Bodily injury costs

Mercury’s redesigned umbrella insurance provides added protection to Californians amid escalating bodily injury claims.

The cost of bodily injury claims in California is on the rise, and it’s putting personal financial security at risk for many residents. Multi-vehicle accidents, dog bites, or even incidents like a delivery person getting injured on your property can lead to expensive claims. In fact, according to Mercury Insurance (NYSE: MCY), the average amount for a liability claim has increased by a staggering 66% year over year since the start of the pandemic.

This concerning trend of mounting liability injury claims exceeding traditional policy limits has led Mercury to introduce an all-new personal umbrella insurance policy for Californians. This enhanced policy offers additional protection with bolstered coverage, all starting at less than a dollar a day.

The Rising Costs of Unexpected Accidents

“Unexpected accidents are becoming more costly for Californians, which puts them at risk of having to pay out of pocket,” says Jeff Schroeder, Vice President and Chief Product Officer at Mercury Insurance. “During the last two years, we’ve seen the number of million-dollar umbrella payouts increase by 50%. So, Mercury has redesigned its umbrella insurance to give Californians an extra layer of protection beyond a traditional auto or home policy. It’s an affordable safety net that protects you from these expensive accidents and litigious lawyers looking for a big payday.”

This growing risk of expensive accidents has prompted many insurance providers, including Mercury, to reassess their offerings. For Californians who have experienced significant increases in their personal wealth, maintaining the same insurance coverage limits since college may no longer be sufficient. Schroeder shared a cautionary tale of a Mercury policyholder who didn’t update their coverage as their financial situation improved.

This policyholder, who later became a doctor, found themselves in a challenging situation when they severely injured a moped rider with their car. The rider hired a lawyer, and the Mercury insured had to pay out of pocket for damages that far exceeded their auto policy limit of $25,000. The financial burden was substantial, with payments deducted from their salary for several years until the settlement was fully paid off.

Enhanced Features of Mercury’s Umbrella Insurance

Mercury’s revamped umbrella insurance comes with several key features to provide comprehensive coverage:

Multi-policy Discounts: Policyholders can benefit from significant savings through multi-policy discounts across their auto, homeowners, and umbrella policies.

3-year Accident and Violation Free Discount: Drivers with a clean record for the past three years receive a 5% discount on their Mercury policy.

Uninsured Motorist Coverage: In the event of an accident caused by an uninsured driver, Mercury’s policy offers coverage of up to $1 million.

Increased Liability: Policyholders have the flexibility to increase their liability coverage from $1 million to $5 million, depending on their specific coverage needs.

Schroeder emphasizes that Mercury’s policy is akin to the “Goldilocks” of coverages, offering a specific amount of extra protection tailored to each customer’s unique requirements. This level of customization is vital for anyone seeking to safeguard their future against unexpected expenses and legal liabilities.

Mercury offers a wide range of insurance products in California, including Personal Auto, Mechanical Protection, Ride-Hailing, Condo, Homeowners, Home Cyber Protection, Home Systems Protection, Identity Management Services, Landlord, Renters, Service Line Protection, Business Auto, and Personal Umbrella insurance.

Bodily injury costs