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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

American Family vs. Mercury FAQs