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Finding & Saving Money W/ Your Insurance & the DMV During Covid-19

The California Department of Insurance and California Department of Motor Vehicles have been implementing some changes to our everyday driving during Covid-19.

Here’s the short list of how to get some money back, what you can wait on and where to go when you finally decide to renew that drivers license.

Insurance Companies Refund Unused Premiums

Insurance companies in California have been ordered to refund unused premiums to California drivers through March and April.

California Insurance Commissioner Ricardo Lara sent out a bulletin on April 13th addressing the changing insurance conditions during Covid-19.

The bulletin reads, “As a result, projected loss exposures of many insurance
policies have become overstated or misclassified. This is especially true for policies
where premiums are based partly on measures of risk such as number of miles driven,
revenue, and payrolls which have all dropped significantly because of COVID-19.”

Insurance companies have 120 days to comply with the order and Commissioner Lara stated he will send another bulletin if conditions persist through may.

– Who Qualifies –

• Private passenger automobile insurance
• Commercial automobile insurance
• Workers’ compensation insurance
• Commercial multiple peril insurance
• Commercial liability insurance
• Medical malpractice insurance
• Any other line of coverage where the measures of risk have become substantially
overstated as a result of the pandemic.

Temporary Delivery Drivers Covered Under Personal Insurance

Temporary delivery drivers using their personal insurance for commercial purposes are being covered under Insurance Commissioner Lara’s order.

The California Department of Insurance found it impractical and untimely to issue temporary commercial insurance to all essential delivery workers.

The notice put out by Ricardo Lara says, “Therefore, the Department requests insurers not to deny a claim under a personal auto policy solely because the insured was engaged in providing delivery service on behalf of a California essential business impacted by the COVID-19 related closures, and the delivery driver was operating within the course and scope of their duties on behalf of such essential business.”

Expired License & Registration

The California Department of Insurance issued a notice on March 16 allowing drivers with expired licenses and registration a 60-day grace period ending May 16th.

According to a press release, Commissioner Lara called on auto insurers to refrain from using the expiration of policyholders’ drivers licenses or vehicle registrations for 60 days, from March 16, 2020, for any of the following reasons:

  • To affect a driver’s ability to secure and maintain auto insurance coverage;
  • To affect a driver’s eligibility for a Good Driver discount;
  • To determine eligibility for a California Low Cost Automobile policy;
  • To impact the rates charged to any driver.

The notice states that it will be reevaluated at the end of the 60-day period.

DMV Services

California’s Department of Motor Vehicles (DMV) has ramped up their online service portal since offices have been closed and appointments suspended since March 27.

The California DMV has temporarily waived the required in-person visit for license renewals and ID cards. If your ID or license is expiring in March, April or May you can renew online or by mail.

You must request a temporary drivers license extension after renewing your license online.

– Other DMV Actions –

  • Seniors over 70 are automatically receiving 120 day paper extensions on expiring licenses
  • Drivers can request their paper extension, otherwise will not be sent anything notifying them of the extension
  • Suspended licenses are not eligible for automatic extensions
  • Commercial licenses that are expiring have been extended through June 30
  • Real ID enforcement date is now October 2021

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Finding & Saving Money W/ Your Insurance & the DMV During Covid-19