Mercury General to cut auto insurance rates by 10% for many customers
Rates at California’s fifth-largest auto insurer, Mercury General Corp., are set to go down by at least 10% starting next week for many policyholders.
The Los Angeles company said Thursday that state regulators had approved a requested $144-million annual rate reduction for customers who buy a new policy or renew an old one on or after Dec. 15.
Customers, who currently insure about 2 million vehicles with Mercury, will save an average of $72 annually for each car or light truck, the company said.
The Mercury rate cut is the latest in a series of price reductions by insurers in the highly competitive California market.
Last week the state’s two biggest auto insurers, State Farm Insurance Cos. and the Auto Club of Southern California, unveiled new pay-as-you-drive policies that would allow some motorists to cut premiums significantly if they reduced the number of miles driven each year.
More companies are expected to offer the pay-as-you-drive policies in coming months, said officials at the California Department of Insurance.
Many companies have been cutting premiums in recent years because accident frequency and severity are down, cars have become safer and aging baby boomers are more conservative behind the wheel, industry experts said.
In addition to setting lower rates, Mercury has added new features to its insurance products. One of those, said Robert Houlihan, the chief product officer, is 24-hour roadside assistance for customers who purchase comprehensive and collision coverage that protects them from such losses as fire, theft or accidental body and mechanical damage.
“This represents a tremendous value for our customers because now they don’t have to join a club to get the help they need if they run out of gas, need a tow or simply lock their keys in their car,” Houlihan said.
Mercury also is offering a discount to any college graduate who offers proof that he or she belongs to an alumni association.
