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

Quick Facts

• Looking at the national averages for insurance, Farmers offers significantly cheaper rates than Mercury
• Farmers tends to be a much more affordable option for single people who will be the only person on the car insurance policy
• Farmers offers more affordable prices for policyholders whose driving record contains an at-fault collision

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

Are you in the market for 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 Farmers or Mercury as potential options, but which one will save you the most?

As you can see, Farmers has average rates that are around 30% a month cheaper than those from Mercury when looking at the national average rates for auto insurance.

That being said, that doesn't mean Farmers will necessarily be less expensive than Mercury for each driver. Car insurance carriers use a variety of complex algorithms to determine premiums, so depending on where you live or how good your credit score is (among a whole range of other factors), you could see wildly different rates from the ones above.

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

Farmers vs. Mercury: Average Car Insurance Rates by State

Farmers and Mercury compete against each other in five states, with Mercury offering more affordable rates to the average driver in all of them. If you live in Oklahoma, Farmers is the less expensive of the two companies when looking at the overall average prices. Mercury is the more affordable option in Arizona, California, Illinois, and Nevada.

But there's more to insurance than just the state you live in. As we mentioned above, there's a lot of things that go into how auto insurance carriers calculate your premiums. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for car insurance than any other group of drivers. It's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

However, that doesn't mean teen drivers can't still save money on their insurance. For example, 18-year-old drivers pay an average of almost 25% less per month by choosing Farmers over Mercury.

But both companies will offer you dramatically lower prices by the time drivers turn 25. For example, average rates for Farmers policyholders decrease over 70% and Mercury's premiums lower nearly 70% over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best premiums for retired drivers between Farmers and Mercury? Farmers gets the edge, with prices for drivers 65 and older $76 cheaper than the national average for Mercury.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are typically more affordable for married couples than they are for those who are single? This usually boils down to married drivers having more than one vehicle on their policy -- something many insurance carriers will reward with discounts.

For single policyholders, the difference in average rates between these two companies is significant, with Farmers premiums coming in at a third less than Mercury's. The advantage for married policyholders with Farmers is also obvious, where drivers save almost 30% a month.

Farmers or Mercury: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to car insurance men will usually end up paying a little more.

On average, women see rates about $7 per month cheaper with Farmers, and around $15 with Mercury.

Looking at the data for each company specifically, Farmers comes out on top for both men and women, with average prices 31% less for men and 31% cheaper for women.

Farmers 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.

Auto insurance can be a complicated subject for most people. Everyone needs car insurance, but there are so many different limits and terms that it can be hard to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (which provides property damage and bodily injury coverage for other drivers and passengers if you cause a collision) and full coverage (which typically refers to having collision and comprehensive coverages in addition to what you get with liability coverage).

Looking specifically at state minimum liability limits, Farmers has the significant edge, with average monthly premiums coming in at $126. If you want a full coverage policy with the same state minimum limits, Farmers again has the edge, with policies averaging about $281 a month to Mercury's $406.

Is Farmers or Mercury Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance carriers offering great prices 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 speeding tickets lead to higher rates, but which carrier -- Farmers or Mercury -- has the cheapest premiums for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Farmers for their auto insurance can normally expect their monthly bill to go up around 21% after getting a speeding ticket. Mercury policyholders can expect a less drastic increase of about 19%.

Even so, Farmers tends to offer the best prices for both drivers who have clean records and those with a recent ticket, offering prices that are 32% and 30% less expensive, respectively, compared to Mercury Insurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through Farmers can expect to see around an $62 -- or about 28% -- rise in their auto insurance rates. Drivers who use Mercury for their car insurance will see a monthly bill around $109 (or 32%) more expensive after reporting an accident to their auto insurance company.

At the end of the day, drivers who use Farmers end up with the cheaper prices after an accident, with average premiums coming in at $224 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 accident or speeding ticket when it comes to your car insurance bill. For example, Mercury increases average rates by more than $65 per month -- that's more than a 20% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Farmers tends to be more affordable for the average driver, with monthly premiums coming in at about $221 to Mercury's $303.

How does Credit Score Impact Farmers and Mercury Rates?

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

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

So, which carrier offers the lowest prices for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, Farmers will generally reward you the most. For policyholders with "excellent" credit scores, Farmers comes in over 26.46 cheaper. Drivers with "good" credit scores usually save around 30% with Farmers compared to average rates from Mercury.

Which Company is Best for Drivers with Bad Credit?

Farmers typically offers lower prices than Mercury when it comes to drivers with bad credit. Drivers with "fair" credit pay about 31% a month less with Farmers compared to Mercury, and those with "poor" scores generally save an average of around 37% a month.

Is Farmers 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 insurance payment. That's because the fewer miles you drive, the less likely you are to be in a collision and file an insurance claim.

In this case, neither Farmers or Mercury report increasing premiums for drivers with higher annual mileage figures. That being said, Farmers comes out as the cheapest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their car annually, with average prices of $203 per month for both.

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

Where your home is can play a big role in how much you pay for car insurance. Typically, 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.

When comparing these two companies side-by-side, Farmers normally comes out as the most affordable option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Those in rural areas can expect to save about $39 with Farmers compared to Mercury. People who live in suburban areas pay around $86 less with Farmers compared to Mercury. For drivers in urban ZIP codes, Farmers Insurance's average rates are about $150 less than Mercury Insurance.

Farmers vs. Mercury Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can. That's where car insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be difficult to nail down the company 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 broke down all of the different discounts offered by both Farmers and Mercury so that you can see which carrier can save you the most money each month.

Looking at the total number of discounts, Farmers comes out ahead with 28 discounts to Mercury's 27.

Both carriers offer quite a few of the same discounts -- like advance quote discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good student -- but Farmers also offers discounts for alternative fuel, driver training, EFT, and more.

On the other hand, Mercury has a few proprietary discounts of their own for things like continuous insurance discounts, COVID-19 relief discount, DRL discounts, and more.

Final Thoughts: Is Farmers or Mercury Best for You?

You've seen the effect certain factors have on your auto insurance and the different discounts companies offer. But, when it comes down to it, is Farmers or Mercury the right one for you and your specific needs?

Farmers might be best for you if....

• You will be the only person on the car insurance policy.
• Your credit score is high.
• You and your spouse are buying insurance together.

Mercury might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide helps you get a good idea of the differences between Farmers 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 car insurance policy is to compare quotes from a handful of carriers, not just Farmers and Mercury. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

Farmers vs. Mercury FAQs

Is Farmers or Mercury cheaper?

Farmers is the more affordable of the two carriers when looking at national average premiums, with policies averaging $203 a month with Farmers and $295 for Mercury. But that doesn't mean Farmers will be the lowest carrier for every policyholder, since there are lots of different variables that come into play when it comes to your car insurance cost.

Who is better, Farmers or Mercury?

Sadly, the real answer is "it depends.". No one company is necessarily "better" for each policyholder -- it all depends on the makeup of your unique insurance profile.

Why do Farmers and Mercury offer me different rates?

Auto insurance companies use quite a few different factors when calculating the rates they charge. Variables like your driving record, age, gender, where you call home, and sometimes even things like your credit score can all be used. Both Farmers and Mercury calculate prices using different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from many different carriers.

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

The only way to find the 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, Compare.com makes it easy for you to do just that. Just enter your area information 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 cheapest premium. And maybe you'll find that the best carrier for you isn't Farmers 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.