State Farm vs Mercury Home Insurance: Which is Better in 2023?

When shopping for home insurance, two of the largest national carriers to consider are State Farm and Mercury Insurance. But which provides better coverage and value for your money?

In this comprehensive guide, we’ll compare State Farm vs Mercury home insurance based on:

• Cost
• Discounts
• Claims satisfaction
• Financial strength
• Coverage options
• Availability

We’ll also provide tips to help you find the most suitable insurer for protecting your home.

Cost Comparison

On average, State Farm tends to be more expensive than Mercury for home insurance across most states.

For example, here are quotes for $300,000 homes in several sample zip codes:

However, you should always get quotes tailored to your property’s specifics. Prices can vary based on:

• Location
• Dwelling size
• Construction materials
• Your credit score
• Policy limits
• Deductible amount
• And more

So while Mercury tends to offer cheaper rates on average, there are situations where State Farm could provide the lower quote for your situation.

Discounts

Both Mercury and State Farm offer a range of discounts to help lower your premium:

State Farm Discounts

• Multi-policy (bundling home with auto or life insurance)
• New home
• Protective devices (alarms, sprinklers)
• Full pay
• Claim-free
• Retiree
• Defensive driver training

Mercury Insurance Discounts

• Multi-policy
• Loyalty
• Age of home
• Alarm system
• Fire extinguisher
• Retrofitting/upgrades
• Good payer

State Farm offers a few more discounts, especially for safe driving and responsible claims history. But the availability and extent of discounts varies by state.

Claims Satisfaction

When it comes to paying claims quickly and hassle-free, State Farm earns higher marks than Mercury in national customer surveys, including:

J.D. Power Claims Satisfaction Study

• State Farm: 896/1000 points
• Mercury: 873/1000 points

WalletHub Claims Rating

• State Farm: 4.4/5 stars
• Mercury: 3.5/5 stars

So you can likely expect a smoother claims process with State Farm. Though keep in mind, every adjuster is different. Focus on finding an insurer with strong financial backing and coverage options too.

Financial Strength

Both State Farm and Mercury are financially stable insurers:

• State Farm: A++ (Superior) rating from AM Best
• Mercury: A+ (Superior) rating from AM Best

The companies also have over $10 billion in assets each. State Farm is the larger carrier, but both should have the resources to pay claims without issue.

Home Insurance Coverage Options

When it comes to coverage options, State Farm provides more choices and flexibility:

• Dwelling coverage limits: State Farm goes up to $5 million; Mercury caps at $1 million
• Personal property coverage: State Farm covers up to $500,000; Mercury caps at $200,000
• Additional living expenses: State Farm covers up to 30% of dwelling limit; Mercury caps at 20%
• Scheduled personal property: State Farm allows scheduling jewelry, art, musical instruments etc.; Mercury does not.
• Identity fraud expense: Available from State Farm but not Mercury

So State Farm accommodates higher value homes more easily. But Mercury still provides all of the standard homeowners policy coverages.

Availability

One key advantage of State Farm is it provides nationwide coverage, with agents in all 50 states. So you can stick with State Farm when moving.

On the other hand, Mercury only operates in 11 states:

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

So Mercury is not an option for homeowners outside of those states. Even if you have Mercury auto insurance, you cannot bundle home insurance unless your property is located in one of their home insurance states.

How to Choose Between State Farm and Mercury

When choosing between State Farm vs Mercury for home insurance:

• Compare quotes – Get a specific quote for your property and don’t rely on average rates alone. Mercury may be cheaper for you.

• Check availability – Make sure the company operates in your state and area. State Farm has nationwide availability while Mercury is regional.

• Consider discounts – Find the insurer offering you the most savings opportunities through bundling policies and qualifying for discounts.

• Evaluate financial strength – Make sure the insurer has strong financial backing to pay claims. Both State Farm and Mercury are financially sound.

• Review customer service – State Farm tends to earn higher claims satisfaction marks than Mercury. But you can read local agent reviews too.

• Understand coverage options – State Farm accommodates higher value homes more easily while Mercury offers standard coverage.

For most homeowners nationwide, State Farm is the safer bet between these two options thanks to its broader availability, superior ratings, and more robust coverage selections.

But don’t rule out Mercury automatically if you live in one of its 11 states. The lower rates may make up for some of State Farm’s advantages for certain homeowners.

Is State Farm or Mercury Better for Renters Insurance?

If you’re seeking renters insurance specifically, State Farm is likely the better choice over Mercury. Here’s why:

• State Farm offers more personal property coverage. Its standard plans cover up to $30,000 in belongings with options up to $100,000. Mercury caps contents coverage at $25,000.

• State Farm has higher liability limit options than Mercury. You can get up to $300,000 to cover injuries on your property. Mercury tops out at $100,000.

• State Farm provides more add-on options like scheduled personal property coverage and identity theft protection. Mercury’s renters policies are pretty basic.

• State Farm offers nationwide availability whereas Mercury only operates regionally.

So State Farm gives renters more robust protection options and flexibility in coverage limits. But Mercury can still work for renters who just need to meet their landlord’s minimum liability requirements.

The Bottom Line

When comparing State Farm vs Mercury home insurance, State Farm tends to come out ahead for most homeowners thanks to higher customer service marks, greater coverage options, and nationwide availability.

But Mercury can provide a cost-effective alternative for basic homeowners or renters insurance in the 11 states it operates in. Be sure to get quotes from both when buying a new policy or considering switching insurers. Comparing options side-by-side is the best way to identify the right home insurance company for your needs and budget.