According to its slogan, Mercury offers a “smarter way to save,” but does it offer a smarter way to insure our cars? Many Mercury insurance reviews have tried to answer that question but got lost in numerous “Cheapskates Family” commercials. Our review team isn’t easily distracted by funny ads, so we were able to conduct an in-depth analysis of the company’s portfolio of services.
The Mercury insurance group was founded in 1961 and is headquartered in Los Angeles, California. The company sells homeowners, auto, renters, commercial, and many other types of insurance. The company markets itself as a budget-friendly solution, and has a series of funny “cheapskate” commercials.
These commercials certainly make customers expect low prices. But are the low Mercury insurance quotes its only advantage? We have examined and compared experts’ ratings, customers’ comments, and our own data to find out. Check out the rest of this review to see if Mercury might be the right choice for your car insurance.
Mercury Auto Insurance Review
Mercury is among the most affordable insurers in the market. However, its customer service is subpar, and the company offers only a small number of discounts and optional coverages. With this in mind, it’s too flawed to recommend.
- Cheap rates
- Mechanical Protection Plan
- Only a few extra coverage options
- Higher rates for homeowners
- Bad customer service
- Basic discounts
Mercury Auto Insurance: Product Overview
Mercury operates in 11 states. They are: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. The company has the biggest presence in the state of California.
They employ a total of 4,500 workers and more than 8,000 independent agents. These agents do not have to recommend any specific insurance company.
While you can apply for a Mercury insurance quote online, the policy will be finalized through an insurance agent via phone. The company also has a solid mobile app. You can pay bills, view policy information, download documents, contact your agent, track your claim status and much more.
Our research confirms that their rates are less expensive than average, making Mercury a solid choice for those on a tight budget. On the other hand, its customer service is not among the best in the market. Furthermore, the coverage options and discounts offered are generally quite basic.
However, the company does offer some unique and useful coverage options, like Mechanical Protection.
Mercury Car Insurance Signature Feature – Mechanical Protection
Mercury Mechanical Protection functions as an extended warranty for pre-owned and newer vehicles. It covers the cost of repairs and parts in case your vehicle breaks down.
You can choose one of several plans. The Platinum Plan is the most expensive and covers almost all the possible vehicle components. This type of insurance is usually cheaper than the extended warranty sold by car dealers and includes some nice perks. Some of them are:
- 24-hour Mercury insurance towing and roadside assistance,
- Trip interruption coverage,
- Rental car assistance,
- Road hazard tire protection, and
- Mercury’s Nationwide Protection.
The last option enables you to complete the repairs in any licensed repair facility in the US. This transferable coverage doesn’t cover routine services or items such as vehicle moldings and trims. We certainly like Mercury Mechanical Protection, and we wish more insurance companies would offer similar options.
Mercury Review: Financial Strength
Reasonable prices and interesting optional coverages are not sufficient enough to make a specific insurance brand a good choice. The company needs to be financially stable and capable of paying their claims.
There should be no worry here since Mercury has a rating from A. M. Best of A+ or Superior, which is the second-best rating possible. Additionally, the company ranks 638th in the Fortune 500 list.
Overall, an average customer can rest assured that Mercury has stable financial operations.
Types of Insurance Offered
We agree with some Mercury insurance reviews that the company’s selection of optional coverages could be better. Namely, the first thing that we noticed is that the company doesn’t have gap coverage in its portfolio.
But, people who are not looking for additional coverage will be happy because the traditional options are there:
- Property damage liability,
- Bodily injury liability,
- Medical expenses,
- Personal injury protection, and
- Underinsured/uninsured motorist protection.
As we’ve mentioned before, Mercury doesn’t offer many optional coverages. Still, they are useful, and not many of its competitors have them. For instance, besides the mechanical coverage we’ve described earlier, it also offers:
Mercury rideshare insurance
This option is available only in selected states. That means you will have to speak with an agent to see if this coverage is available in your area.
Ride-Sharing coverage expands the protection offered by companies such as Uber and Lyft. It provides coverage when you are connected to the app and waiting to be matched with a passenger. The price of this coverage can be as low as $0.20 per day..
Rental Car Reimbursement
While you are waiting for your damaged vehicle to be repaired, Mercury will pay for the car you are renting to get around. If you are renting a car on a regular basis, it’s worth checking rental car insurance.
