Consumer Watchdog files petition against Mercury for discrimination, price gouging

Consumer Watchdog files petition against Mercury for discrimination, price gouging | Insurance Business America

Motor & Fleet

Consumer Watchdog files petition against Mercury for discrimination, price gouging

Company purportedly violated significant insurance reform initiative

Motor & Fleet

By
Kenneth Araullo

Consumer Watchdog filed a petition to intervene in an enforcement action initiated by the California Department of Insurance (CDI) against Mercury Insurance Group. The allegations revolve around accusations of overcharging, misleading practices, and discrimination against California homeowners and motorists.

Consumer Watchdog’s involvement in the case will focus on the company’s purported violations of Proposition 103, a significant insurance reform initiative established in 1988. The CDI has accused Mercury of 29 different violations of this law, including overcharging good drivers and other motorists, penalizing motorists for not previously carrying insurance, charging unauthorized rates, and implementing discriminatory rates.

Consumer Watchdog noted that Mercury had previously promised CDI it would cease many of these practices, which are unlawful under Proposition 103, but allegedly continued to violate the law.

“Mercury has consistently refused to obey the rules California voters put in place with Proposition 103 to stop price-gouging and practices that discriminate against those who can least afford it. Previous investigations and multimillion-dollar penalties have clearly failed to deter the company from wrongdoing. Mercury, as a repeat offender, must pay a steep price or no insurer will bother to obey the law. Consumer Watchdog looks forward to working with CDI prosecutors to bring Mercury to justice – which we believe means barring Mercury from doing business in the state,” Consumer Watchdog staff attorney Benjamin Powell said.