When voters in California head to the ballot in November, they will also face the issue of a discount initiative for auto insurance, called the 2012 Automobile Insurance Discount Act, which was over 99 percent funded by the chairman of Mercury Insurance. The initial sponsorship for the proposal was from the American Agents Alliance, a trade group. This initiative would allow motorists who change their insurers to obtain a discount if they have already had insurance on their vehicles. The proposal had received nearly 505,000 signatures (a random sample of…
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Consumer Watchdog chastises California’s Mercury Insurance for supposed illegal practices
Mercury is looking to raise its auto insurance rates by $89 million in California, a move that consumer advocates are calling “illegal.” Consumer Watchdog, a group concerned with making the California insurance industry more consumer friendly, claims that the insurer is looking to pass a new law that would allow it to raise rates for good drivers that have, simply, not driven for a period of time for any reason. Mercury Chairman George Joseph claims that the legislation the company is backing would save policyholders money, but Consumer Watchdog calls such…
Read MoreMillions of drivers may be eligible for car insurance discounts, according to Progressive Insurance
Progressive Insurance has issued a new report detailing how as many as 70 million drivers in the U.S. could be missing out on major savings. The insurer launched a new product earlier this year that collects data from drivers who opt to have a simple device installed in their vehicles. The device tracks driving habits and send the information to Progressive agents who determine whether these habits are safe. Those with safe driving habits are eligible for major discounts on their car insurance policies. Progressive’s report draws upon data collected…
Read MoreAuto Insurance in California – What you need to know
California has stringent requirements when it comes to car insurance. As of 2006, drivers must provide proof of financial ability to cover the expenses related to a motor vehicle accident. Any uninsured vehicle will be impounded immediately and in addition to the expenses related to impounding the car, the driver will receive a large fine. Drivers are also financially liable for any accident in which they are involved. Providing proof of financial ability can take one of several forms in California. Drivers can provide the state of California with a…
Read MoreCalifornia awarded federal grants to make insurance rate review process more efficient
The state of California has been struggling to rein in one rampant rate increases coming from a number of health insurance companies. High rates are spurred by rising costs in health care and the state has been having trouble coping with the sheer number of rate proposals coming in. Short falls in the rate review process can, sometimes, put consumers at unnecessary financial risk. To help the state establish a more efficient review process, the federal government has awarded California with more than $4.3 million in grants. The California Department…
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