Mercury Insurance cuts an estimated total of 72 million dollar in rates for drivers. This happened after the company was challenged by the Consumer Watchdog, a non-profit group closely working with the Department of Insurance.
Consumer Watchdog’s challenge to Mercury Insurance came at a time when Mercury Insurance planned to increase their car insurance premiums. Mercury Insurance proposed a car insurance premium hike amounting to a total of $32 million. The insurance provider sought approval from the Department of Insurance in California. California’s Department of Insurance, upon the Consumer Watchdog’s request for investigation, took action after Mercury Insurance’s submission of the premium hike proposal.
The Department of Insurance released the results of the investigation after a few days. The Department rejected Mercury Insurance’s plan to raise car insurance premiums. As a result, California’s Department of Insurance enforced a price cut on Mercury insurance premiums this year. The Department stated that the Consumer Watchdog’s concerns are very much valid. The group said that the proposed insurance premium hike of Mercury Insurance is a violation of California’s Proposition 103, also known as the state’s landmark insurance reform which required insurance companies to provide proof of the importance of such a price increase. In cases when the insurance provider fails to provide the necessary requirements, then the planned premium increase should be rejected.
Jim Bronte, 32, has car insurance from Mercury. He opines that Consumer Watchdog had once again proven to be a successful organization. He added that at this point, he not only can expect fair rates or insurance premiums more reasonably from Mercury Insurance, he also believed that he will also be able to maximize his savings.
According to the Consumer Watchdog, the Department of Insurance Commissioner rejected Mercury Insurance’s proposal to increase insurance premiums in compliance with existing rules and regulations or the insurance reforms in the state. Consumer Watchdog said that the Department of Insurance must instead order Mercury to decrease their insurance rates as results of the investigation. This has been done by the Department of Insurance so far, according to the Consumer Watchdog, and has allowed consumers to get a fair deal.
The nonprofit organization added that the decrease in rates ordered by the Department of Insurance does not preclude any other corrective action. Consumer watchdog concluded that the Department of Insurance must continue to pursue other actions seen as necessary for the stakeholders to benefit. After all, insurance coverage is a necessity in all states and by ensuring fair pricing the government can help their citizens save a little.