Mercury Insurance Submits California's First Sustainable Insurance Strategy Homeowners Rate Filing

"Commissioner Lara's Sustainable Insurance Strategy (SIS) will help stabilize the California homeowner's insurance market," said Gabriel Tirador, Mercury's CEO. "Our filing is the first step toward Mercury's goal of expanding insurance options for California homeowners and underscores our 60-year commitment to California customers and agents. As other companies scaled back their California operations, Mercury stepped up to provide more options for our agents and customers, and we are committed to continuing our efforts to help protect our California neighbors well into the future."

The rate filing calls for an overall average rate increase of 6.9 percent, reflecting increased inflationary cost pressures and exposure related to catastrophic events such as wildfires. The rate increase won't be allocated evenly across all policyholders, however, as residents in higher risk areas could see larger increases, while customers in lower risk areas could see decreases. To combat increases for customers in higher risk areas, Mercury is implementing a number of discounts that could mitigate the increase while making homes and communities safer.

• Mercury will expand existing discounts for homeowners who take steps to reduce wildfire risks. The discounts will be based on efforts such as clearing vegetation, upgrading vents and/or using fire-resistant construction materials.
• On a broader level, living in a fire-prepared community that takes "collective steps" to mitigate wildfire exposure by managing surrounding brush, mandating specific home hardening requirements – along with a range of other infrastructural requirements – provides an additional discount.

Beyond these discounts – which could save up to a third on the wildfire portion of their premium – FAIR Plan policyholders will be provided with more options for coverage and will not have to consider additional insurance (such as a Difference in Condition policies that cover events other than wildfires, including water damage, personal liability, and theft) to fill the gaps of their FAIR Plan policy.

About Mercury Insurance

Headquartered in Los Angeles, Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

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SOURCE Mercury Insurance