Compare Mercury vs. USAA: Quotes, Discounts (2023)

Mercury vs. USAA: A Summary

If you’re a military member or veteran seeking an auto insurance policy, two auto insurance companies you may consider are Mercury and USAA. We provide information regarding what each company has to offer you depending on your insurance needs, but be sure to compare quotes from all of your insurance options with the Insurify quote-comparison tool.

ICS Score Explanation:

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

Mercury

Headquartered in Los Angeles, Mercury has been around since 1960 and sells auto, renters, and homeowners insurance in 11 states. Mercury offers liability and full-coverage insurance, roadside assistance, rideshare coverage, and rental car reimbursement. Average rates exceed the national average, but the company offers discounts including a robust telematics program.

Mercury has an A (excellent) financial strength rating from A.M. Best and has a well-rated mobile app. However, the insurance provider has some customer satisfaction concerns. In 2021, Mercury was one of the bottom-ranked midsize insurers in the J.D. Power U.S. Insurance Shopping Study and had more complaints with the NAIC than expected.

USAA

A Fortune 500 financial services company founded in 1922, USAA offers insurance, banking, investment, and retirement products. Access to USAA extends to retired and active duty military members, veterans, and eligible family members. USAA offers the cheapest rates in the industry, ample discounts, rideshare coverage, roadside assistance, and rental reimbursement.

USAA has superior financial strength ratings from multiple independent credit rating agencies. The insurer received high marks for customer satisfaction, beating out all other companies in the J.D. Power 2021 U.S. Insurance Shopping Study and the Auto Claims Satisfaction Study.

That said, USAA received slightly more NAIC complaints than expected in 2021, given its size.

The Best Car Insurance Companies in 2022

Mercury was our top pick for face-to-face service and received an Insurify Composite Score of 81. USAA is also highly ranked and is the best option for members of the military, given its low rates and high financial strength and customer satisfaction ratings.

Compare Mercury vs. USAA: Which Is Cheaper?

USAA is cheaper than Mercury for all types of drivers but eligibility is limited to those in the military community. Regardless of your age, driving history, and credit score, you’re likely to find cheaper rates at USAA if you are eligible for membership. In fact, USAA offers the best rates in the industry on average for most drivers.

The Cheapest Car Insurance Companies in 2022

While USAA is one of the cheapest insurance providers in the industry, Mercury charges average rates that exceed the national average. If you’re not a USAA member and you’re looking for cheap car insurance, GEICO and State Farm offer better average rates than Mercury. Individual rates will vary based on driving history, location, and more.

Compare Mercury vs. USAA Car Insurance by Age

Since younger drivers have less experience on the road, car insurance companies charge them higher rates to account for the added risk. For example, teens pay the highest premiums because statistics show they’re more likely to be in an accident than any other age group. Some companies offer good student discounts to help offset the high cost.

Drivers in their 50s and 60s tend to pay the lowest rates for car insurance, while prices increase slightly for elderly drivers. Find what you can expect from Mercury and USAA based on your age group, in the chart below.

USAA is cheaper than Mercury for every age group. In fact, for most age groups, USAA charges less than half of what Mercury charges. The difference is especially significant for teen drivers. USAA also beats the national average for every age group, and the only insurer to offer cheaper rates for teen drivers is Erie.

Compare Mercury vs. USAA Car Insurance by Gender

Auto insurance providers consider your gender when setting your insurance rates. Women tend to pay slightly less than men at every age, but the difference is more pronounced in younger drivers since male teens are more than twice as likely to be in a fatal crash as female teens. Here’s what you can expect from Mercury and USAA based on your gender.

Which is cheapest for men?

USAA is cheaper on average for men than Mercury. USAA charges $38 less than the national average, while Mercury’s premiums exceed the national average by $18.

Which is cheapest for women?

USAA is $62 cheaper than Mercury on average and also beats the national average by $36. Mercury, on the other hand, charges women $26 more than the national average.

