Aig vs. Mercury: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for insurance, Aig offers slightly less expensive prices than Mercury
• Aig has more affordable premiums for drivers who have below-average credit
• Mercury may help you save more money -- they offer more discounts than AIG

Aig or Mercury: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. With so many ads from all sorts of companies offering huge savings, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to Aig or Mercury as your top options, but between the two, which one has cheaper prices for auto insurance?

Looking at the national average rates for both carriers, Mercury is around $28 more a month than Aig.

However, Aig may not be the most affordable or best option for every single driver out there. Car insurance companies use all sorts of complex algorithms to determine premiums, so depending on where you live or how good your credit score is (among a lot of other factors), you could see wildly different rates from the ones above.

So, if you want to find out which of Aig or Mercury is really the best for you, keep reading to see average premiums for each carrier broken down by several different rate factors.

Aig vs. Mercury: Average Car Insurance Rates by State

Aig and Mercury only compete against each other in Florida, where Aig offers the cheaper average rates. Undefined drivers tend to pay about undefined per month less on average compared to drivers who use undefined for their insurance.

But there's more to auto insurance than just where you call home. As we mentioned above, there's a lot of things that go into how insurance carriers calculate your prices. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for car insurance compared to older drivers. It's usually because teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

That being said, that doesn't mean that teen drivers have to just accept sky-high auto insurance premiums. As you can see above, teens who use Aig save over 45% a month compared to those who use Mercury.

Even so, both companies will offer you dramatically lower rates once you turn 25. For example, average prices for Aig policyholders decrease almost 35% and Mercury's premiums reduce nearly 70% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the lowest insurance prices you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for car insurance.

When looking at Aig and Mercury specifically, which company is best for retired drivers? In this case, Aig has the slight edge, with premiums about $0 per month less than Mercury. But the difference is only around 5%, so other factors will likely come into play when determining which carrier has the most affordable prices for you.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are generally more expensive for those who are single than they are for married drivers? That's because policies for married policyholders normally cover several vehicles, which many carriers will give you a discount for.

For single policyholders, the difference in average prices between these two companies is significant, with Aig premiums coming in at a quarter less than Mercury's. The advantage is also clear for married couples - Mercury offers the lowest average rates.

Aig or Mercury: Average Rates by Gender

You may not know, but auto insurance is usually cheaper for women than it is for men. That's because men are more likely to get tickets and get into collisions, which raises the chances of filing a claim with insurance.

With Aig, men typically pay about 5% more a month than women., and around 5% with Mercury.

When it comes to the cheapest premiums for each gender, Aig comes out as the lowest option for both genders. On average, male drivers save about $28 per month and women save about $29 with Aig compared to the average Mercury policyholder.

Aig vs. Mercury: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, car insurance isn't the easiest topic to understand. There are so many different coverages and terms that it can make it pretty confusing to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (that covers bodily injury and property damage for other drivers and their passengers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to what you get with a liability policy).

Looking specifically at state minimum limits for liability insurance, Aig has the significant edge, with average monthly rates coming in at $129. If you want a full coverage policy with the same state minimum limits, Aig again has the edge, with policies averaging around $405 a month to Mercury's $406.

Is Aig or Mercury Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

It's no secret secret that at-fault collisions and speeding tickets lead to higher prices, but which company -- Aig or Mercury -- has the cheapest rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Aig for their car insurance can generally expect their monthly bill to go up about 25% after getting a speeding ticket. Mercury policyholders can expect a less drastic increase of around 19%.

If you have gotten a ticket, Mercury tends to offer the best prices at about 0% more affordable, while Aig has the edge for drivers with a clean record.

Which Company is Best for Drivers After an Accident?

Aig drivers who get in an accident can expect to see their premiums increase by just under $85, while those who have insurance through Mercury will see around a $100 increase.

At the end of the day, drivers who use Aig end up with the cheaper prices after an accident, with average prices coming in at $305 compared to Mercury Insurance's $346.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your insurance bill. On average, Mercury will raise your premiums about 22% after a DUI, while Aig's average rates climb by nearly 10%.

