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history when setting rates and premiums. It would allow insurers to surcharge customers who had not purchased auto insurance at some point during the past five years, whether or not they had been driving. Consumer Watchdog estimates that those surcharges would increase premiums by as much as 40% or more for millions of Californians including students who went away for college, Californians who previously used mass-transit, and the long-term unemployed. To help stop the spread of misinformation and to combat the misleading campaign by Mercury Insurance and their front group the Agents Alliance we have complied a fact sheet:
Ma ss tr a ns it c ommut er s a nd B ic ycl e c ommut er s a nd urbanit es t ha t d ec id e d t o buy car insuranc e w ill b e p ena li z ed w it h a surchar ge .
Californians and new transplants that previously used mass-transit biked or walked, as their primary means of transportation would be hit with a surcharge. At a time when green-orientated policies are being prompted to help California drivers reduce traffic and smog Mercury Insurance would be penalizing this positive actions. In addition, when newly uninsured drivers face barriers to re-entering the insurance market, all insured drivers in California end up paying more for insurance in the form of higher premiums for uninsured motorist coverage and higher taxes to cover uninsured accidents The Insurance Research Council, an industry group, projects that the number of uninsured motorists will increase by nearly 17% by 2010 as a result of the economic downturn. In addition to making it substantially more expensive for the uninsured to get coverage, the Mercury initiative will lead to higher premiums for those who remain insured. When there are more uninsured, the price of uninsured motorist coverage goes up for everyone else.
why the Mercury initiative does not disclose that its initiative guts a key California protection against the practice of using prior insurance status in the setting of rates and premiums.
and wrongdoing Among Department [of Insurance] staff, consumer attorneys, and consumer victims of its bad faith, Mercury has a deserved reputation for abusing its customers and intentionally violating the law with arrogance and indifference. ###