Refund of Vehicle License Fee on Total Loss Vehicles

Vehicle License Fee Refund

California law provides for a prorated refund of the Vehicle License Fee (in lieu property tax) portion of the registration fees paid when your vehicle becomes:

• A Constructive Total Loss: A vehicle which has been wrecked, destroyed, or damaged to such an extent that the owner, or the insurance company which insured the vehicle, considers it uneconomical to repair. To be considered a constructive total loss, the vehicle cannot be repaired by or for the person who owned the vehicle at the time of the event resulting in the damage. A Salvage Certificate must be applied for and issued on a constructive total loss vehicle as required by Vehicle Code §11515. OR
• An Unrecovered Total Loss: A vehicle subject to registration which has been stolen and not recovered within 60 days of the date the theft was reported to the police.

Who is eligible for a refund?

The owner of the salvage vehicle may request a refund of the prorated Vehicle License Fee. The owner of the salvage vehicle can usually be determined as follows:

• If you retain the salvage following a determination by your insurance provider that your vehicle is uneconomical to repair and:
• no repairs are initiated by you or in your behalf and
• you apply for a Salvage Certificate,

If you receive a settlement for your loss and possession of the salvage vehicle is retained by an insurance provider or their agent, then the insurance provider is the owner of the salvage vehicle.

NOTE: If you are not sure if the VLF refund was included as part of your settlement you should contact your insurance provider for verification. Persons who were cited for violations of Vehicle Code §§23152, 23153, or 23103 as specified in §23103.5 (sections related to driving under the influence of alcohol or drugs), incidental to the loss, are not eligible for this refund.

How is the refund amount determined?

The amount of the Vehicle License Fee refunded is based on one-twelfth of the annual Vehicle License Fee for each full month that remains until the vehicle registration expires. The Registration Fee, Weight Fee and miscellaneous fees are not subject to refund. A total loss vehicle partial VLF refund service fee will be deducted from each refund.

How do I request a refund?

You will need to submit a completed Application for Vehicle License Refund (REG 65). Side A of the application is completed for an unredovered total loss vehicle. Side B is completed for a constructive total loss vehicle. The license plates must be surrendered unless they are environmental (personalized) plates assigned to the owner.

You can obtain this form from your local DMV office or by mail, call DMV's automated phone service 24 hours a day, 7 days a week at 1-800-777-0133. To speak to an operator call between the hours of 8 a.m. and 5 p.m. Monday - Friday, Pacific Standard Time.

All refund checks will be issued from DMV Headquarters in Sacramento.