Thursday, 12 June 2008
California Insurer Will Reduce Auto And Homeowners Insurance Rates
This morning, California Insurance Commissioner Steve Poizner and the chairman of auto and home insurer Mercury will announce rate reductions for more than 1.5 million Mercury policyholders.
Mercury is a Los Angeles-based insurance company who provides auto and homeowners insurance coverage.
They are the third-largest auto insurer in California, reported the Los Angeles Times.
Drivers with a Mercury auto insurance policy will see a savings of about $30 a year, which totals to roughly $41 million for the entire state.
Now with the average price of gas at more than $4 a gallon in the U.S., the rate hikes may help ease the burden of the cost, wrote the Times article.
Homeowners will save anywhere form $83 to $100 a year on their premiums depending on where they live. Renters’ insurance premiums will also go down by 33 percent.
Like many other insurers in California, Mercury has shown strong profits and a reduction in claims, which allows them to reduce rates.
“Mercury is exemplifying consumer-friendly and smart business practices by passing company savings on to their policyholders,” said Poizner.
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