Mercury Sending Mileage Verification Letter

by | Nov 4, 2021 | Auto & Home

Throughout the pandemic, mileage has been lowered for customers working from home or temporarily not commuting to their job. As we have seen by the increased traffic on our streets and highways, many people have resumed their commutes and annual miles driven is at or close to pre-pandemic levels. Additionally, we have seen non-commuting miles increase significantly, exceeding pre-pandemic levels.

A vehicle’s annual mileage is one of the primary factors used to determine policy premium. To provide stable, competitive pricing over the long-term, it is essential that policies are rated correctly.

Effective immediately, Mercury will begin sending letters to insureds (65 days prior to renewal) that lowered one or more vehicle’s annual mileage by at least 3,000 miles since March 1, 2020. The letter advises the customer that their mileage will be moved back to where it was prior to the reduction. In cases where the proposed mileage change is not warranted, the insured can provide their estimated annual mileage and the current vehicle odometer reading. Customers will also be asked to provide updated occupation, employer name and address details and confirm vehicle usage. Policyholders who are retired will not receive the letter and only vehicles where the mileage was lowered by at least 3,000 miles will be listed and subject to the process.

In addition, MercuryFirst will be updated to allow mid-term annual mileage changes for annual mileage levels above 8,000. Policy changes to adjust annual mileage mid-term to 8,000 miles or below will be blocked and require underwriting approval.

Mercury’s RealDrive verified mileage program is an excellent option for customers currently on the estimated mileage program. The program provides an additional 5% discount to customers, using the actual annual mileage driven to rate the policy. We encourage you to offer this program to your customers that provides more accurate annual mileage for calculating rates.

Your attention to detail and diligent work to obtain accurate information will help ensure that Mercury properly charges each risk appropriately and can continue to provide competitive rates.

If you have any questions, please contact your UA agent.

Featured Image via Shutterstock

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