How does Credit Score Impact Aig and Mercury Rates?

Did you know many car insurance carriers take into account your credit score when determining prices? This isn't true for everyone (for example, California and Michigan are two states that ban the practice entirely), but it will come into play for several policyholders.

The reasoning insurance companies use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper rates, while those with poor credit will normally be forced to pay more.

Looking specifically at Mercury and Aig, which carrier has the most affordable premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Aig or Mercury Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in your monthly auto insurance cost. That's because the fewer miles you put on your vehicle, the less likely you are to be in a collision and file an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Mercury charges. However, there's a small difference in monthly prices for Aig, with drivers who put 6,000 miles on their car yearly paying around $8 less every month compared to those who drive 12,000 miles each year. Still, for drivers in both categories, Aig is the cheaper carrier.

Aig or Mercury: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a considerable role in how much you pay for insurance. Usually, if you live in an urban area with more cars on the road, you'll pay a little more for auto insurance, while the opposite is true for people in rural areas.

Aig typically comes out as the less expensive option for drivers in rural and urban areas, while Mercury wins in suburban areas.

For drivers in urban ZIP codes, AIG's average rates are about 18% less than Mercury Insurance. People who live in suburban areas pay around 3% less with Mercury compared to Aig. Those in rural areas can expect to save about 11% with Aig compared to Mercury.

Aig vs. Mercury Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many insurance discounts as possible.

But where do you even start? With so many discounts out there, it may seem difficult to find all the of the ones you're eligible for.

Luckily, we did the hard work for you and compared all of the different discounts offered by Aig and Mercury so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

Mercury blows Aig away when it comes to the sheer amount of discounts available, offering 27 different discounts to Aig's 13.

Both carriers offer many of the same discounts -- like advance quote discounts, discounts for being a defensive driver, distant student discounts, and multi-policy discounts -- but Mercury also offers discounts for continuous insurance, COVID-19 relief, DRL, and more.

On the other hand, Aig has a few proprietary discounts of their own for things like guard gated discounts, hybrid vehicle discounts, and low mileage discounts.

Final Thoughts: Is Aig or Mercury Best for You?

So, we've broken down the average premiums for many of the variables car insurance companies look at, and we've shown you all the discounts each company offers. But, when it comes down to it, is Aig or Mercury the right carrier for you, your vehicle, and your wallet?

Aig might be best for you if....

• Your driving record includes a DUI charge.
• You want the most robust protection via a "full coverage" policy.
• You live in a rural area.

Mercury might be best for you if...

• You've received a ticket for speeding recently and don't want to see your rates rise.
• You live in an suburban area.
• You are purchasing your auto insurance with a spouse.

Hopefully, this guide has ben a valuable resource as you compare Aig and Mercury and that it aids in making a more informed decision about your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just Aig and Mercury. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top auto insurance companies in your area, all in just a few minutes.

Aig vs. Mercury FAQs

Is Aig or Mercury cheaper?

Aig is the cheaper of the two carriers when looking at national average prices, with policies averaging $267 per month with Aig and $295 for Mercury. Even so, that doesn't mean Aig will be the lowest carrier for everyone, since there are a variety of different factors (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, Aig or Mercury?

Sadly, the real answer is "it depends.". No single company is "better" for everyone -- it all boils down to your unique car insurance profile. For example, Mercury is less expensive for drivers with excellent credit, while Aig offers more affordable premiums for drivers with a recent DUI.

Why do Aig and Mercury offer me different rates?

Insurance companies use a lot of different variables when calculating the prices they charge. Factors like where your home is, where you live, gender, age, and sometimes even things like your credit score can all be used. Both Aig and Mercury calculate premiums differently, so it's likely they'll offer different rates. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from a bunch of different carriers.

How do I know if Aig or Mercury is right for me?

The only way to find the auto insurance company that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code and you'll get quotes from dozens of your local top insurance carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't Aig or Mercury at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.