Mercury Insurance Tackles More Auto Insurance Myths

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) released Volume Two of its auto insurance myth‑busting series on Jan 20, 2026, aiming to correct common misconceptions that affect coverage and cost.

The release lists eight myths and facts covering rate negotiation, medical payments vs health insurance, limits of "full coverage," insurer differences, not‑at‑fault claims, new car premiums, rental reimbursement, and gap coverage for totaled vehicles.

Mercury urges drivers to review policies, ask agents questions, and shop discounts or coverage options to align protection with driving needs.

News Market Reaction

-1.94%

1 alert

-1.94% News Effect

On the day this news was published, MCY declined 1.94%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Reality Check

Price: $85.49 Vol: Volume 273,005 is 33% abo...

normal vol

$85.49 Last Close

Volume Volume 273,005 is 33% above the 20-day average of 205,456 shares. normal

Technical Price $91.09 is trading above the 200-day MA at $74.49 and 5.61% below the 52-week high.

Peers on Argus

MCY slipped 0.33% while key peers SIGI (-0.82%), WTM (-0.26%), HGTY (-0.71%), KM...

MCY slipped 0.33% while key peers SIGI (-0.82%), WTM (-0.26%), HGTY (-0.71%), KMPR (-0.39%), and LMND (-1.48%) also traded lower, indicating a modest sector-wide downdraft.

Historical Context

5 past events · Latest: Jan 14 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 14	Dual listing news	Positive	+1.1%	Announced dual listing on NYSE Texas while retaining NYSE primary listing.
Jan 13	Risk outlook update	Neutral	-1.5%	Shared winter weather risk outlook and preparedness guidance for policyholders.
Jan 12	Earnings date notice	Neutral	+0.8%	Announced Q4 2025 earnings release date and Form 10-K filing plan.
Jan 08	Loss prevention tips	Neutral	+1.7%	Provided guidance on preventing costly home water damage through maintenance.
Jan 06	Security guidance	Neutral	-2.5%	Encouraged simple home security habits to reduce theft-related losses.

Pattern Detected

Recent non-financial news has produced small, mixed price moves, with only the dual-listing announcement showing a clear positive alignment between news tone and price reaction.

Recent Company History

Over the past few weeks, MCY news has centered on operational positioning and consumer education. A Jan 14, 2026 dual listing on NYSE Texas coincided with a 1.1% gain, suggesting a constructive reception. Other updates on winter weather risks, home water damage prevention, and home security produced modest, mixed reactions between -2.52% and +1.68%. Today’s auto insurance myth-busting article fits this pattern of educational outreach rather than balance-sheet-changing events.

Market Pulse Summary

This announcement extends Mercury’s consumer education efforts with a second volume of auto insuranc...

Analysis

This announcement extends Mercury’s consumer education efforts with a second volume of auto insurance myth-busting, emphasizing coverage limits, optional protections, and how claims may affect premiums. It follows recent guidance-oriented releases on weather risks and home maintenance. While not a balance-sheet event, it underscores a focus on risk prevention and customer understanding. Investors may watch how these outreach efforts complement upcoming catalysts such as the scheduled Q4 2025 earnings release and ongoing regulatory disclosures.

Key Terms

personal injury protection (PIP), liability, comprehensive, collision coverage, +3 more

7 terms

personal injury protection (PIP) medical

"your auto policy's medical payments or personal injury protection (PIP) can still be"

Personal injury protection (PIP) is an auto insurance benefit that pays for medical bills, rehabilitation and sometimes lost wages for people hurt in a vehicle accident, regardless of who caused the crash. Think of it as a first-aid fund that covers immediate care and short-term expenses after an accident. For investors, PIP rules and claim levels influence insurers’ payouts, premium pricing and legal exposure, which can affect profitability in the auto insurance and related sectors.

liability financial

"describe a policy that includes liability, comprehensive, and collision coverage."

Liability is a company's legal or financial obligation—money it owes now or later, including loans, unpaid bills, lease payments, taxes, or legal settlements. Investors pay attention to liabilities because they reduce the cash available for growth, dividends, or debt repayment; like a household debt that cuts into savings, large or rising liabilities can increase a company's risk and affect its ability to weather setbacks.

comprehensive financial

"describe a policy that includes liability, comprehensive, and collision coverage."

Comprehensive describes a report, review, study or disclosure that covers all material aspects of a subject so that few important questions remain unanswered—like a neighborhood map that shows every street, park and landmark. For investors, the word signals that information is intended to be thorough and useful for judging risks, opportunities and valuation; it makes decisions easier but does not by itself guarantee accuracy or completeness.

collision coverage financial

"describe a policy that includes liability, comprehensive, and collision coverage."

Collision coverage is an auto insurance option that pays to repair or replace a vehicle after it is damaged in an accident, regardless of who caused the crash. For investors, it matters because the volume and cost of these claims affect insurers’ profits, reserve needs and pricing; shifts in accident rates, vehicle values or repair costs can change an insurer’s financial outlook much like unexpected repair bills can alter a household budget.

gap insurance financial

"Gap insurance is a separate optional coverage that can help cover the difference."

Gap insurance is a policy that covers the difference between what a borrower still owes on a loan or lease and the insurance payout if the vehicle is stolen or totaled, when that payout is less than the remaining balance. For investors, it matters because it reduces credit losses and residual-value risk for lenders and lease companies—think of it as a safety net that prevents a shortfall when an asset’s market value drops faster than the loan balance.

actual cash value financial

"based on the vehicle's actual cash value at the time of loss, not what you"

Actual cash value is the payout an insurer or claimant would receive for damaged, lost, or depreciated property based on its current market worth, usually calculated as replacement cost minus wear-and-tear. Think of it like the price you’d get selling a used car today rather than buying a new one; for investors, it matters because it affects insurance liabilities, reserve estimates, claim costs and the realistic recovery value of assets on a company’s balance sheet.

rental car reimbursement financial

"Rental car reimbursement is an optional add-on."

