Mercury and USAA are two insurance companies that offer quality coverage at competitive rates. Mercury is a regional insurance company that sells coverage to drivers in 11 states, while USAA offers auto and home insurance in all 50 states and Washington, D.C.
Choosing the right insurance policy is essential to maximizing protection for your vehicle without paying more than you need to. When shopping for an insurer, it’s a good idea to compare average rates, customer service ratings, discounts, add-ons, and policy options from multiple auto insurers.
Here’s what you need to know about coverage offerings from Mercury and USAA.
Overall, USAA is a better match for active and retired military members and their families. Mercury doesn’t offer military discounts, has higher rates on average, and sells coverage in only 11 states. USAA has coverage offerings in all 50 states.
Civilian drivers who live in one of the 11 states where Mercury offers protection may benefit from Mercury’s relatively low car insurance rates and wide range of discount options. Though Mercury doesn’t sell coverage nationwide, it’s a large company recognized for excellence in customer satisfaction and employment.
Mercury Insurance has 0.89% of the private passenger auto insurance market share, making it the 16th-largest U.S. auto insurer.1 It has an AM Best Financial Strength rating of A (Excellent) and the Digital Experience Study Award from J.D. Power.
USAA is a member-owned company that’s been selling insurance for more than 100 years. USAA is the fifth-largest personal auto insurer, with 6.27% of the market share, according to the National Association of Insurance Commissioners.
Both USAA and Mercury offer safe driving programs that can help you save money.
You can earn an immediate 5% participation discount by signing up for MercuryGO. Teen drivers can earn up to 10% off upon enrollment. You can also qualify for up to 40% more off your premium, depending on your driving habits. MercuryGO uses a mobile app to monitor driving behaviors and habits. It also gives real-time feedback with tips for better driving habits.2
USAA SafePilot has an enrollment discount of 10%, but you can save up to 30% for safe driving habits. You’ll need to install the USAA SafePilot App and allow it to monitor your driving habits and behaviors. You don’t need to open the app; it runs in the background automatically. When your renewal date hits, USAA will show your discount and reset your driving score.3
Overall, USAA auto insurance has cheaper rates for all driver categories. Though USAA is clearly the cheaper car insurance company, you should consider numerous factors when looking for your best option, including whether the company sells coverage in your state. It’s a good idea to also consider discount availability, coverage options, and insurance requirements in your state.
If your driving history doesn’t include a past car accident or speeding ticket, you’ll pay the lowest rates by driving record. USAA has slightly cheaper liability insurance rates for people with a clean driving record.
Having a past speeding ticket on your record indicates a higher level of risk to your insurance company. You’ll likely pay higher rates if you have one or more tickets on your record. Between the two companies, USAA has the cheaper rates for liability insurance for drivers with a past ticket.
Teenagers face high rates due to their lack of driving experience and a higher likelihood of having an accident. Young drivers can find lower rates for liability insurance with USAA.
Senior drivers can find cheaper liability insurance policies from USAA than Mercury. Compare average quotes from both companies below.
USAA offers lower rates than Mercury for drivers with bad credit. Generally, auto insurance companies charge higher rates for drivers with poor credit.
Mercury and USAA both offer all the standard coverage options, including property damage and bodily injury liability, personal injury protection, uninsured and underinsured motorist coverage, collision coverage, and comprehensive coverage.
The primary difference between the companies’ coverage offerings is who qualifies for coverage with the company. While USAA offers insurance products in all 50 states and Washington, D.C., only members of the military community qualify for coverage. Mercury doesn’t limit its customer base to military personnel, but it only sells coverage in 11 states.
The companies have insurance add-ons that vary slightly. For example, Mercury has gap insurance, and USAA sells car replacement assistance coverage. Add-on availability may vary by state. Compare several offerings below.
USAA and Mercury both offer a fair number of discount options, including a good student discount and savings for bundling multiple insurance policies, like auto with homeowners or renters insurance.
Military members are likely to save more on coverage with USAA, as Mercury offers no military discount. But Mercury does provide some unique discounts, including discounts for using e-documents and a discount for paying your premium in full twice per year instead of in monthly installments.
Here are several discount offerings from Mercury and USAA.
To decide on the right insurer for your needs, you should consider your budget, the cost of coverage, your driving record, and more. Learn more about coverage from Mercury and USAA below.
USAA competes with some of the biggest names in the insurance industry, including State Farm, Progressive, GEICO, and Allstate. USAA is the only major insurance company that exclusively serves military members and their families, so any meaningful competitor will need to offer a military discount.
USAA offers affordable rates and may offer the lowest rates for customers who qualify for coverage, including active-duty military members, veterans, and their families. But comparing rates, coverage options, and discounts between multiple companies is important for finding the best policy for your needs.
Yes. Mercury has an AM Best financial strength rating of A (Excellent). This indicates that the company has good credit and assets available to pay claims. But Mercury has received some negative customer reviews regarding claims on its Better Business Bureau profile.
The best insurance for you is the coverage that meets your needs and budget. The best way to find the right fit is to compare average premiums, auto insurance policy options, and discounts from different companies, including Mercury and USAA. This will help you identify which company best matches your needs.
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