As Californians prepare to vote on a new law which will allow insurance companies to offer discounted rates for new clients who can prove that they had continuous coverage with any licensed insurer for a period of five years or more, Mercury General is raising its rates an average of 4% per policyholder.
Opponents of California’s Proposition 33, which is supported by Mercury chairman George Joseph and other insurance company heads, predict that the insurer’s new rates will raise costs to its policyholders by an estimated $63 million, thus contradicting the ballot’s measured promise that passage will lower costs for safe and insured drivers.
According to Mercury’s critics, which include Consumer Watchdog and the Consumer Federation of California, the insurer is seeking to make larger...
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