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

Quick Facts

• Based on national averages for car insurance, Mercury offers significantly more affordable rates than Preferred Mutual
• Mercury tends to be a much cheaper option for single people who will be the only person on the insurance policy
• Preferred Mutual has less expensive prices in MA and NY

Mercury or Preferred Mutual: 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 hefty savings. But exactly how much can you save by switching?

You might be considering Mercury or Preferred Mutual, but which one has cheaper premiums for car insurance?

Looking at nationwide averages, Mercury has average rates that are around 45% a month more affordable than those from Preferred Mutual.

But that doesn't necessarily mean Mercury will be the less expensive option for each driver. Insurance carriers vary their rates depending on things like how clean your driving record is, how old you are, where you live, how good your credit score is, and tons of other factors, so prices will change quite a bit from person to person.

Wanting to know if Mercury or Preferred Mutual is really the right company for you? Keep on reading to see how average rates can change based on all of the factors we've mentioned above.

Mercury vs. Preferred Mutual: Average Car Insurance Rates by State

Mercury and Preferred Mutual only compete against each other in one states, with Preferred Mutual offering cheaper prices to the average driver in all of them. New York has the most noticable difference, where Preferred Mutual premiums are $326 less expensive than auto insurance prices at Mercury.

There's a lot more that goes into your insurance cost than just where you live. Read on to find out more.

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 group out there on the road. 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. As you can see above, teens who use Mercury save over 35% per month compared to those who use Preferred Mutual. It's worth noting that Mercury offers auto insurance in 11 different states compared to Preferred Mutual's two, which can skew the average premiums a bit, but the difference here is still considerable.

However, both companies will offer you dramatically lower prices by the time you turn 25. For example, average premiums for Mercury policyholders drop almost 70% and Preferred Mutual's rates reduce more than 55% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the cheapest insurance premiums out there. After all, they've likely been driving for quite some time, which generally decreases their chances of collisions and other infractions that can raise rates.

So, which carrier offers the best prices to retired drivers? Mercury gets the edge here, with average premiums coming in at about $219 a month compared to Preferred Mutual's $398.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance rates tend to be more expensive for those who are single than they are for married drivers. That's typically because married couples tend to own and insure several vehicles, which can often earn you a discount.

For single drivers, the difference in average prices between these two carriers is significant, with Mercury rates coming in at around half of Preferred Mutual's. The advantage is also clear for married policyholders - Mercury offers the most affordable average premiums.

Mercury or Preferred Mutual: Average Rates by Gender

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

Normally, men see prices about 5% a month higher with Mercury, and around 3% with Preferred Mutual.

Looking at the data for each company specifically, Mercury offers the lowest average rates for both men and women. On average, male drivers save about $248 per month and women save about $246 with Mercury compared to the average Preferred Mutual policyholder.

Mercury vs. Preferred Mutual: 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, auto insurance isn't the easiest topic to understand. There are a variety of different coverages that account for a range 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.

That being said, most policies end up falling into two different types of coverage -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause an accident) and full coverage (which usually refers to having collision and comprehensive coverages in addition to liability).

Looking specifically at state minimum limits for liability insurance, Mercury has the edge, with average monthly prices coming in at $184. If you want a full coverage policy with the same state minimum limits, Mercury again has the edge, with policies averaging around $406 a month to Preferred Mutual's $850.

Is Mercury or Preferred Mutual Better for Drivers with Spotty Records?

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

At-fault accidents and speeding tickets will most likely raise your premiums, but is Mercury or Preferred Mutual more affordable for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Mercury for their insurance can typically expect their monthly bill to go up about 19% after getting a speeding ticket. Preferred Mutual policyholders can expect a less drastic increase of around 1%.

Even so, Mercury tends to offer the best prices for drivers both with a ticket and with a clean record, offering rates that are $152 and $98 cheaper, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Mercury drivers who get in a collision can expect to see their prices climb by over 30%, while those who have insurance through Preferred Mutual will see about a 20% increase.

At the end of the day, the less expensive premiums come from Mercury, with average prices coming in at $346 compared to Preferred Mutual's $486.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly auto insurance bill -- normally a lot more than an accident or speeding ticket. On average, Preferred Mutual will climb your premiums around 57% after a DUI, while Mercury's average rates increase by more than 20%.

