by Naomi Seligman
Across the country, people are hurting from the recession. And auto insurance companies are making it even more difficult for those that are hardest hit.
In states such as Tennessee, auto insurance giants, including Allstate and GEICO, are increasing rates an average of 6.5% next year. That can really hurt a family’s bottom line and discourage drivers from buying insurance:
Dan Tarantin, chief executive of Direct General insurance, said that the company sees more consumers buying liability-only policies to save money and still abide by state law to carry a minimum amount of car insurance. With unemployment still in double digits statewide, Tarantin also believes that more people are driving without insurance to save money.
Across the country, insurance rates have increased by 4% in the past six months. But, as we know, insurance companies are not satisfied with single-digit increases. That is why Mercury Insurance is sponsoring – $4.5 million so far - a deceptive measure on the (June or November) ballot that would raise insurance premiums on California drivers.
The measure would allow Mercury and every other insurer to penalize Californians who want car insurance but have had a lapse in coverage anytime in the past five years. The penalty, which could increase rates 40-74%, would be imposed whether or not the person was driving when they didn’t have insurance.
Some of the types of folks to face Mercury’s car insurance surcharge are:
- A senior citizen who stops driving for several months after surgery would be penalized when she tries to restart insurance coverage.
- A soldier serving on base in the United States would be penalized when he returns to civilian life in California and needs auto insurance again.
- A family whose coverage was canceled after missing just one auto insurance payment would be penalized even if they tried to restart coverage immediately after they were canceled.
- Anyone who gives up driving for public transportation or to bike to work would be penalized when they need a car and insurance again.
Take a look a what this measure is really all about.
Tags: Blog
Not true. Mercury is consistently among the lowest rates of insurance carriers year after year. And year after year you keep bashing this company that continues to work for the public, not against it. And btw, 3% industry wide profits for insurance industry is really low.
How about going after the soda market…18% profit by Pepsi and Coca Cola…but I do not hear you crying about that.
Prop 17 will actually give most drivers a real choice…they can take the discount with them to another carrier. Just like the cell phone law that allowed you to take your cell phone number so you were not locked into one company. This Prop will do the same thing for auto insurance.
Stop trying to disallow the auto insurance consumer their rightful renewal discount and locking us into one carrier!!!
Vote yes on Prop 17 and THANK YOU GEORGE JOSEPH AND MERCURY INSURANCE FOR PUTTING YOUR NECK OUT THERE FOR ALL OF US CONSUMERS TIRED OF BEING STUCK WITH OUR CARRIERS HIGHER BASE RATES! KUDOS TO MERCURY FOR ALWAYS HAVING LOW PRICES AND NOT BEING GREEDY.
And thank you for using real insurance professionals to sell and service your clients. Insurance Agents not call centers are real people that care and that is why my agent recommends Mercury all the time but I cant move because I cant take my renewal discount credit.
I read your site often and I just thought I’d say keep up the terrific work!