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

Quick Facts

• Looking at the national averages for car insurance, Allstate offers significantly more affordable prices than Mercury
• Allstate has cheaper premiums for policyholders who live in rural neighborhoods
• Allstate offers less expensive average rates for policyholders who are looking to purchase insurance with a spouse

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

So, you're considering switching to 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 Allstate or Mercury as potential options, but between the two, which carrier will save you the most?

Looking at nationwide averages, Mercury has average rates that are around 35% a month more expensive than those from Allstate.

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

Luckily, we've broken down average rates from both Allstate and Mercury by several different rate factors, so read on to find out which carrier is the best for you.

Allstate vs. Mercury: Average Car Insurance Rates by State

Allstate and Mercury compete against each other in 10 states, with Mercury offering less expensive premiums to the average driver in all but four of them. If you live in Arizona, California, Illinois, or Nevada, Mercury is the cheaper of the two companies when looking at the overall average prices, but Allstate is the cheaper option in most of the others.

There are plenty of other factors that go into your insurance payment than just the state you live in. Keep reading to learn more.

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Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for car insurance compared to older drivers. The reason is that teen 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 teen drivers can't still save money on their auto insurance. As you can see above, teens who use Allstate save almost 40% per month compared to those who use Mercury.

Even so, both carriers will decrease premiums by the time you turn 25. For example, average prices for Allstate policyholders drop nearly 65% and Mercury's rates lower almost 70% over that time.

Which is the Best Company for Retired Drivers?

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

When looking at Allstate and Mercury specifically, which company is best for retired drivers? Allstate gets the edge, with rates for drivers 65 and older $67 less expensive than the national average for Mercury.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance premiums tend to be cheaper for married couples than they are for single policyholders. That's generally because married drivers tend to own and insure multiple vehicles, which can often earn you a discount.

For single drivers, the difference in average rates between these two companies is significant, with Allstate prices coming in at a third less than Mercury's. For married policyholders, the advantage is clear again - Allstate has the edge when it comes to average premiums.

Allstate or Mercury: Average Rates by Gender

You may not know, but men usually pay more for auto insurance than women do. That's because men are more likely to get into collisions and get speeding tickets, which raises the chances of filing a claim with insurance.

Typically, women see prices about 4% a month less with Allstate, and around 5% less with Mercury.

Looking at the data for each carrier specifically, Allstate offers the lowest average rates for both men and women. On average, male drivers save about $99 per month and women save about $94 with Allstate compared to the average Mercury policyholder.

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Allstate 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.

Insurance isn't the easiest topic to understand. There are so many different limits and terms that it can make it pretty confusing to find the right policy for you.

But most policies end up falling into two different types of coverage -- liability coverage (which covers the other party's injuries and property damage if you cause a collision) and full coverage (which generally refers to having collision and comprehensive coverages in addition to what you get with liability coverage).

Looking specifically at state minimum liability insurance, Allstate has the significant edge, with average monthly prices coming in at $108. If you want a full coverage policy with the same state minimum limits, Allstate again has the edge, with policies averaging around $289 a month to Mercury's $406.

Is Allstate or Mercury Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance carriers offering great rates 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 accidents and speeding tickets lead to higher premiums, but which company -- Allstate or Mercury -- has the most affordable prices for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Allstate for their insurance can normally expect their monthly bill to go up about 15% after getting a speeding ticket. Mercury policyholders can expect a bit more drastic of an increase of around 19%.

Even so, Allstate tends to offer the best prices for both drivers who have clean records and those with a recent ticket. With Allstate, drivers with a clean record can save about $81 per month and drivers with a speeding ticket can save around $111 a month.

Which Company is Best for Drivers After an Accident?

Allstate drivers who get in an accident can expect to see their premiums rise by over 30%, while those who have insurance through Mercury will see about a 30% increase.

