May 17, 2014


You open your Mercury Insurance bill, and you are bewildered! Your monthly payment went up, but you haven’t had any tickets or accidents or made any other changes to your policy. What’s the deal?

We have had quite a few clients call us that were wondering exactly the same thing. What is the deal?? We hope we can explain it as to help avoid any more confusion.

When you get a new policy with Mercury Ins/Cal Auto, they require a down payment of 1.5 months for Mercury and 2 months for Cal Auto. The remaining premium is then divided into 5 equal payments per month for the rest of the policy term. At renewal, the total premium is simply divided into 6 equal payments to be paid monthly.

So, let’s say your 6 month premium is $600. For a new Cal Auto policy, you would have a down payment of $200 (2 months), and then 5 monthly payments of $80. At renewal, (provided the premium stayed the same), your down payment would only be $100, and then each monthly payment would also be $100. It does go up $20 per month, but the initial down payment is lower.

The same concept would apply for Mercury Insurance. If your 6 month premium is $600, the new policy down payment would be $150 (1.5 months), and then $90 per month thereafter. At renewal, if the premium stayed the same, it would be $100 down and then $100 each month. The monthly premium does go up $10 per month, but the initial down payment is lower.

If you look at the “Total Policy Premium” on your current policy vs. your previous one, you can calculate exactly how much your premium went up or down.

Please feel free to contact your agent if you still don’t quite understand, and they will be happy to explain it further!

Have a wonderful day!

No comments

Leave a Reply

Your email address will not be published. Required fields are marked *

  • Get an Instant Quote

    Call us directly at (800) 917-3577.

    Instant Auto Quote Instant Life Quote Instant Home Quote Instant Health Quote Instant Pet Quote

    We also offer the following coverages: Business Liability, Condo Insurance, Flood Insurance, Group Benefits, Off Road Vehicle Insurance, Pet Insurance, Recreational Vehicle Insurance, Renters Insurance, Risk Management, Specialty Business, Umbrella Insurance, Watercraft Insurance, Workers Compensation and more.
    Quote for Other Coverage