08/02/2022
Mercury Insurance illegally steered ‘good drivers’ toward higher-priced policies, Department alleges in major legal action
News: 2022 Press Release
For Release: August 1, 2022
LOS ANGELES — Insurance Commissioner Ricardo Lara announced a major 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.
“Failing to sell good drivers the lowest priced policy for which they qualify is illegal, and my Department will act on behalf of consumers and pursue the maximum penalties against Mercury for acting in bad faith,” said Insurance Commissioner Ricardo Lara. “My message to Mercury and other insurance companies that try to evade the law is clear: unfair and illegal practices will not be tolerated and I will fight to ensure consumers get the discounts they are entitled to under the law.”