Mercury has the overall most affordable premiums for drivers with a DUI on their records at $303 per month, but it's worth noting that Mercury's average rates come from 11 states compared to just two for Preferred Mutual, so the data may be skewed slightly.

How does Credit Score Impact Mercury and Preferred Mutual Rates?

Often times, your credit score can come into play when companies determine your monthly bill. This isn't true for everyone (for example, Hawaii and Massachusetts are two states that ban the practice entirely), but it might come into play for several policyholders.

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

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

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, Mercury will typically reward you the most. For policyholders with "excellent" credit scores, Mercury comes in over 55.49 more affordable. Drivers with "good" credit scores generally save about 53% with Mercury compared to average prices from Preferred Mutual.

Which Company is Best for Drivers with Bad Credit?

Mercury typically offers lower premiums than Preferred Mutual when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 54% per month less with Mercury compared to Preferred Mutual, and those with "poor" scores usually save an average of about 51% monthly.

Is Mercury or Preferred Mutual 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 how much insurance companies will charge for coverage. That's because the fewer miles you put on your car each year, 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 rates for Preferred Mutual, with drivers who put 6,000 miles on their vehicle yearly paying around $2 less each month compared to those who drive 12,000 miles every year. Still, for drivers in both categories, Mercury is the less expensive company.

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

Where you call home can have a pretty big impact on your monthly car insurance payment. Normally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders since there are a lot more cars on the roads where they live.

Mercury boasts the cheapest average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

In urban areas, Mercury's average rates are about $401 a month compared to Preferred Mutual's $902. Drivers in suburban ZIP codes pay a monthly price of around $275 with Mercury compared to $472 with Preferred Mutual. If you live in a rural area, you can expect to pay about $209 per month with Mercury and $253 with Preferred Mutual.

Mercury vs. Preferred Mutual Discounts

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

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you can take advantage of.

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

Mercury blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 13 more discounts than Preferred Mutual.

A couple of those are overlapping for things like anti-theft discounts, DRL discounts, discounts for being a good driver, and mature driver discounts. Mercury also offers discounts for advance quote, continuous insurance, COVID-19 relief, and more.

On the other hand, Preferred Mutual has a few proprietary discounts of their own like annual mileage discounts and new business discounts.

Final Thoughts: Is Mercury or Preferred Mutual Best for You?

So, we've broken down the average prices for many of the variables insurance carriers look at, and we've shown you all the discounts each carrier offers. That's all well and good, but at the end of the day, which company is the right carrier for you, your vehicle, and your wallet?

Mercury might be best for you if....

• You don't have any speeding tickets, DUIs, or at-fault collisions on your record.
• You have below-average credit.
• You've started working from home and don't have much of a commute.

Preferred Mutual might be best for you if...

• You live in one of the following states: Massachusetts and New York.

Hopefully, this guide helps you get a better idea of the difference between Mercury and Preferred Mutual. 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 insurance policy is to compare quotes from several companies, not just Mercury and Preferred Mutual. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top auto insurance carriers in your area, all in just a few minutes.

Mercury vs. Preferred Mutual FAQs

Is Mercury or Preferred Mutual cheaper?

Mercury is the more affordable of the two companies when looking at national average premiums, with policies averaging $295 per month with Mercury and $542 for Preferred Mutual. That being said, that doesn't mean Mercury will be the lowest carrier for everyone, since there are multiple different factors that come into play when it comes to your car insurance bill.

Who is better, Mercury or Preferred Mutual?

Sadly, the only answer we can give you is "it depends.". No one company is "better" for everyone -- it all boils down to your unique insurance profile.

Why do Mercury and Preferred Mutual offer me different rates?

Auto insurance carriers use many different variables when determining the prices they charge. Things such as gender, your driving record, where you park your vehicle, age, and sometimes even things like your credit score can all come into play. Both Mercury and Preferred Mutual calculate rates using different factors, so it's likely they'll offer different premiums. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from a bunch of different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from multiple carriers 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 information once and you'll get quotes from dozens of your local top auto insurance companies for free. That way, you can guarantee you're getting the most affordable rate. And maybe you'll find that the best carrier for you isn't Mercury or Preferred Mutual 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.