At the end of the day, drivers who use Allstate end up with the cheaper prices after an accident, with average rates coming in at $229 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 collision or ticket when it comes to your car insurance bill. For example, Allstate increases average premiums by more than $70 per month -- that's more than a 30% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Allstate tends to be more affordable for the average driver, with monthly premiums coming in at around $227 to Mercury's $303.

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How does Credit Score Impact Allstate and Mercury Rates?

Did you know many auto insurance companies take into account your credit score when determining rates? This isn't true for everyone (for example, California and Massachusetts are two states that ban the practice entirely), but it will come into play for lots of policyholders.

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 premiums for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Allstate will typically reward you the most. For policyholders with "excellent" credit scores, Allstate comes in nearly 34.98 less expensive. Drivers with "good" credit scores usually save about 35% with Allstate compared to average rates from Mercury.

Which Company is Best for Drivers with Bad Credit?

Allstate typically offers lower prices than Mercury when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around 33% a month less with Allstate compared to Mercury, and those with "poor" scores typically save an average of about 32% monthly.

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Is Allstate 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 how much auto insurance companies will charge for coverage. Generally, the more milage you put on your car each year, the more you can expect to pay for car insurance.

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 Allstate, with policyholders who drive 6,000 miles annually paying around $3 less each month compared to those who drive 12,000 miles every year. Still, for drivers in both categories, Allstate is the more affordable company.

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

Where you call home can have a pretty big impact on your monthly auto insurance cost. Normally, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

Allstate boasts the most affordable average rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

If you live in a rural area, you can expect to pay about $174 per month with Allstate and $209 with Mercury. Drivers in suburban ZIP codes pay a monthly price of around $199 with Allstate compared to $275 with Mercury. For drivers in urban ZIP codes, Allstate's average prices are about $222 per month compared to Mercury's $401.

Allstate vs. Mercury Discounts

No matter 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 you can, and the best way to do that is by taking advantage of 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 difficult to find all the ones you qualify for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both Allstate and Mercury so that you can find the one that has the most discounts and, therefore, the largest savings.

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

Both carriers offer quite a few of the same discounts -- like advance quote discounts, COVID-19 relief discount, discounts for being a defensive driver, and discounts for being a good driver -- but Allstate also offers discounts for agency transfer, alert driving, annual mileage, and more.

On the other hand, Mercury has a few proprietary discounts of their own for things like continuous insurance discounts, e-signature discounts, electric vehicle discounts, and more.

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Final Thoughts: Is Allstate or Mercury Best for You?

So, you've seen how different variables can affect your car insurance rates. We've broken down the different discounts each carrier offers, too. That's all well and good, but at the end of the day, which company is the best company for you and your specific needs?

Allstate might be best for you if....

• Your driving record includes a DUI charge.
• You already have a great credit score.
• 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 Allstate and Mercury and that it aids in making a more informed decision about 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 multiple companies, not just Allstate 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 the top insurance carriers in your area, all in just a few minutes.

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Allstate vs. Mercury FAQs

Is Allstate or Mercury cheaper?

Allstate is the cheaper of the two companies when looking at national average premiums, with policies averaging $199 a month with Allstate and $295 for Mercury. However, that doesn't mean Allstate will be the cheapest carrier for each driver, since there are a variety of different factors that come into play when it comes to your car insurance bill.

Who is better, Allstate or Mercury?

Sadly, the real answer is "it depends.". Neither company is "better" for every policyholder -- it all depends on what your unique auto insurance profile looks like.

Why do Allstate and Mercury offer me different rates?

Insurance carriers use quite a few different variables when calculating the prices they charge. Factors such as age, your driving record, gender, where you park your vehicle, and sometimes even things like your credit score can all be taken into consideration. Both Allstate and Mercury calculate premiums differently, so it's likely they'll offer different prices. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from a range of different companies.

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

The only way to find the auto insurance company that's right for you is by getting quotes from several 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 ZIP code and you'll get quotes from dozens of your local top insurance companies for free. With those, you can guarantee you're getting the best premium. And maybe you'll find that the best carrier for you isn't Allstate or Mercury at all, but another you hadn't even thought of!

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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.