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

Quick Facts

• Based on national averages for car insurance, Direct Auto offers significantly cheaper rates than Mercury
• Direct Auto has more affordable premiums for policyholders who haven't received any speeding tickets or been in an accident in the last few years
• Mercury offers more discounts than Direct Auto Insurance

Direct Auto vs. Mercury: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering large discounts. But exactly how much can you save by switching?

You've maybe even narrowed your search down to Direct Auto or Mercury as potential options, but which carrier will offer you less expensive prices?

Looking at nationwide averages, Mercury is quite a bit more expensive than Direct Auto, with premiums averaging $295 per month compared to just $170 with Direct Auto.

Even so, Direct Auto may not be the lowest or best option for each driver out there. After all, auto insurance companies can offer drastically different rates to each driver depending on rating factors like your age, your driving record, your credit score, or even where you call home (among other things), so rates could change drastically from person to person.

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

Direct Auto or Mercury: Average Car Insurance Rates by State

Direct Auto and Mercury only compete against each other in one states, with Direct Auto offering more affordable prices to the average driver in all of them. Florida has the most noticable difference, where Direct Auto rates are over 30% less expensive than insurance premiums at Mercury.

That being said, there's a lot more that goes into your car insurance payment than just where you call home. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

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

That being said, that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. As you can see above, teens who use Direct Auto save more than $350 a month compared to those who use Mercury.

But with both carriers, you'll see your rates reduce significantly by the time you turn 25. Mercury offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, Direct Auto still has the most affordable premiums at $158 per month.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the cheapest car insurance prices you'll ever find. After all, they've likely been driving for quite some time, which usually decreases their chances of accidents and other infractions that can increase rates.

When looking at Direct Auto and Mercury specifically, which company is best for retired drivers? Direct Auto gets the edge, with prices for drivers 65 and older nearly 45% cheaper than the national average for Mercury.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are normally less expensive for married couples than they are for those who are single? That's generally because married drivers tend to own and insure several cars, which can often earn you a discount.

When it comes to relationship status, Direct Auto is the clear winner for single policyholders, with rates about $161 per month cheaper than Mercury, on average. For married policyholders, the advantage is clear again - Direct Auto has the edge when it comes to average premiums.

Direct Auto vs. Mercury: Average Rates by Gender

Did you know women usually pay less for car insurance than men? This is because men are statistically more likely than women to get pulled over for speeding or get into a collision, which leads to increased risk for insurers and, therefore, higher rates.

With Direct Auto, women normally pay around $4 a month less than men, and almost $15 cheaper with Mercury when compared to their male counterparts.

Looking at overall affordability, Direct Auto comes out as the lowest option for both genders, with average prices 43% less for men and 42% cheaper for women.

Direct Auto or 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.

Insurance can be a complicated subject for most people. There are so many different limits and terms that it can make it pretty confusing to find the right policy.

However, most policies that many drivers look at fall into two categories -- liability only (which provides property damage and bodily injury coverage for other drivers and passengers if you cause an accident) and full coverage (which typically refers to having comprehensive and collision coverages in addition to liability).

If you're looking for state minimum liability insurance, Direct Auto normally offers significantly more affordable rates of $96 compared to Mercury's $184. When it comes to full coverage policies with similar limits, Direct Auto again has the edge, with policies about $150 per month less expensive than Mercury, on average.

Is Direct Auto or Mercury Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance companies offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that at-fault collisions and tickets lead to higher prices, but which carrier -- Direct Auto or Mercury -- has the most affordable premiums for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Direct Auto policyholders can expect their prices to go up an average of $38 a month if they get a ticket, while Mercury typically raises rates around $57 per month, on average.

But Direct Auto is generally the more affordable option for both drivers who have a recent speeding ticket and those with clean records. Drivers with a clean record can save about $94 a month and drivers with a ticket can save around $113 per month with Direct Auto Insurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through Direct Auto can expect to see about an $47 -- or around 25% -- increase in their insurance prices. Drivers who use Mercury for their auto insurance will see a monthly bill about $109 (or 32%) more expensive after reporting a collision to their insurance company.

