A reader, Nick, let us know that the California Department of Insurance has ordered insurance companies to refund premiums for March and April to drivers and businesses due to COVID19 shelter-in-place.

The Commissioner’s Bulletin covers premiums paid for at least the months of March and April — including the month of May if “shelter in place” restrictions continue.

The Commissioner’s Bulletin requires insurance companies to provide a premium credit, reduction, return of premium, or other appropriate premium adjustment as soon as possible, and no later than August 2020.

This great new for everyone in California!!!  Our insurance company is private and they hadn’t offered to refund us any money back but according to the announcement, all insurance companies are to refund or reduced the premiums.  As you know, I’ve paid our premiums are paid in full through April 2021 so I’m definitely looking forward to a fund!

If you live outside of California, check your Department of Insurance latest announcements to see if you are getting some money back.

Thanks, Nick!


  • tammy April 18, 2020, 11:25

    I don’t think that’s what it means…. the order says “premium credit, reduction…”. Most companies have issues premium credits. I know that Amica provided a 20% reduction and other companies have similar reductions. I don’t think this Order means a complete refund of premiums. People are still doing some driving to go to grocery stores etc. and insurance companies need to be paid for providing even some coverage

    • Ms. B. April 19, 2020, 08:21

      No, I don’t want 100% back of my premiums.

      I should get back a refund vice a credit as I have paid 100% of my premiums for 12 months. I should get back 15% for March and 15% April and so forth until the shelter in place has concluded.

  • Trish April 18, 2020, 19:45

    I am assuming it will be prorated at 2/12 months (or 2/6 months) depending on what premium you paid last. So a percentage will be credited back to you, probably on your next premium statement. Haven’t read enough about it to be completely accurate at this point.

    • Ms. B. April 19, 2020, 08:16

      I just paid my annual premium of 12 months in full, I won’t get another premium statement until 2021. I am very happy to get back any money as I was not expecting it!!!

      • Nick April 20, 2020, 12:31

        Each insurer should have a post on their website indicating the amount of the credit (perhaps listed as a % of the premium) and how it will be paid. The worst case scenario is anyone who paid 12 months in advance because the insurer may simply choose to wait and apply the refund as a credit next year. Sounds nice, but insurance companies aren’t stupid, they’ll simply raise your premium and then offset it with the credit, which nets the policyholder $0.

        • Ms. B. April 20, 2020, 14:02

          Nick, their website says the same as the email that they sent saying we’d get a 15% credit towards a future installment or renewal payment. Our 2019/2020 premiums had concluded 04/11/2020 and we began a new policy 04/12/2020 – 04/11/2021 was paid in full. Keep in mind that I got a super great price on my policy after I let them know that I was no longer commuting to work. I believe the intent of the Dept. of Insurance was to give Californians financial relief by ordering all car insurance companies to issue credits or refunds by August 2020 not for them to arbitrarily decide to give me a credit in 2021. We are not talking about a lot of money but it’s my money and I want it. It’s probably less than 5% of their customers pay their premiums in full and if my premiums was due in May, I’d be happy with that 15% prorated premium and I’d not be squawking!🤣