For some policy holders there could be a reduction in auto insurance rates as early as this Thursday according to an announcement from the company. The automobile coverage rates offered by the auto industry insurance giant could be cut by 10% from next week. This announcement comes on the back of approval received from regulators of the state. The company based in Los Angeles had requested for a 72 million dollar reduction for all those customers who would be buying or renewing their policies before next Wednesday. According to the company announcement, this reduction will lead to a saving of 36 dollars on every car.
This auto insurance cut is currently proposed for the California drivers. It also comes as a surprise because of the original plan of the company to hike the premiums on auto insurance. This reduction in auto insurance rates could be as a result of the disapproval of the California Department of Insurance, which refused the insurance company’s request to increase the insurance rates by 32 million dollars as the company had proposed to in 2008. This had come up against a lot of resistance with the insurance giant’s proposed hikes supposedly violating the state’s insurance reforms in the past.
The insurance giant insures 2 million vehicles in California. These rates will be going into effect into policies that will start from December 15th or later. Those policies which will be renewed on or after that date will also come under the purview of these changes. In fact, the company has even announced some good news for college graduates. Those who are members of the alumni association can expect some special discounts from the auto insurance giant.
According to company officials the rates of Mercury are already low and they have become even lower now. Moreover the company is aiming to provide greater benefits to the California customers by providing more value. As the country is on the road to recovery, these savings accrued through the proposed cuts in the insurance rates will help the customers stretch the value of their dollars even further. There are certain tweaks in the benefits offered to customers as well.
There would be 24 hour roadside assistance for those customers who have taken comprehensive and collision coverage. This along with special discounts for university alumni association members are amongst some of the value-adds in the insurance rates offered by the 5th largest insurance company in the state.