Mercury Insurance Roadside Assistance
This is a charged add-on that covers the expenses of 24/7 roadside assistance in case you get stuck on the side of the road. The benefits include towing, flat tire changes, battery jump starts, emergency fuel and fluid delivery, and locksmith services. Keep in mind that this option covers the services only and does not cover the parts replaced or the fuel delivered.
Mercury Insurance Customer Service
When it comes to customer service, the company does not offer the finest experience available. In J.D. Power’s 2021 regional study for California, where Mercury writes most of its policies, the company got just an average score. Wawanesa and American Family are better choices in this region if you are looking for excellent customer service.
However, there are some areas where Mercury Insurance rises above average. For instance, it won the J.D. Power award for highest customer satisfaction for digital insurance shopping in 2021. The award says a lot because the ruling was based on Mercury car insurance reviews from former and current clients.
Additionally, Forbes recognizes Mercury Insurance as one of the best insurance companies in the US for 2022.
Mercury is also solid when it comes to complaints. It’s NAIC Ratio, which indicates how many complaints the company receives relative to its size, is 0.84. This is slightly better than the average. However, many of the insurance companies we tested have an even lower ratio.
On the Better Business Bureau, Mercury has a rating of B-. This is a website that rates how ethically a company conducts its business,
What may ruin the solid impression the company has made is the number of bad Mercury insurance reviews on websites like Yelp. The customers mostly complain about the claim process. The second most common complaint is that the company often increases rates.
However, this is common for the industry. Even highly rated companies like Erie have a lot of negative reviews on these websites. This is simply because a customer is always more likely to leave a review if they have a negative experience.
Mercury Insurance Discounts
Similar to its optional coverage, Mercury does not offer as many discounts as the competition. However, there are still some useful options that can bring their clients’ premiums down.
Unfortunately, the company does not list the percentages on their website. That means you will have to contact an agent to tell you how much exactly they would reduce your price. The other option is requesting a Mercury auto insurance quote online. Keep in mind that not all discounts are available in all states.
The options offered by Mercury are the following:
Anti-Theft Feature Discount – If your vehicle is equipped with theft prevention devices, you can get a discount.
Good Driver Discount – If you are a driver with a good record, a discount is available.
Autopay Discount – If you set things up to make an automatic Mercury insurance payment, a discount is available.
E-Signature Discount – If you decide to handle your insurance documents online, your wallet and the planet will both thank you.
Good Student Discount – If you have a student on your insurance policy with a GPA of B or higher, a discount is available.
Multi-Car Discount – You can get a discount if you insure multiple vehicles.
RealDrive ® Discount – This discount is basically a low usage discount under a different name. Mercury insurance claims that just by signing up for this program, you will get a 5% discount. Then, based on how many miles you cover, you can get a higher discount.
Occupational Discount – If you are an educator, engineer, or scientist, you can get a discount. Same applies if you are a member of the California Medical Association. However, you should verify this with your local insurance agent.
Multi-Policy Discount – Great option if you are also purchasing homeowners, condo, or renters insurance.
Pay in Full Discount – If you decide on Mercury insurance and pay the bill in full at the start of the term, a discount is available.
About Insurance Rates
Our insurance rate comparison shows that the prices offered by Mercury are indeed below average, but they still aren’t the lowest available. In our analysis, both Geico and Amica Mutual had better rates. Furthermore, those companies also scored significantly higher in customer service.
It should be noted that the initial rates are only half the story. When it comes to your final premium price, the discounts are the other half. To find out the prices, we got a Mercury car insurance quote for three different age categories. We found that for all three categories Mercury was below the total average of all the insurance companies we tested.
Mercury vs. Allstate
In our analysis, Mercury comes in as a slightly cheaper option than Allstate for everyone except middle-aged drivers. When it comes to customer service, both companies are rated average in the J.D. Power customer satisfaction study.
Allstate also offers more options for safe drivers, as well as guaranteed claims satisfaction, something that the auto insurance reviews praise highly. Guaranteed claims satisfaction means that you will get a refund if you are not pleased with the way your claim was handled.
On the other hand, Mercury insurance app is better. The company also offers Mechanical Coverage, which may be important to some car owners.
