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CA Department of Insurance

Consolidate Vehicle Assessment Invoices

SB 476 Auto Consumer Assessment –California Insurance Code (CIC) Section 1872.81 Commencing July 1, 2014, the assessment is reduced from $0.30 to $0.25 until January 1,2016, and not exceeding $0.25 thereafter, on each vehicle under an insurance policy issued in this state by the insurer. Thus, policies in force prior to July 1, 2014, will be assessed at the$0.30 rate and policies in force on or after July 1, 2014, will be assessed at the $0.25 rate.

For further information and details:SB476 Impact and FAQs

Background Effective with the billing for the calendar quarter ended March 31, 2002, the California Department of Insurance has consolidated into a single invoice the three vehicle assessment billings which were invoiced separately in the past. Recent adoptions of conforming regulations [See the California Insurance Code (CIC) Sections and the California Code of Regulation CCR Sections referenced below] now provide uniform assessment guidelines which make consolidated invoicing practical for the following assessments:

  1. Investigation and prosecution of automobile insurance fraud - $1.00 annual fee per insured vehicle. CIC Section 1872.8, California Code of Regulations Section 2698.60 et. seq.
  2. Consumer service functions related to automobile insurance - $0.25 annual fee per insured vehicle. CIC 1872.81, California Code of Regulations Section 2698.68.
    1. Automobile fraud interdiction program - $0.50 annual fee per insured vehicle. CIC Section 1874.8, California Code of Regulations Section 2698.70 et. seq. 

Please note that the quarterly assessment per insured vehicle is $0.4375. The $0.4375 assessment is determined by dividing the sum of the three annual fees by four ( $1.00 + $0.25 + $0.50 = $1.75/4 = $0.4375 ). The total amount of the assessment should be rounded to the nearest dollar.

For example: $0.4375 X 895,000 vehicles = $391,562.50. In this example the Insurer would remit $391,563.00.


Key Uniform Provisions For All Three Insured Automobile Assessments 

  • Payment Calculation Each calendar quarter shall be calculated by identifying the number of vehicles (commercial and private passenger) in this state for which a policy of insurance was in force as of the first day of the quarter, plus the number of vehicles newly insured at any time during the quarter. Calculate the total payment due by multiplying one-fourth of the current annual fee of $1.75 per vehicle ($0.4375) by the total number of vehicles.
  • Vehicle Definition Insured vehicles shall include both commercial and non-commercial vehicles. Section 670 of the California Vehicle Code defines a vehicle as a device by which any person or property may be propelled, moved, or drawn upon a highway, excepting a device moved exclusively by human power or used exclusively upon stationary rails or tracks. For example: insured motor homes and trailers are to be included in the non-commercial count.
  • Invoice Due Date Invoice certification and payment are due within thirty (30) days of the invoice date. Assessments paid after forty-five (45) days of the invoice date will be charged a late fee in accordance with CIC Section 12995. Future invoices will be mailed to insurers on or about 15 days prior to the end of each quarter.
  • Invoice Certification Sign and Return Invoice certifications must be returned, even if the insurer had no insured vehicles for the assessed calendar quarter. The signature of an Officer of the insurer, "Under penalty of perjury pursuant to the laws of the State of California, that the foregoing is true and correct" has been added to the invoice.
  • Examination of Insurer Records The Commissioner may request verification of the number of vehicles insured under a policy of insurance. Pursuant to CIC Section 730, the Commissioner has begun examining insurers' records for vehicle assessment payment accuracy and compliance during financial and market conduct examinations.
  • We hope that the consolidated invoicing is as beneficial to insurers as it is to the Department. Should you have any questions regarding this message or the assessments described herein, please contact Wendy Kwong at (916) 492-3234 or Carolina Bravo (916) 492-3237.

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