California’s MCCA has advised that refunds from our Auto Insurance No-Fault Reform Law passed in 2019, are on their way to California auto insurance consumers. Because the changes made by this law resulted in a large surplus in the current MCCA Fund, the law required a refund to consumers of the surplus.
Do I get a refund?
If you were the Named Insured on an auto policy as of October 31, 2021, with at least one vehicle carrying liability protection, you will indeed receive a refund.
How much is my refund?
Refunds were set at $400 per vehicle or motorcycle you had insured with liability coverage as of October 31, 2021. Notice that we said with liability coverage. Any vehicles with storage insurance as we call it, (comprehensive only), are not eligible for this refund; neither are trailers.
If you have any classic vehicles insured as antique or historic vehicles, that refund is only $80 per vehicle with liability as of 10/31/21; due to the reduced cost of MCCA on those vehicles.
When do I get my refund?
The MCCA Fund will begin wiring funds to insurance companies beginning on March 9th. We are being told that due to the high amount of money being distributed and the large number of companies, this process will take a few days. Refunds are to be distributed to consumers no later than 5/9/2022.
Is this refund in a check?
That depends on your insurance company and your method of payment. Some companies are returning physically checks and some are providing electronic refunds. The MCCA Board of Directors did stipulate that the refunds not be provided as a credit on account.
What if I have questions?
We are here and happy to answer any additional questions you may have. We would recommend that you wait until 4/15 and then contact us; giving companies time to print and mail checks where applicable.
NOTE: Commercial and Business vehicles have a different amount of refund based on a calculation done by the MCCA board.
Fleet vehicle refunds will depend on how the vehicles are insured under the commercial or business auto policy:
- For vehicles that are individually scheduled on the policy, the full $400 per vehicle refund will be given for each vehicle.
- For dealer or per-plate insurance policies, the refund of $400 will be calculated and sent on a per-plate basis.
- For fleet policies written on a gross-receipts basis, or for other policies where vehicles are not insured individually, the refund will be calculated as 135% of the in-force commercial auto PIP written premium related to those policies.