Auto insurance rates to be cut down for some customers by 10%

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23There is some good news for many policyholders, who would witness a drop in insurance rates by at least 10%. This insurance rate cut is planned to happen at Mercury, which is the 5th largest insurance company in California. According to an announcement from the company, based in Los Angeles, made on Thursday, a request for reduction in insurance rates has been approved by the regulators in the state. This rate reduction would be customers who buy or renew their old policies after December 15th.

This policy change is likely to change an average of 72 dollar every year per car or light truck for the customers. Mercury currently has insured about 2 million vehicles for the customers. Even as the market in California is getting highly competitive, a lot of changes are being made in the policy rates by many insurance companies. This rate cut comes as a part of the same process. The biggest auto insurers in the state, Auto Club of Southern California and State Farm Mutual had unveiled a new policy last week which would allow motorists to cut on the insurance premiums they pay significantly, if the overall miles driven by them every year go down. This pay as you drive policy might be implemented in the near future by various other companies too.

As the severity of accidents and the frequency are coming down over the years, a lot of companies are cutting down their premiums in recent times. While the aging population have showed that they are conservative while driving, cars too have become safer to drive around. New insurance features have been added by Mercury to its various insurance products apart from the lowering of insurance rates. Another interesting feature is the 24 hour roadside assistance offered to customers who take both collision and comprehensive coverage, which will protect them from various losses due to fire, theft, accidents and mechanical damages. The roadside assistance is a great value-add, over the coverage provided to customers. The feature also gives them the privilege of joining a club and will also ensure they get help in critical times. This additional facility will help them seek help when they run out of gas or are facing other situations where their keys have been locked inside the car. Towing is also provided to move the car in case of damage. There is also a discount offered to college graduates that are part of alumni associations.