made in the form of a check or ACH deposit and cannot be made in the form of a credit to the policyholder’s account.

Rules and regulations about this refund have been outlined by Michigan's Department of Insurance and Financial Services.

The Sun explains how to jump-start your car and how to check your transmission fluid.

We also reveal how to be prepared when you are caught in a snowstorm.