There will be 4.5 million Californians who will receive assistance through the Golden State Stimulus II plan between October 31 and January 1 to car owners affected by the COVID-19 pandemic.
In February, it was announced that Californians would receive $3.8 billion in stimulus checks following the passage of the first Golden Gate Stimulus package.
According to the California Insurance Commissioner's announcement, three auto insurance companies in California have been ordered to provide coverage for 20 percent of the driving population, so there is a need for a second part to the stimulus.
These companies include Allstate Northbrook Insurance Company, CSAA Insurance Exchange and Mercury Insurance Company.
A review will be sent directly to the residents of California who are eligible for these funds by the California Department of Finance.
As a result, to have insurance companies refund money, California Insurance Commissioner Lara announced more than $2.4 billion in premium relief for California drivers.
“Last year as the pandemic hit, millions of Californians stayed home to save lives. We drove less, lowering risks for other drivers on the road,” Lara said. “And because of that, I ordered insurance companies to return money to drivers.”
In the past few years, it has been reported that several state-level class-action lawsuits have been filed, including those brought up in Nevada and Illinois.
Several cases show refunds have been automatic for policyholders. However, many did not receive money back or even reduced rates until contacted.
Additional refunds may be issued in case of other lawsuits, resulting in additional refunds due to the outcome of these lawsuits.