American Family vs. Mercury: Which Is the Best? (2024)

American Family’s low rates and additional add-ons earn it a higher IQ Score of 9.1.

Anna Baluch
Written byAnna Baluch
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Anna BaluchInsurance Writer
  • 4+ years writing insurance and personal finance content

  • MBA from Roosevelt University

Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated October 29, 2024

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American Family and Mercury are two midsize insurance companies to consider when shopping for car insurance. Both insurers hold a longstanding history in the insurance industry and offer a variety of insurance services. But American Family offers more discounts and a wider selection of add-ons.

Learn more about how American Family and Mercury compare in terms of rates, customer service, discounts, and coverage levels to make an informed decision for your unique situation.

Quick Facts
  • Mercury’s MercuryGO is a usage-based insurance app that offers better savings opportunities than American Family’s MilesMyWay program for low-mileage drivers.

  • American Family offers accident forgiveness as well as accidental death and dismemberment coverage.

  • American Family is available in 19 U.S. states, while Mercury operates in only 11 states.

American Family vs. Mercury: The verdict

American Family and Mercury are both reputable car insurance companies. If you’re looking for lower rates and more discount opportunities, American Family is likely the way to go — especially if you live in one of the 19 states it serves.

While Mercury offers higher premiums for most drivers, it may still be a good choice if you can land an affordable price through MercuryGo, the company’s usage-based insurance app. Its coverage might also be worth exploring if you’re a driver in one of the 11 states Mercury operates in and want to work with local Mercury insurance agents.

Here’s a look at how the two car insurers stack up against each other.

Factor
American Family
Mercury
IQ Score9.18.0
Customer satisfaction score3.53.4
Average quote: liability only$75$81
Number of discounts188
Number of states where it operates1911
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

American Family

Founded in 1927 and headquartered in Madison, Wisconsin, American Family is the eighth-largest private passenger auto insurer and offers more than a dozen insurance products in 19 states.[1]

Compare personalized, real-time quotes
User Reviews
3.4
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.1/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$75/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$167/mo

Founded in 1927 in Madison, Wisconsin, American Family Insurance offers more than a dozen types of insurance in 18 states throughout the midwestern and western U.S. The company has an excellent rating from A.M. Best for both financial strength and credit. American Family stands out for its high rate of customer satisfaction, with largely positive online consumer reviews and a well below-average number of complaints in the National Association of Insurance Commissioners Consumer Complaint Index. American Family offers car insurance policyholders 16 different discounts to help lower their rates.

Pros
  • High rates of customer satisfaction

  • Numerous discount and coverage options

Cons
  • Only available in 18 states

  • Rates are merely moderate compared to other insurers

Read more driver reviews of American Family
Thad - October 29, 2024
Verified

Great

They will work with you to help you get the best coverage for your dollar.

William - October 28, 2024
Verified

Price

The rates increase with every renewal period.

Karla - October 23, 2024
Verified

Experience

They were good, but my insurance kept increasing. It just became too expensive.

Mercury

Mercury made its debut in 1961 and serves drivers in 11 states with home insurance, renters insurance, business insurance, and car insurance through an agent network. Mercury is the 16th-largest private passenger auto insurer.

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User Reviews
3.3
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.0/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$81/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$161/mo

Mercury is a 62-year-old insurance company that sells auto, home, condo, renters, and business insurance. In addition to standard car insurance coverage types, Mercury also offers rental car reimbursement, roadside assistance, rideshare insurance, and more. Mercury customers can save with multiple discounts, and the opportunity to bundle their auto insurance with home or renters coverage. The compay has an A rating from A.M. Best for financial stability. Mercury has nearly twice as many complaints as expected in the National Association of Insurance Commissioner’s Consumer Complaints Index. However, J.D. Power ranked the company fourth incustomer satisfaction in California.

Pros
  • Numerous coverage options, discounts, and bundling opportunities

  • Competitive auto insurance prices

Cons
  • Only available in 11 states (including California)

  • Only available in 11 states (including California)

Read more driver reviews of Mercury
Oscar - October 28, 2024
Verified

Excellent

Best price I have seen.

Marla - October 28, 2024
Verified

Sometimes confusing

It's difficult when all communication has to be done online.

Robert - October 28, 2024
Verified

Low Rates

I've been with them for 3 years and I still haven't received the policy. The good thing is that it's only $160.00 for 2 vehicles with full coverage and towing.

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American Family MilesMyWay vs. MercuryGO

American Family MilesMyWay was designed for drivers who travel less than 8,000 miles each year. Once you install the mobile app and place the sensor in your car, it detects when you’re driving. The insurer calculates your savings each month based on the miles you drive, and you can earn up to 25% off.

If you go on a road trip and drive more than usual, your premium will stay the same. On the flip side, you can lock in a lower rate for driving less than normal.

Mercury’s MercuryGO is a virtual driving coach and usage-based telematics program that monitors your driving habits, scores you based on your safety, and gives you a discount based on your score. To participate, download the app and score 5% off (or up to 10% off if you’re a teen driver) just for signing up.

