California Insurance Commissioner Ricardo Lara yesterday announced a legal action against Mercury Insurance for violating consumer protection laws, including by selling Mercury’s highest-priced policy to “good drivers” instead of the lowest-priced policy for which good drivers qualify. This legal enforcement action comes after a Department investigation found numerous areas where Mercury’s business practices harmed policyholders across its private passenger auto, homeowners, commercial auto, and commercial multi-policy lines of insurance.
As CollisionWeek reported in July, Mercury is the sixth largest private passenger auto insurer in California.
By passing Proposition 103 in 1988, California voters mandated a 20 percent “good driver discount”