LANSING, Mich.—Governor Gretchen Whitmer announced Tuesday that $3 billion in refunds are on their way to Michigan drivers.

The governor’s office said that the Michigan Catastrophic Claims Association (MCAA) acted on Whitmer’s call to return surplus funds to Michigan policyholders.

Refunds of $400 per vehicle will be processed by the MCAA.

Drivers should expect to receive checks in the second quarter of 2022, the governor’s office said.

“These refunds and the recently announced statewide average rate reductions are lowering costs for every Michigan driver,” Whitmer said in a press release. “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. We are working together to put Michigan drivers first, and I am directing DIFS to ensure that the MCCA and Michigan’s auto insurance companies accurately, fairly, and promptly issue these refunds.”

The refund plan submitted to the Michigan Department of Insurance and Financial Services will return money to every Michigander with an auto insurance policy in force as of 11:59 p.m. on October 31, 2021.

Eligible consumers do not need to take any action in order to receive the refund.