American Family vs. Mercury: Which Is the Best? (2025)
American Family’s low rates and additional add-ons earn it a higher IQ Score of 9.3.
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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 Score | 9.3 | 7.5 |
| Customer satisfaction score | 3.5 | 3.4 |
| Average quote: liability only | $79 | $95 |
| Number of discounts | 18 | 8 |
| Number of states where it operates | 19 | 11 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 55,000 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.[?]
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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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.[?]
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 | $79 | $95 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | $103 | $146 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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.[?] American Family offers lower rates for teen drivers with limited experience on the road.
Driver Type | American Family | Mercury |
|---|---|---|
| 18-year-old | $154 | $181 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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.[?] 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 | $59 | $72 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | $90 | $119 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | Yes | Yes |
| Accidental death and dismemberment | Yes | No |
| Accident forgiveness | Yes | No |
| Rental car reimbursement | Yes | Yes |
| Ride-hailing | Yes | Yes |
| Gap insurance | Yes | Yes |
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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 record | Yes | Yes |
| Defensive driving course | Yes (in some states) | No |
| Multi-policy | Yes | Yes |
| Multi-car | Yes | Yes |
| Low mileage | Yes | Yes |
| Telematics (safe driving app) | Yes | Yes |
| Anti-theft device | No | Yes |
| New car | No | No |
| Military/affiliation | No | No |
| Good student | Yes | Yes |
| Loyalty | Yes | No |
| Auto-pay | Yes | Yes |
| Student away at school | Yes | No |
| Homeowner | Yes | Yes |
| Alternative fuel | No | No |
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.
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