8-K

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                    FORM 8-K
                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
                                 Date of Report

                (Date of earliest event reported): April 2, 2001
                             Motor Club of America

             (Exact name of registrant as specified in its charter)

   New Jersey                     0-671                 22-0747730
 (State or other jurisdiction   (Commission      IRS Employer of incorporation
  or organization)              File Number)         Identification No.)

                                95 Route 17 South
                            Paramus, New Jersey 07653
                    (Address of principal executive offices)

        Registrant's telephone number, including area code: (201) 291-2000
          (Former name or former address, if changed since last report)




Item 7 - Financial Statements, Pro Forma Financial Information and Exhibits.

        (c)     Exhibits

The following Exhibit is filed as part of this report:

99.1-   Motor Club of America Press Release (April 2, 2001).

Item 9 - Regulation FD Disclosure

        On April 2, 2001, the Company issued the press release attached hereto
as Exhibit 99.1



                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereto duly authorized.
Dated:  April 3, 2001
MOTOR CLUB OF AMERICA

                                        By: /s/ Patrick J. Haveron
                                           ---------------------------
                                            Patrick J. Haveron,
                                            Executive Vice President,
                                            Chief Executive Officer,
                                            Chief Financial Officer, and
                                            Chief Accounting Officer

EX-99.1

                                  Exhibit 99.1

FOR IMMEDIATE RELEASE:  APRIL 2, 2001

CONTACT:

MOTOR CLUB ANNOUNCES INCOME BEFORE FEDERAL TAXES
AS OF DECEMBER 31, 2000; COMPLETION OF AUDIT PENDING TAX ITEM

        PARAMUS, NEW JERSEY, April 2, 2001 - Motor Club of America (NASDAQ:
MOTR) ("the Company") today reported its income before Federal income taxes for
the fourth quarter ended December 31, 2000 was $646,439 compared to a loss
before Federal income taxes of $1,511,095 in 1999. Income before Federal income
taxes for the year ended December 31, 2000 was $2,999,677 compared to $102,146
in 1999. The Company also announced that it would report its net income when the
audit of its financial statements was complete, which is expected to be no later
than April 17, 2001. Being reviewed is a complex tax item related to a
subsidiary that was rendered insolvent in 1992, but is still required to
continue to be included in its consolidated Federal tax return. The Company
reported that as to this tax item, any present or future tax liabilities
established would have no impact on the operations, cash flow or surplus of the
Company's active insurance subsidiaries or on consolidated income before Federal
income taxes. Book value at December 31, 2000 is presently estimated to be
approximately $13.40 per share.

        Revenues for the fourth quarter and year ended December 31, 2000 were
$23,329,714 and $90,127,147, respectively, as compared to $17,708,809 and
$61,067,719 in the same periods in 1999.

        Income before Federal income taxes in 2000 improved as a result of a
$3,748,269 improvement in underwriting results from insurance operations. This
was the result of strong growth and improved loss ratios at the Company's
Preserver Insurance Company subsidiary, economies of scale gained from our
acquisition that enabled Motor Club of America Insurance Company to improve its
expense ratio and sharply lower expenses at North East Insurance Company.
Mountain Valley Indemnity Company's results were largely as anticipated. In
1999, Motor Club and Preserver had incurred $638,000 in losses and expenses
related to Hurricane Floyd, which struck New Jersey in September 1999.

        These improved underwriting results offset a $1,419,000 increase in
interest expense related to the Convertible Subordinated Debentures and
Promissory Notes issued in 1999 and 2000, respectively, related to the Company's
acquisitions of North East and Mountain Valley. Expenses related to those
acquisitions also declined, from $800,000 in 1999 to $354,000 in 2000.

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        With regard to the Federal tax item, MCA Insurance Company in
Liquidation and its subsidiaries ("MCAIC") are required to continue to be
included in the Company's consolidated tax return filed with the Internal
Revenue Service. Since the 1992 insolvency, MCAIC has generally continued to
generate taxable losses included in the Company's consolidated tax return.

