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You are here: Home / News / California Alleges Mercury Insurance Illegally Steered Good Drivers to Higher Priced Auto Insurance

California Alleges Mercury Insurance Illegally Steered Good Drivers to Higher Priced Auto Insurance

August 2, 2022 By CollisionWeek Editor

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.

California Department of InsuranceAs 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”

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Filed Under: News Tagged With: California, Department of Insurance, Lawsuits, Mercury Insurance

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