If you prove you’re a safe driver, you may also enjoy up to 40% off when you renew your auto insurance policy. Fortunately, your premium won’t increase if you earn a low score.

American Family vs. Mercury: Which is the cheapest?

American Family Insurance offers cheaper premiums than Mercury on average for different coverage options. But your car insurance rates will ultimately depend on important factors like your ZIP code, location, age and gender, driving history, vehicle type, credit history, and qualifying discounts.[2]

American Family: Cheapest for drivers with a clean driving record

Good drivers usually pay the lowest rates since they’re less likely to file a claim. American Family has lower rates, on average, for drivers with a clean record.

Driver Type
American Family
Mercury
Clean driving record$75$81
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

American Family: Cheapest for drivers with a speeding ticket

Insurance costs more for drivers with a moving violation due to an increased risk of an accident from reckless driving behavior. Drivers with a speeding ticket will likely land the cheapest car insurance rates with American Family.

Driver Type
American Family
Mercury
Drivers with a speeding ticket$88$111
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

American Family: Cheapest for teen drivers

Young drivers pay some of the highest rates for auto insurance due to their lack of experience and increased accident risk.[3] American Family offers lower rates for teen drivers with limited experience on the road.

Driver Type
American Family
Mercury
18-year-old$129$150
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

American Family: Cheapest for senior drivers

Drivers age 70 and older typically pay higher insurance premiums since age-related conditions can increase the likelihood of an accident.[4] Senior drivers may find slightly cheaper car insurance rates with American Family, though Mercury also has competitive rates.

Driver Type
American Family
Mercury
Senior drivers$55$59
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

American Family: Cheapest for drivers with bad credit

Your credit can affect what you pay for insurance — especially if you have bad credit. American Family offers cheaper premiums for drivers with poor credit.

Driver Type
American Family
Mercury
Drivers with bad credit$84$96
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: American Family vs. Mercury

American Family and Mercury both offer standard auto coverages to protect you after a car accident. These include bodily injury liability, property damage liability, medical payments, personal injury protection, uninsured/underinsured motorist coverage, collision coverage, comprehensive coverage, and full-coverage insurance.

Note that every state except New Hampshire requires drivers to have a minimum amount of liability insurance.

The two insurers also allow drivers to choose from a list of add-ons and endorsements for more protection. But American Family offers more options, including accidental death and dismemberment and accident forgiveness coverage. Compare the coverage options of American Family and Mercury in the table below.

Coverage
American Family
Mercury
Roadside assistance YesYes
Accidental death and dismembermentYesNo
Accident forgivenessYesNo
Rental car reimbursement YesYes
Ride-hailing YesYes
Gap insuranceYesYes

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Compare discounts: American Family vs. Mercury

American Family and Mercury both advertise a variety of discounts to help you lock in a good deal based on your driving history and coverage needs. American Family offers more discount opportunities than Mercury, but it’s a good idea to reach out to both auto insurers to find out which discounts might apply to you.

Discount
American Family
Mercury
Clean driving recordYesYes
Defensive driving courseYes (in some states)No
Multi-policyYesYes
Multi-carYesYes
Low mileageYesYes
Telematics (safe driving app)YesYes
Anti-theft deviceNoYes
New carNoNo
Military/affiliationNoNo
Good studentYesYes
LoyaltyYesNo
Auto-payYesYes
Student away at schoolYesNo
HomeownerYesYes
Alternative fuelNoNo

American Family vs. Mercury FAQs

Consider this additional information to learn more about American Family and Mercury car insurance.

  • Why is Mercury insurance so cheap?

    Mercury’s discount opportunities and MercuryGO, the usage-based telematics program, provide affordable premiums for drivers. Your location, age, ZIP code, and driving history will determine your specific rates.

  • Is Mercury reputable?

    Yes. Mercury is a reputable car insurance company with insurance experts that’s been in business since 1971. It earned an A (Excellent) financial strength rating from AM Best.

  • Is American Family good at paying claims?

    Yes. Since American Family holds an AM Best financial strength rating of A (Excellent), it’s good at paying claims. This can be very reassuring if you decide to go with American Family for your car insurance coverage and need to file an insurance claim.

  • What are the main differences between American Family and Mercury Insurance?

    American Family offers lower average rates and more add-ons than Mercury. It’s also available in 19 states. But Mercury, which is only available in 11 states, has a unique usage-based telematics program that gives auto owners a chance to save up to 40% on premiums.

Sources

  1. National Association of Insurance Commissioners. "2023 Top 25 Groups and Companies by Countrywide Premium."
  2. Insurance Information Institute. "What determines the price of an auto insurance policy?."
  3. Insurance Information Institute. "Auto insurance for teen drivers."
  4. Insurance Information Institute. "Senior driving safety and insurance tips."
Anna Baluch
Anna BaluchInsurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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