socal_driver

I live in Los Angeles county. The due date of my next 6-month payment was coming up and so I called my agent to ask her a harmless question about the due date. Out of nowhere, just before we were about to hang up, she asks me if I have a roommate. I was caught off-guard and I quickly thought to myself that maybe it could reduce my premium (why I thought that I do not know), so I told her I do have a roommate. She asked me his name and what cars he drives and (again like an idiot) I told her, thinking it was all harmless. She said it was no big deal and she would simply send me a Roommate Exclusion (so I can't make claims if my roommate were to drive my car and get into an accident) paper to sign. I told her my roommate drives his cars and I drive mine and we never share, and she said it doesn't matter, Mercury just wants to protect itself. So I send in my 6-month payment in the meantime and, when it arrived a couple days later, I sign the Roommate Exclusion and send it in. A few days later (which is TODAY), I get a revised premium requiring me to pay an additional almost $200 immediately for the current 6-month period.

(1) In my prior SEVERAL residences, no one from Mercury ever asked me if I had a roommate. Why now? Is this a valid and legal action?

(2) My rooommate will never drive my cars and I will never drive his. Doesn't this fact make any difference?

(3) Will Mercury or my agent be able to verify my roommate's name and cars and residence? (Remember, like an idiot, I gave my agent my rooommate's name and year and make of his cars.) If they don't have access to such information, I can simply tell them my roommate moved out, right?

(4) Even if what my agent did is legal, it is HUMANISTICALLY BOGUS. What is the most practical action for me to get out of this BOGUS increase to my premium? Should I simply tell my agent that my roommate just moved out (as mentioned above in #3) or should I tell my agent that I am moving out this weekend (and then give them the address of a relative's or friend's home)?

(5) Regardless of what happens, it is my intent to switch insurance offices. Is it effective to switch to a different broker (at a different office) and still be insured by Mercury? On the other hand, I wouldn't mind axing Mercury but I'm not sure there's a cheaper insurance company out there.

***BTW, I have had no moving violations and no insurance claims for over 12 years (and the 2.5 years I've been with Mercury and my current agent).***

I would greatly appreciate any expert advice.

Detrich

i'm currently insured w/ mercury too, but i haven't heard of anything like this.

what i do know is that to keep costs low, they sell insurance through a network of independent brokers... so, yes, u can buy mercury insurance from any insurance broker that's affiliated with mercury. the brokers only process the policies according to mercury price guides. so, the pricing shouldn't be any different- regardless which broker u go thru.

second, they do tend to nickel & dime a lot during policy renewals. my bill arbitrarily goes up about $40 to $50 every renewal period. but, even so mercury still has the best rate when i compared quotes w/ aaa & geico.

as far as service goes, i've never had to file a claim with them yet. but, from what i've heard from friends & co-workers, they're supposed to be pretty good. i have my home owners and a 2 car policy with them for just one driver (me), and i pay about $800 per year per car for full, higher liability coverage.

hope this info helps slightly...

liam

A "Broker" is just that, a broker. Although he represents the company, he does not underwrite any business for Mercury Insurance, because he is not an employee of the company.

FYI, a broker's intention might have been to get your business so he can make extra commission while turning blind eyes to underwriting criteria (Mercury's) which might prevent you from buying insurance from him. On the other hand, you bought insurance from him because he offered you what seemed to be a good price. The company, i.e. underwriter, underwrote your business based on the information the broker provided.

Your fault or misunderstanding is with the broker, not with the company. The company underwriting rules are black and white. Sometimes, the broker/agent "bends" the rules for his personal gain.

You spoke with the actual representative of the company. You gave him/her more information than you should. Now, the company is underwriting you correctly.

1) if you merely switch broker but stay with the same company, it's not going to change your dilemna.

2) insurance companies use something called "household." If you have a roommate with drivers license, then he is called a household member. Therefore, he/she has to be underwritten with you, or sign off on exclusion.

3) a possible solution for you. If your roommate has a clean driving record, then it might be financially beneficial if you add your roommate and his car unto your policy. It should lower your premium to the original premium. In addition, his auto policy would offer you something called a multi-car discount, which should lower it further. YOur roommate should be eligible for this discount as well.

socal_driver

Thanks for the help. It turns out the Roommate Exclusion did NOT increase my premium, although I hear it can increase premium for some insurance companies.

At the time I called my agent/broker, I also reported a change of residence from SB county to LA county. And that is what raised my premium $160 every 6 months ($320 over a year).

But I ended up talking to another Mercury broker and managed to save $650 dollars a year!!! Yes, simply by changing brokers even though I'm still with Mercury. How? Because some agents will COMMUNICATE to you new discounts or changes in current discounts as well updating mileage and driving style. I think the information I found is so important that I'm going to start a new thread on the topic. Please read it for the details and I hope it helps people.