Mercury Insurance Review: Great Rates For Drivers, Not So Much For Homeowners

Mercury Insurance Review: Great Rates For Drivers, Not So Much For Homeowners

Mercury Insurance boasts some of the best rates for auto insurance, but its homeowners insurance policies offer high premiums and limited discounts.
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Editor's Rating

3.0/5.0

Good for

  • Young drivers who are looking for a low-cost auto insurance company
  • Anyone who is looking for mechanical breakdown insurance

Bad for

  • Anyone who is looking for an insurance company with a track record of paying customer claims quickly
  • Homeowners searching for the lowest cost coverage
  • Homeowners looking for an online quote

Drivers will find that Mercury has some of the most affordable auto insurance rates, making it a great choice for price-conscious drivers. On the other hand, the company’s homeowners insurance policies are plagued by high premiums and a lack of discounts. Drivers who value friendly customer service over low auto insurance rates should keep searching, as Mercury has mixed reviews. However, if you’re willing to make the sacrifice, it’s unlikely that you’ll find another insurance company with such low auto insurance premiums.

Mercury Insurance: Great For Auto, But Homeowners Should Keep Searching

Mercury’s strongest attribute is its highly competitive auto insurance rates. In fact, even young drivers will find that Mercury offers affordable quotes. In exchange for Mercury’s low rates, you’ll be subject to spotty customer service, meaning that your experience when submitting a claim can range from pleasant to awful. Drivers that are comfortable with the trade-off will be rewarded with some of the best auto insurance prices. Unfortunately, Mercury currently only offers coverage to drivers in 11 states:

  • Arizona
  • California
  • Florida
  • Georgia
  • Illinois
  • New Jersey
  • Nevada
  • New York
  • Oklahoma
  • Texas
  • Virginia

In stark contrast to its auto insurance policies, Mercury’s homeowners insurance policies don’t have any redeeming attributes. Not only will you be subject to the same erratic customer service, but you’ll have little to show for it. Mercury’s rates are some of the highest across multiple policy limits. Furthermore, shopping for coverage can be frustrating for tech-savvy individuals, as Mercury doesn’t offer online homeowners insurance quotes. That said, Mercury does offer its policyholders a free mobile app to perform basic functions such as viewing their policies, making payments and requesting roadside assistance.

Auto Insurance Takeaway: Mercury’s auto insurance policies don’t provide customers with the longest list of discounts, but they do offer basic coverage at quotes that are hard to beat. Drivers who are focused on price more than anything else will have a tough time finding another insurance company that can match Mercury’s rates.

Home Insurance Takeaway: Simply put, there is little that Mercury offers its homeowners insurance policyholders that they can’t get elsewhere at a better price. Whether you’re searching for lower rates, better discounts or a longer list of endorsements, you’d be better off with a different homeowners insurance company.

Mercury Auto Insurance Coverage

Mercury’s auto insurance policyholders will find that the company offers a small number of optional coverages when compared to other insurance companies. Furthermore, the actual coverage available to you will depend on the state you live in, which further restricts your options. However, the Mercury Mechanical Protection add-on is an optional coverage that not many other companies offer.

Mercury Mechanical Protection: This optional add-on functions as an extended warranty on your car. Mercury Mechanical Protection includes coverage for major failures that can occur to your vehicle, like transmission problems. Mercury Mechanical Protection offers several coverage levels for new and used vehicles, up to seven years or 100,000 miles, whichever comes first. The coverage can save drivers who recently purchased a new vehicle thousands of dollars if their car needs repairs shortly after the manufacturer’s warranty expires. There is no limit to the number of claims that you make. Mercury Mechanical Protection also grants customers access to several additional benefits at no extra cost:

  • 24-hour roadside assistance
  • Rental vehicle assistance
  • Road hazard tire protection
  • Trip interruption coverage

Rental Car Coverage: Rental car coverage reimburses a driver for the cost of a rental vehicle if their car is involved in a covered accident. Mercury offers several coverage limits, with the lower end beginning at $30 per day and the higher end being $100 per day for a maximum of 30 days. You can expect to pay around $22 per year for the lower end of coverage and $75 per year for the higher end. The prices are in line with what other insurance companies charge for similar coverage.

Roadside Assistance: If you frequently find yourself stranded on the road, consider adding roadside assistance to your auto policy. The service provides you with towing, a battery recharge, tire changes and help with locked doors. Mercury’s roadside assistance gives customers the option to select coverage ranging from $75 to $1,000 per occurrence. To request roadside assistance, Mercury’s customers can dial 800-503-3724.

Traditional Coverage Available Through Mercury

  • Liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Medical payments coverage
  • Personal injury protection
  • Uninsured and underinsured motorist coverage

Mercury Auto Insurance Discounts

Mercury doesn’t have the longest list of discounts and, much like its optional coverage options, availability will depend upon the state in which you reside. While the discounts are typical of what other insurance companies offer, Mercury does offer ways to save on what are already some of the best auto insurance rates.

DiscountHow Do You Receive It?
HomeownerReceive a discount if you own your home, even if it’s not insured with Mercury.
E-signaturePurchase an auto insurance policy online and finalize coverage with a digital signature.
Multicar discountInsure multiple vehicles with Mercury Insurance.
Multipolicy discountGet a discount for having multiple insurance policies with Mercury, such as auto and homeowners.
Anti-theft discountReceive a discount for equipping your vehicle with an anti-theft device, such as an alarm system.
Good student discountReceive this discount if you have a student on your insurance policy who maintains grades a certain level.

