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

Quick Facts

• Looking at the national averages for car insurance, American Family offers significantly less expensive prices than Mercury
• American Family offers more affordable rates for policyholders who have a clean driving record, free of collisions, tickets, or DUIs
• Mercury may help you save more money -- they offer more discounts than American Family Insurance

American Family or Mercury: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering large savings, but exactly how much money can you save by switching?

You've maybe even narrowed it down to American Family or Mercury, but between the two, which one has cheaper prices for insurance?

Looking at the national average rates for both carriers, American Family has average rates that are around 55% a month less expensive than those from Mercury.

However, that doesn't mean American Family will necessarily be more affordable than Mercury for each driver. Car insurance companies use a variety of complex algorithms to determine premiums, so depending on how old you are or how clean your driving record is (among several other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average prices from both American Family and Mercury by a bunch of different rate factors, so read on to find out which carrier is the best for you.

American Family vs. Mercury: Average Car Insurance Rates by State

American Family and Mercury only compete against each other in two states, with American Family offering cheaper premiums to the average driver in all of them. Nevada has the most noticable difference, where Mercury rates are $40 less expensive than auto insurance premiums at American Family.

But there's more to calculating insurance prices than just where you call home. Read on to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for auto insurance compared to older drivers. That's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of over 55% less per month by choosing American Family over Mercury.

Even so, both carriers will offer you dramatically lower prices once you turn 25. For example, average rates for American Family policyholders drop more than 60% and Mercury's premiums decrease almost 70% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the cheapest insurance rates you can find. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

So, which company offers the best prices to retired drivers? American Family gets the edge, with premiums for drivers 65 and older $112 more affordable than the national average for Mercury.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance rates tend to be more expensive for single drivers than they are for married couples. That's because policies for married policyholders typically cover more than one vehicle, which a lot of companies will give you a discount for.

For single policyholders, the difference in average prices between these two carriers is significant, with American Family rates coming in at about half of Mercury's. The advantage for married drivers with American Family is also obvious, where drivers save around $100 a month.

American Family or Mercury: Average Rates by Gender

Men normally pay more for auto insurance than women. That's because women are less likely to get into collisions and get speeding tickets, which lowers the chances of filing a claim with insurance.

Usually, men see prices about 3% per month higher with American Family, and around 5% more with Mercury.

Looking at overall affordability, American Family comes out on top for both men and women. On average, male drivers save about $159 a month and women save about $150 with American Family compared to the average Mercury policyholder.

American Family 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 can be pretty complicated. There are many different coverages that account for a variety of different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

But most policies that drivers look at fall into two categories -- liability coverage (that covers property damage and bodily injury for other drivers and passengers if you cause an accident) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with a liability policy).

Looking specifically at state minimum limits for liability insurance, American Family has the significant edge, with average monthly premiums coming in at $96. If you want a full coverage policy with the same state minimum limits, American Family again has the edge, with policies averaging around $185 per month to Mercury's $406.

Is American Family or Mercury Better for Drivers with Spotty Records?

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

Accidents and speeding tickets will most likely raise your prices, but is American Family or Mercury cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their auto insurance can typically expect their monthly bill to go up about 20% after getting a speeding ticket. Mercury policyholders can expect a less drastic increase of around 19%.

That being said, American Family is generally the more affordable option for drivers both with a ticket and with a clean record -- their rates are around 50% less expensive for drivers with clean records and 50% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

Both companies will raise premiums pretty significantly if you get into an at-fault collision with Mercury climbing by about 32%. American Family has a less extreme climb, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, the less expensive rates come from American Family, with average premiums coming in at $138 compared to Mercury Insurance's $346.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple speeding ticket or even a collision. Mercury drivers usually see a 22% climb in their car insurance rates after a DUI charge, while American Family will usually raise prices by around 25%.

How does Credit Score Impact American Family and Mercury Rates?

You may not realized it, but your credit score can come into play when carriers calculate your monthly bill. This isn't true for everyone (for example, are two states that ban the practice entirely), but it might come into play for many drivers.

The reasoning auto insurance companies use is that policyholders with bad credit will be less likely to pay their bills on time; so normally, they'll be asked to pay more, while those with good credit will be rewarded with cheaper rates.

Looking specifically at Mercury and American Family, which carrier has the best premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family 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 prices. Usually, the more milage you drive, the more you can expect to pay for insurance.

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 premiums for American Family, with policyholders who drive the least paying about $5 less every month compared to those who drive 12,000 miles annually. Still, for drivers in both categories, American Family is the more affordable carrier.

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

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a substantial impact as well. Typically, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers since there are a lot more cars on the road where they live, which increases the chances of an accident.

American Family tends to offer the cheapest rates for drivers in all areas, regardless of if they're urban, suburban, or rural.

Those in rural areas can expect to save around 42% with American Family compared to Mercury. People who live in suburban areas pay about 51% less with American Family compared to Mercury. For policyholders in urban ZIP codes, American Family Insurance's average prices are around 59% less than Mercury Insurance.

American Family vs. Mercury Discounts

You want to save as much money as you can, right? The best way to do that is by taking advantage of as many insurance discounts as possible.

But with what seems like a million different discounts out there, it can be challenging to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you qualify for.

Luckily, we did the hard work for you and compared all of the different discounts offered by American Family and Mercury so that you can see which company can save you the most money each month.

Mercury blows American Family away when it comes to the sheer amount of discounts available, offering 27 different discounts to American Family's 21.

A couple of those are overlapping for things like anti-theft discounts, discounts for being a defensive driver, distant student discounts, and group discounts. Mercury also offers discounts for ABS, continuous insurance, e-signature, and more.

On the other hand, American Family has a few proprietary discounts of their own for things like connect partner discounts, EFT discounts, ESC discounts, and more.

Final Thoughts: Is American Family or Mercury Best for You?

So, you've seen how different variables can affect your car insurance premiums. We've shown you all the discounts each company offers, too. That's all well and good, but at the end of the day, which carrier is the right one for you and your specific driver profile?

American Family might be best for you if....

• Your driving record includes a DUI charge.
• You're looking for the best rates on liability only coverage.
• You want to save money while purchasing auto insurance for a teenager.

Mercury might be best for you if...

• You already have plans to move to another state -- undefined only offers policies in.
• You care about discounts (Mercury offers the most).

Hopefully, this guide helps you get a better idea of the difference between American Family and Mercury. We also hope we've given you the information you need to make the best decision when it comes to your car insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several carriers, not just American Family and Mercury. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP code below and get free quotes from dozens of the top insurance companies in your area, all in just a few minutes.

American Family vs. Mercury FAQs

Is American Family or Mercury cheaper?

American Family is the cheaper of the two carriers when looking at national average prices, with policies averaging $140 a month with American Family and $295 for Mercury. But that doesn't mean American Family will be the lowest company for everyone, since there are a range of different factors (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, American Family or Mercury?

Sadly, the only answer we can give you is "it depends.". No one carrier is "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do American Family and Mercury offer me different rates?

Car insurance companies use several different variables when determining the premiums they charge. Things such as where your home is, age, where you call home, gender, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Mercury use different formulas, so it's likely they'll offer different rates. The best way to determine which company is the most affordable for you is by comparing personalized quotes from lots of different carriers.

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

The only way to find the insurance carrier that's right for you is by getting quotes from multiple companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top car insurance carriers for free. With those, you can guarantee you're getting the lowest premium. And maybe you'll find that the best company for you isn't American Family 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.