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

Quick Facts

• Based on national averages for car insurance, Mercury offers slightly more affordable premiums than AAA
• AAA has less expensive prices for residents of urban areas
• Mercury tends to be a much cheaper option for couples purchasing insurance together

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

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering huge discounts, but exactly how much money can you save by switching?

You might have narrowed your search down to AAA or Mercury as potential options, but which carrier will offer you more affordable rates?

Looking at the national average rates for both companies, Mercury is about $19 per month less expensive than AAA.

However, that doesn't necessarily mean Mercury will be the cheaper option for every single driver. After all, car insurance carriers can offer drastically different rates to each driver depending on rating factors like your driving record, where you call home, your credit score, or even your age (among other things). So, at the end of the day, prices from every company will differ quite a bit from person to person.

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

AAA or Mercury: Average Car Insurance Rates by State

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

That being said, there are plenty of other factors that go into your auto insurance bill than just where you call home. Keep reading to learn more.

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Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance rates of any other group of drivers. Generally, that's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have AAA for their car insurance pay $40 less than those who use Mercury.

Even so, both carriers will offer you dramatically lower rates once you turn 25. For example, average premiums for AAA policyholders reduce more than $400 and Mercury's rates lower nearly $500 over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best rates for retired drivers between AAA and Mercury? Mercury gets the slight edge, with prices for drivers 65 and older almost 10% more affordable than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are normally more expensive for single drivers than they are for married policyholders? This usually boils down to married drivers having more than one car on their policy -- something quite a few auto insurance companies will reward with discounts.

When it comes to relationship status, the two carriers are comparable for single policyholders, with rates only differing around $10 a month, on average. The advantage for married couples is more obvious, where drivers who use Mercury save nearly 15% per month.

AAA vs. Mercury: Average Rates by Gender

Men are statistically more likely than women to get into accidents and file an insurance claim, which means they'll typically end up paying more for insurance than women.

Men normally pay over 10% more a month than women with AAA, while with Mercury, the difference is closer to 5% per month.

When it comes to the most affordable prices for each gender, Mercury comes out as the cheapest option for both genders. On average, male drivers save about $29 a month and women save about $9 with Mercury compared to the average AAA policyholder.

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AAA 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.

For most people, car insurance isn't the easiest topic to understand. There are several different coverages that account for many different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

The two most common policies end up falling into two different types of coverage -- liability only (that covers property damage and bodily injury for other drivers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, alongside liability).

In this case, AAA offers the most affordable average premiums for state minimum liability limits, while Mercury has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $15 with AAA Insurance, while full coverage comes out to be around $55 cheaper with Mercury Insurance.

Is AAA or Mercury Better for Drivers with Spotty Records?

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

Tickets and at-fault collisions will most likely raise your premiums, but is AAA or Mercury less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

AAA policyholders can expect their rates to go up an average of $86 per month if they get a ticket, while Mercury usually raises premiums about $57 a month, on average.

If you have a clean record, AAA tends to offer the best rates at around 10% cheaper, while Mercury has the edge for drivers with a speeding ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through AAA can expect to see about an $126 -- or around 37% -- 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 an accident to their car insurance company.

Overall, AAA offers the lowest rates for drivers with an at-fault accident on their records, with monthly premiums averaging $339 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 ticket or even a collision. AAA drivers usually see a 47% climb in their insurance prices after a DUI charge, while Mercury will typically raise rates by around 22%.

If you have a DUI on your record and are looking for more affordable premiums, Mercury tends to be the much more affordable option with average prices of $303 per month compared to $403 from AAA.

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How does Credit Score Impact AAA and Mercury Rates?

In many cases, your credit score can come into play when carriers calculate your monthly bill. Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for a lot of policyholders.

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

Looking at AAA and Mercury specifically, which company has the most affordable premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, you'll usually find a better deal with AAA. Drivers with "excellent" credit can save over 15% compared to Mercury, and those with "good" scores can also expect to see savings -- about $19 or 7% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

Mercury typically offers lower prices than AAA when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around $2 per month less with Mercury compared to AAA, and those with "poor" scores usually save an average of about $133 a month.

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

How much you drive can have a sizable impact on your monthly rates. Normally, those who drive fewer miles will end up with more affordable prices since there's less of a chance of getting into an accident and causing 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 premiums for AAA, with drivers who put 6,000 miles on their car annually paying around $13 less every month compared to those who drive 12,000 miles each year. Still, Mercury is the cheaper option for drivers in both categories.

AAA vs. 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 auto insurance, but the type of area you live in can have a big impact as well. Generally, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers because of the small number of vehicles that are on the roads in those areas.

When comparing these two companies side-by-side, Mercury typically comes out as the less expensive option for drivers in rural and suburban areas, while AAA wins in urban areas.

If you live in a rural area, you can expect to save about 18% with Mercury compared to AAA. Drivers in suburban ZIP codes pay around 9% less with Mercury compared to AAA. In urban areas, AAA Insurance's average prices are about 4% less than Mercury Insurance.

AAA vs. Mercury Discounts

Regardless of why you might be in the market for a new car 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 insurance discounts as you can.

The hard part is finding all of the discounts you're eligible for, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

Below, we've compared all of the different discounts offered by AAA and Mercury so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

AAA knocks Mercury out of the park when it comes to the sheer number of discounts available, offering 33 different discounts to Mercury's 27.

There are a couple discounts both carriers offer, but AAA also offers AAA discounts, academic discounts, driver training discounts, and more that Mercury does not.

On the flip side, Mercury has a couple unique discounts of its own -- ABS discounts, continuous insurance discounts, DRL discounts, and more.

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Final Thoughts: Is AAA or Mercury Best for You?

You've seen the effect certain factors have on your auto insurance and the different discounts companies offer. That's all well and good, but at the end of the day, is AAA or Mercury the best fit for you?

Mercury might be best for you if....

• You've received a ticket for speeding recently and don't want to see your premiums increase.
• You live in an suburban area.
• You drive often but have a short commute.

AAA might be best for you if...

• You haven't received any speeding tickets or been in a collision in the last few years.
• You already have a great credit score.
• Your neighborhood is in a city.

We hope this guide helps you get a good idea of the differences between AAA and Mercury and that you can now make a more informed decision when it comes to your car insurance.

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

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AAA vs. Mercury FAQs

Is AAA or Mercury cheaper?

Looking just at the national average rates, Mercury is the more affordable of the two carriers, offering average rates of $295 a month compared to $314 for AAA. That being said, Mercury won't necessarily be the lowest company for everyone, since there are multiple different variables that are considered when it comes to your car insurance payment.

Who is better, AAA or Mercury?

Unfortunately, the only answer we can give you is "it depends.". No one carrier is necessarily "better" for every driver -- it all depends on what your unique insurance profile looks like. For example, AAA offers cheaper prices for policyholders with an at-fault collision on their record, while Mercury is less expensive for drivers who have less-than-stellar credit scores.

Why do AAA and Mercury offer me different rates?

Auto insurance companies take a look at several different factors when calculating the rates they charge drivers. Things like where you live, age, where your home is, gender, and sometimes even things like your credit score can all come into play. Both AAA and Mercury calculate premiums using different formulas, so each one will most likely offer different rates. The only real way to see which company is the cheapest for you is by comparing personalized quotes from a range of different carriers.

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

The only way to find the insurance carrier that's right for you is by getting quotes from a handful of companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best auto insurance carriers in your area. With those, you can guarantee you're getting the best rate. And who knows, the best company for you might not be AAA or Mercury at all!

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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.