Mercury Auto Insurance Rates

Whether you’re a new driver or one who has been on the road for decades, you’ll find that Mercury offers some of the best rates. In fact, across all of our sample driver profiles, Mercury provided lower-priced quotes than its competitors’ average. We found the largest discrepancy to be for young drivers, where Mercury was approximately $341 cheaper per year when compared to the mean of the quotes offered by State Farm, Farmers and Safeco. Despite our findings, you should compare your quote to the average rate in your state to see if you’re receiving a fair deal.

Mercury Car Insurance Quotes

Mercury Home Insurance Coverage

The endorsement options that an insurance company offers are important because they offer you a way to customize your policy. Endorsements can save you from having to switch homeowners insurance companies in the event that you need broader coverage for certain things. Unfortunately, Mercury offers its customers access to a limited number of endorsements.

Extended Replacement Cost: The extended replacement cost endorsement provides policyholders with an additional 50% of coverage in excess of their dwelling coverage. The endorsement is meant to protect homeowners against the sudden rise in the cost of materials or labor that can occur when a lot of homes are damaged in the same area. While other insurance companies often offer extended replacement cost, most other endorsements give you 25% of additional coverage. With Mercury, if your dwelling limit is $100,000, you would receive $150,000 of coverage.

Additional Living Expenses: If your home is damaged and uninhabitable due to damage stemming from a covered loss, this endorsement provides reimbursement for things like the cost of a hotel and food.

Service Line Protection: This endorsement provides homeowners with $10,000 of coverage for damage to exterior and underground service lines. If a break to any of these lines occurs on your property, you could be held responsbile for repairs, meaning that this endorsement could save you thousands of dollars. It’s not an add-on that is commonly found among home insurance companies. Service line protection provides coverage for the following:

  • Water piping that connects your home to a public water supply
  • Sewer piping that connects your home to a public sewer
  • Ground loop piping
  • Piping that provides heating (e.g. natural gas, propane, etc.)
  • Piping that supplies compressed air
  • Power lines

Identity Theft Protection: The identity theft protection endorsement provides policyholders up to $25,000 in coverage for expenses that they incur as a result of identity theft. Mercury partners with CyberScout to provide policyholders with identity protection services. CyberScout has fraud specialists who can advise you and assist you by placing fraud alerts and calling creditors. The endorsement allows you to seek reimbursement for any of the following:

  • Lost income
  • Notaries
  • Attorney fees
  • Mailing costs
  • Loan application fees

Additional Coverage For Valuables: High-value items, like sports memorabilia and jewelry, are typically covered by a standard homeowners policy to a limit, but these items’ value can exceed the coverage limit of a standard policy fairly easily. Therefore, if you own any items worth more than $1,500, or several items worth a few hundred dollars, it would benefit you to add this endorsement your policy. The endorsement will provide you with a higher coverage limit for your valuable items.

What Does a Mercury Homeowners Insurance Policy Cover?Details
Your dwellingProvides coverage for the cost to repair or rebuild your home if the damage was caused by a covered loss.
Your personal propertyProvides coverage for personal items that are damaged in the event of a covered loss.
Personal liabilityPays for bodily injury or property damage caused to others if it’s caused by a covered incident.
Additional living expensesReimburses you for expenses incurred when living away from home due to a covered loss.

Mercury Home Insurance Discounts

Mercury offers an unusually low number of discounts to its policyholders. However, local agents may be able to find you more discounts based on your state of residence. While it’s not technically a discount, Mercury’s policyholders can also lower their insurance rates by selecting a higher deductible.

DiscountHow Do You Receive It?
Multipolicy discountSave when you bundle your home and auto insurance policies with Mercury.
Fire-resistant construction materialsReceive this discount if your home is constructed with materials that are deemed to be fire-resistant.
Gated communityYou’re eligible for a discount if your home is located within a gated community.
Protective device discountQualify for this discount if you have smoke alarms, deadbolts or burglar alarms installed in your home.
Newer homeReceive a discount if the home you’re looking to obtain insurance coverage for is new.

Mercury Home Insurance Rates

Overall, Mercury offers high quotes for homeowners insurance across most policy limits. In fact, for all of the policy limits we sampled, Mercury offered either the highest quote or the second highest. While some insurance companies mitigate their high rates with substantial discounts, that simply isn’t the case with Mercury. Mercury’s limited discounts mean that the quote that you receive is likely very close to what you’ll end up paying. If you’re interested in comparing rates, you should evaluate how much you pay relative to the average cost of homeowners insurance in your state.

How Do Mercury's Home Insurance Quotes Compare to Other Insurers?

Mercury Insurance Financial Strength Ratings

Although it isn’t a name that’s as easily recognizable as State Farm or Farmers, Mercury’s customers can rest easy knowing that the company has the financial means to pay customer claims. A.M. Best Rating Services, an independent rating agency, assigned Mercury Insurance an A+ for financial strength, which is the second highest possible rating. The rating signifies that Mercury Insurance has a superior ability to meet its financial obligations, such as customer claims.

Mercury Insurance Reviews and Complaints

Just because an insurance company has the ability to meet customers’ claims doesn’t mean that customers will benefit from a painless customer claims process. In fact, Mercury’s online reviews are mixed with many customers complaining about being dropped from coverage after receiving payment for filed claims. J.D. Power affirms Mercury’s inconsistent service and claims processing by ranking the company’s overall customer satisfaction as average and below average for homeowners and auto insurance, respectively.

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