Mercury vs. State Farm
State Farm comes in as a more expensive option than Mercury, especially for younger drivers. We found that for a 21-year-old driver, State Farm costs $150 more per month than Mercury.
When it comes to customer service, State Farm is rated above average or near the top in all regions. Mercury, however, is rated only about average in the J.D. Power auto insurance study. On the other hand, Mercury insurance reviews on BBB are slightly better (1.26 and 1.21 stars out of 5).
When it comes to discounts and optional coverage, neither of these companies really excel. This means that the decision comes down to the better prices offered by Mercury or the better customer service offered by State Farm.
Mercury vs. Travelers Insurance
Mercury and Travelers aim for different market groups. Namely, Travelers is significantly cheaper for younger drivers, and Mercury is less expensive for older drivers. Mercury insurance ratings in the J.D. Power Auto insurance study are slightly better. Even though it is rated as average, that’s still better than Travelers, which scores below average in almost every region.
If you like variety when it comes to discounts and optional coverage, Travelers should be your choice. But if you are specifically interested in Mechanical Protection or if you’re an older driver, choose Mercury.
There are many excellent alternatives to Mercury. Those looking for the best customer service should check Erie, Amica Mutual, or Auto-Owners insurance. Furthermore, people shopping in the California region should also check Ameriprise and Wawanesa insurance.
Those working on a tight budget should check out Progressive and Geico. They offer very competitive prices and dependable customer service.
Many people have a Geico vs Mercury dilemma because they both offer occupational discounts. The best way to find out what discounts you are eligible for is to contact an agent.
Keep in mind that the rates, as well as any additional coverage, may vary from state to state. Furthermore, insurance reviews can only help you to narrow down your choice to a few companies. Requesting quotes from different insurance companies is still the best way to find what you need.
Expert Thoughts – Summary of Mercury Car Insurance Reviews
The advantages of Mercury per this review were its low costs for younger drivers and its Mechanical Protection coverage, while the disadvantages were the slow claims payments and higher prices for homeowners insurance.
Overall customer satisfaction is average, and shopping experience and claim handling didn’t earn much higher grades either. On the other hand, Mercury won the J.D. Power Award for the best digital shopping experience. So, if you are willing to trade customer service for good online tools and low prices, Mercury is a good choice.
People Also Ask
Is Mercury a good insurance?
Mercury is decent car insurance. Like any company out there, it has its pros and cons. It offers competitive rates, unique features like Mechanical Protection Coverage, and an extensive network of agents. It falls behind when it comes to customer service quality and the number of available discounts. Although the final price depends on many different conditions, this is a good option for people on a budget.
Is Mercury Insurance better than Geico?
Both companies have similar A.M.Best ratings but differ in size. While Geico has 13% of the market, Mercury holds just under 1%. Geico is present in the entire US, while Mercury operates in just 11 states. When it comes to prices, they differ a lot between driver categories. However, we can say that, in general, Mercury is better for drivers with poor credit.
Who is Mercury Insurance owned by?
Mercury insurance is a company owned by its stakeholders. It’s listed on the NY Stock exchange, and anyone can buy its shares. It was founded in 1961 by George Joseph and is headquartered in Los Angeles. The company employs more than 4,500 people and cooperates with 8,000 independent agents. The company acquired Auto Insurance Specialists (AIS) in 2009 and Workmen’s Auto Insurance Company in 2015.
Where is Mercury auto insurance available?
Mercury offers car insurance in 11 states. They are: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. It has more than 4,500 employees and cooperates with 8,000 independent agents. Despite the limited area it covers, it still manages to hold almost 1% of the car insurance market. The company is expanding quickly, and we can soon expect more states to be covered.
Why is Mercury insurance so cheap?
Mercury Insurance is very affordable compared to competitors. It’s the company’s policy to go with lower prices in order to increase its market share. But there is a catch – the company has a limited number of discounts available. That means that the final price you’ll end up paying will most likely be pretty close to the quote you’ve received the first time.
What is the rating of Mercury Insurance?
Mercury Insurance company has A+ or Superior rating from A. M. Best, and that is the second-best rating possible. It indicates that the company is financially solid and capable of handling and paying claims made by its clients. Mercury also has an A+ rating from BBB and A2 from Moody’s. These ratings, our own research, and many other Mercury insurance reviews all confirm that this is a trustworthy company.