Overall, drivers who use Direct Auto end up with the cheaper prices after an accident, with monthly rates averaging $190 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 an accident. Mercury drivers usually see a 22% climb in their car insurance premiums after a DUI charge, while Direct Auto will usually raise prices by around 13%.

How does Credit Score Impact Direct Auto and Mercury Rates?

You may not have known, but your credit score can come into play when carriers calculate your monthly bill. This isn't always the case (for example, California and Massachusetts are two states that ban the practice entirely), but it will come into play for a lot of drivers.

Insurance companies argue that those with poor credit scores are less likely to pay their bills on time every month, which increases the risk involved on their end, while the opposite is true for those with good credit.

So, which carrier offers the cheapest premiums for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

How much you drive can have a pretty big impact on how much car insurance carriers will charge for coverage. That's because the fewer miles you put on your vehicle, the less likely you are to get into a collision and cause an insurance claim.

In this case, neither Direct Auto or Mercury report increasing rates for drivers with higher annual mileage figures. Direct Auto comes out as the lowest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their car annually, with average premiums of $170 a month for both.

Direct Auto vs. Mercury: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your vehicle can play a considerable role in how much you pay for auto insurance. Typically, those who live in urban areas will pay more than drivers in rural areas because there are a lot more cars on the roads in those areas.

Direct Auto tends to offer the cheapest rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the most affordable premiums from both companies, but Direct Auto comes out on top with average prices about $116 a month. Direct Auto also has cheaper average rates for drivers in urban and suburban ZIP codes -- a 44% and 39% per month respective difference when compared to Mercury policyholders in similar areas.

Direct Auto vs. Mercury Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be hard to find all the ones you can take advantage of or to nail down the carrier that has the most discounts for your unique driver profile.

In the table below, we've broken down all of the different discounts offered by both Direct Auto and Mercury so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Mercury knocks Direct Auto out of the park when it comes to the sheer number of discounts available, offering eight more discounts than Direct Auto.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, discounts for being a good driver, and discounts for being a homeowner. Mercury also offers continuous insurance discounts, COVID-19 relief discount, distant student discounts, and more that Direct Auto does not.

On the flip side, Direct Auto has a couple unique discounts of its own -- bike policy discounts, EFT discounts, life policy discounts, and more.

Final Thoughts: Is Direct Auto or Mercury Best for You?

So, you've seen how different variables can affect your car insurance premiums. We've broken down the different discounts each company offers, too. But, at the end of the day, is Direct Auto or Mercury the right fit for you?

Direct Auto might be best for you if....

• You have a clean driving record, free of accidents, tickets, or DUIs.
• Your home is in a busy urban area.
• You drive fewer than 12,000 miles each year.

Mercury might be best for you if...

• You're planning on moving to another state soon -- undefined only offers policies in.
• You care about discounts (Mercury offers the most).

We hope this guide has ben a valuable resource as you compare Direct Auto and Mercury. We also hope we've given you the information you need to make the best decision when it comes to your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just Direct Auto and Mercury. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

Direct Auto vs. Mercury FAQs

Is Direct Auto or Mercury cheaper?

Looking just at the national average prices, Direct Auto is the more affordable of the two carriers, offering average rates of $170 a month compared to $295 for Mercury. However, Direct Auto won't necessarily be the lowest carrier for every policyholder, since there are multiple different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Direct Auto or Mercury?

Unfortunately, the real answer is "it depends.". Neither company is "better" for everyone -- it all depends on the makeup of your unique auto insurance profile.

Why do Direct Auto and Mercury offer me different rates?

Insurance companies take a look at many different variables when calculating the rates they charge drivers. Factors such as age, where you call home, your driving record, gender, and sometimes even things like your credit score can all be taken into consideration. Both Direct Auto and Mercury calculate prices using different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from a variety of different carriers.

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

The only way to find the car 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 do all the hard work for you. Just enter your ZIP code and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be Direct Auto or Mercury at all!

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.