        Under the applicable rules, the Company is entitled to, and has taken
current tax benefits for net operating losses that MCAIC and its subsidiaries
have generated since 1992. However, to the extent that the Company does not have
positive basis (as defined by the Internal Revenue Code), it may also be
required to pay future tax liabilities (which may offset the current tax
benefit) subject to certain events which may trigger such payments. To the
extent that the Company has such positive basis, it is able to and has
recognized tax benefit from these losses in prior years.

        Until 2000, the Company has had to record such liabilities once, in
1997, which it was able to eliminate in 1998 under the rules. Based on tax
information received from MCAIC (which the Company does not control) during
2000, the Company will have to establish deferred tax liabilities for such
future payments and eliminate deferred tax assets that will no longer be
realizable. Such liabilities are presently estimated to be approximately $1.9
million, with a corresponding reduction in deferred tax assets of approximately
$875,000. The Company and its independent accountants are presently reviewing
these amounts. The Company is presently evaluating whether such information
requires a restatement of prior periods or whether such information constitutes
a 2000 event. Irrespective of this accounting consideration, establishment of
these liabilities does not require payment presently, nor is the Company subject
to penalties and interest on these liabilities.

        Based on the current profitability of the Company and its active
subsidiaries, the amount of net operating loss carryforwards that both the
Company and MCAIC have available, and the application of the appropriate rules
to such matters, the Company believes it is more likely than not that such
deferred tax liabilities may fluctuate in the future. Strategies to mitigate
this future tax liability may be limited, although the Company expects to
continue to review all avenues available to it.

        Accordingly, the Company is making the necessary filings to extend the
time to file its Annual Report on Form 10-K with the Securities and Exchange
Commission pending resolution of this matter.

        Motor Club of America owns and operates five regionally focused property
and casualty insurance companies, including companies that

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specialize in small and mid-sized commercial insurance through the Preserver
Insurance Group.

        The Preserver Insurance Group consists of Preserver Insurance Company,
which writes small commercial and homeowners insurance presently in New Jersey,
and Mountain Valley Indemnity Company, which writes small and mid-sized
commercial insurance presently in New England and New York. The Preserver
Insurance Group is rated B++ (Very Good) by A.M. Best Company. American Colonial
Insurance Company plans to commence operations in New York in 2001, writing
commercial lines in tandem with Mountain Valley.

        Motor Club of America Insurance Company writes personal automobile
insurance in New Jersey and is rated B+ (Very Good) by Best. North East
Insurance Company writes personal automobile and small commercial lines
insurance in the State of Maine and is rated B (Fair) by Best.

        Forward-Looking Statement Disclaimer. This press release contains
statements that are not historical facts and are considered "forward-looking
statements" (as defined in the Private Securities Litigation Reform Act of
1995), which can be identified by terms such as "believes", "expects", "may",
"will", "should", "anticipates", the negatives thereof, or by discussions of
strategy. Certain statements are forward-looking statements that involve risks,
uncertainties, opinions and predictions, and no assurance can be given that the
future results will be achieved since events or results may differ materially as
a result of risks facing the Company. These include, but are not limited to, the
cyclical nature of the property casualty insurance industry, the impact of
competition, product demand and pricing, claims development and the process of
estimating reserves, the level of the Company's retentions, catastrophe and
storm losses, legislative and regulatory developments, changes in the ratings
assigned to the Company by rating agencies, investment results, availability of
reinsurance, availability of dividends from our insurance company subsidiaries,
investing substantial amounts in our information systems and technology, the
ability of our reinsurers to pay reinsurance recoverables owed to us, our entry
into new markets, our acquisition of North East Insurance Company on September
24, 1999, our acquisition of Mountain Valley Indemnity Company on March 1, 2000,
our successful integration of these acquisitions, potential future tax
liabilities related to an insolvent subsidiary and state regulatory and
legislative actions which can affect the profitability of certain lines of
business and impede our ability to charge adequate rates, and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission.

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