Compare Mercury vs. USAA Car Insurance by Mileage

Providing your estimated annual mileage typically has a minimal effect on auto insurance rates, but some car insurance providers offer lower insurance premiums to low-mileage drivers. You can usually save more on your insurance costs if you enroll in a telematics program that tracks your actual mileage. Here’s what Mercury and USAA are charging based on estimated mileage.

Which is cheapest for drivers with high mileage?

USAA is significantly cheaper than Mercury on average for high-mileage drivers. USAA also beats the national average rate by $36. Mercury, on the other hand, charges $26 more than the national average for high-mileage drivers.

Which is cheapest for drivers with low mileage?

Both Mercury and USAA charge the same average rates to both low-mileage and high-mileage drivers. USAA is significantly cheaper than Mercury on average and beats the national average by $36.

Compare Mercury vs. USAA Car Insurance by Credit Score

In most states, auto insurers use your credit-based insurance score to determine your premium. That score is based on information in your credit report, like your outstanding debt and payment history. It’s not that insurance companies are worried about payment, like a lender would be. Instead, they’re accounting for risk.

That’s because several studies have found a link between poor credit and high claims-filing. As a result, people with poor credit generally pay more for car insurance coverage. In some states, such as California, setting rates based on credit score is prohibited. But in general, here’s what you can expect to pay at Mercury and USAA based on your credit tier.

Which is cheapest for good credit?

USAA is cheaper than Mercury for drivers with good and excellent credit. USAA is lower than the national average by $24, while Mercury exceeds the national average by an average of $19. Drivers with excellent credit can also find cheap rates from insurance providers like State Farm and Erie.

Which is cheapest for bad credit?

USAA is cheaper than Mercury for drivers with bad credit. USAA is lower than the national average for those with average credit by $36 and $55 lower than the national average for those with poor credit. Meanwhile, Mercury is $20 more expensive than the national average for poor credit individuals. Drivers with poor credit can also find generous rates from GEICO.

Compare Mercury vs. USAA Car Insurance by Driving Record

Car insurance providers look at your driving history to estimate the likelihood you’ll file a claim in the future. If you have violations like speeding tickets on your record, they’re going to charge you higher rates. Sometimes, driver’s education courses, defensive driving courses, and safe driving telematics programs can earn you a discount to offset the price hike.

Here’s what you can expect to pay for a car insurance policy at Mercury and USAA based on the infractions on your driving record.

Which is cheapest for good drivers?

USAA offers the lowest rates in the industry for good drivers, charging $62 less than Mercury and $36 less than the national average. Mercury, on the other hand, costs $26 more than the national average.

Which is cheapest after a speeding ticket?

USAA charges less than half of what Mercury charges drivers with speeding tickets and also beats the national average rate by $53. Mercury charges $25 more than the national average.

Which is cheapest after an accident?

USAA’s rates for drivers who have caused crashes are over $100 less than Mercury’s rates. USAA average rates are lower than the national average by $53, while Mercury charges $51 more than the national average rate.

Which is cheapest after a DUI?

Considering the severity of the offense, Mercury’s rates for DUI drivers are generous, beating the national average by $13. USAA’s rates for DUI drivers are still significantly cheaper, however, with averages lower than the national average by $71. Drivers with a past DUI can also find cheap rates from State Farm and Erie.

Mercury vs. USAA Car Insurance: What discounts does each offer?

Mercury Discounts

• Defensive driver

• Good driver

• Accident-free

• Claims-free

• Association

• Education

• Occupation

• Distant student

• Good student

• Mature driver

• Minor child

• Advance quote

• Annual two-pay

• Autopay

• Continuous insurance

• E-signature

• Good payer

• Full pay

• Safety features (anti-theft device, antilock brakes, etc.)

• Usage-based

• Multi-policy

• Multi-vehicle

Note that available discounts may vary by state. Ask your Mercury insurance agent for more details.

USAA Discounts

• Good student

• Good driver

• Military garage

• Stored vehicle

• Defensive driver

• Driver training

• Usage-based

• Multi-policy

• Multi-vehicle

• New car

• Anti-theft

• Low mileage

• Loyalty

Our Methodology and How We Compared Mercury and USAA

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.