Payment made to cover the cost of a rented vehicle when someone’s own car is unavailable or when travel is required for business, similar to being reimbursed for a taxi when your car is in the shop or you must travel for work. For investors, this matters because recurring or large reimbursements can raise a company’s operating costs, affect insurance claims and reserves, and signal how consumer or business expenses are managed and disclosed.

AI-generated analysis. Not financial advice.

'Volume Two' of misconceptions drivers should know before making coverage decisions

LOS ANGELES, Jan. 20, 2026 /PRNewswire/ -- Misinformation about auto insurance continues to circulate, leading many drivers to make decisions based on outdated or inaccurate assumptions. To help consumers stay informed, Mercury Insurance (NYSE: MCY) is releasing Volume Two of its auto insurance myth–busting series—focused entirely on new misconceptions that can affect coverage, cost and peace of mind.

"Even savvy drivers can be misled by insurance myths," said Justin Yoshizawa, Director of Product Management at Mercury Insurance. "Understanding what coverage actually does—and doesn't—do can help people avoid unpleasant surprises after an accident."

Here's the latest lineup of auto insurance myths — and the facts that stand in their place:

Myth #1 — You Can Negotiate Your Auto Insurance Premium
Fact: Insurance rates aren't like haggling for a car price. They're calculated using approved rating formulas and risk models regulated by state insurance departments — so you can't negotiate a lower rate directly with your carrier. What you can do is shop for discounts, adjust coverage levels, or improve your risk profile to influence your premium.

Myth #2 — You Don't Need Medical Payments Coverage if You Have Health Insurance
Fact: Even if you carry health insurance, your auto policy's medical payments or personal injury protection (PIP) can still be valuable. These coverages may pay medical costs regardless of fault and can help cover expenses not covered by health insurance — including deductibles, co-pays, ambulance bills, lost wages, and more, depending on state regulations.

Myth #3 — Full Coverage Means You're Covered for EverythingFact:
"Full coverage" is a common shorthand used to describe a policy that includes liability, comprehensive, and collision coverage. Even with all three, coverage is still subject to limits, deductibles and exclusions, which means certain situations and expenses may not be covered unless additional protections are added.

Myth #4 — All Insurance Companies Are Basically the Same
Fact: Each insurer has different underwriting guidelines, risk models, discount structures, service levels and claims handling practices. Shopping only on price — without comparing coverages and service reputation — can lead to surprises when you actually need to file a claim.

Myth #5 — A Not-At-Fault Accident Won't Affect Your Rates
Fact: Even if you weren't at fault, filing a claim can still influence your insurance score and possibly affect future pricing — depending on your state and your carrier's specific rating rules. It's always worth discussing the scenario with your agent before deciding whether to file.

Myth #6 — New Cars Are Always More Expensive to Insure
Fact: A new car often costs more to insure than an older one, but this isn't automatic. A new vehicle with high-end safety features or strong crash-worthiness and theft-deterrent systems may actually be less expensive to insure than a different used model with poor safety ratings or costly repair costs. Vehicle safety and repair costs — not just age — influence premiums.

Myth #7 — Insurance Automatically Pays for a Rental After an Accident
Fact: Rental car reimbursement is an optional add-on. Unless you specifically select rental reimbursement coverage, your auto policy won't pay for a temporary vehicle while yours is being repaired.

Myth #8 — If Your Car Is Totaled, Your Insurance Pays Off Your Loan or Lease
Fact: Car insurance settlement is based on the vehicle's actual cash value at the time of loss, not what you originally paid — meaning depreciation can leave you owing money on your loan or lease even after a total loss. Gap insurance is a separate optional coverage that can help cover the difference.

"Dispelling myths is about more than just good information — it's about building insurance confidence," added Yoshizawa. "We want drivers to make choices based on reality, not rumor."

Mercury encourages drivers to review their policies regularly, ask questions, and work with knowledgeable agents to ensure coverage aligns with how and where they drive.

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance 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 writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/mercury-insurance-tackles-more-auto-insurance-myths-302664686.html

SOURCE Mercury Insurance Services, LLC

FAQ

What did Mercury Insurance (MCY) announce on January 20, 2026 about auto insurance myths?

Mercury released Volume Two of a myth‑busting series listing eight common auto insurance myths and the factual explanations to help consumers make better coverage choices.

How does Mercury explain rate negotiation for MCY auto insurance premiums?

Mercury says premiums are set by approved rating formulas and state regulation, so you can't directly haggle rates but can shop discounts, change coverage, or improve risk factors.

Does Mercury (MCY) recommend relying on health insurance instead of medical payments or PIP?

No; Mercury notes medical payments or PIP can cover costs health insurance may not, such as deductibles, co‑pays, ambulance bills, or lost wages depending on state rules.

Will a not‑at‑fault accident always leave MCY policyholders' rates unchanged?

Mercury warns that even not‑at‑fault claims can affect insurance scores and future pricing depending on state rules and carrier practices, so consult your agent before filing.

Does Mercury say new cars always cost more to insure under MCY policies?

No; Mercury explains that new cars can cost more, but safety features and repair costs can make some new vehicles cheaper to insure than certain used models.

What coverage does Mercury (MCY) say is needed to get a rental car after an accident?

Mercury states rental car reimbursement is an optional add‑on; your policy pays for a rental only if you selected rental reimbursement coverage.