Mercury Insurance Cuts Their Rates

Mercury insurance rates are set to go down by at least 10% starting next week for many policyholders. The Los Angeles-based company announced Thursday that state regulators approved a requested rate reduction for customers who buy a new policy or renew an old one after Dec. 15. Customers, who currently insure about 2 million vehicles with Mercury, will save an average of $72 a year for each car or light truck.

Last week, the state's two biggest auto insurers, State Farm Mutual and the Auto Club of Southern California, unveiled new "pay-as-you-drive" policies that would allow some motorists to cut premiums significantly if they reduce the number of miles driven each year. More companies are expected to offer the pay-as-you-drive policies in coming months.

Source: LA Times

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