Bodily Injury Costs Increase in California, says Mercury Insurance

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Multi-vehicle crashes, dog bites or a delivery person being injured on your property are some of the unexpected events that are putting California’s personal financial health at risk. In fact, bodily injury payouts continue to climb year over year since the pandemic started, with the average amount for a liability claim increasing by 66%, according to Mercury Insurance.

The recent trend of rising liability injury claims for home and auto owners that exceed traditional policy-limits has moved Mercury to unveil an all-new personal umbrella insurance policy for Californians that offers extra protection with bolstered coverage beginning at less than $1 a day.

“Unexpected accidents are becoming more costly for Californians, which puts them at risk of having to pay out of pocket,” said Jeff Schroeder, vice president and chief product officer at Mercury Insurance.

“During the last two years we’ve seen the number of million-dollar umbrella payouts increase by 50%. So, Mercury has redesigned its umbrella insurance to give Californians an extra layer of protection beyond a traditional auto or home policy. It’s an affordable safety net that protects you from these expensive accidents and litigious lawyers looking for a big payday.”

A cautionary tale for all is that of a Mercury policyholder who kept the same limits and coverage since college, even though his personal wealth had increased significantly. The policyholder, who later became a doctor, never thought about umbrella coverage until he hit a moped with his automobile – severely injuring the rider. The rider hired a lawyer and the insured ended up having to pay out of pocket for damages that were well beyond his auto policy limit of $25,000.

“He had payments deducted from his salary for a number of years until the settlement was all paid off,” Schroeder said.

“Mercury’s policy is the ‘Goldilocks’ of coverage because it offers a very specific amount of extra protection that fits a customer’s needs, which is really important for anyone who wants to safeguard their future against unexpected expenses and legal liabilities,” Schroeder said.