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Statefarm has only been good experiences for me, I hear great things about Mercury as well.
I'd say, you definitely get what you pay for though.
How efficient and quick they are in terms of handling claims, inspections, subrogation etc. really makes a difference on your peace of mind.
And then comes the important part that makes a difference in your peace of mind as you continue to drive the car down the road- How they choose to repair your vehicle.
I recently heard of an insurance company that asked a body shop to look for non-oem parts from 70+ different vendors to repair a brand new vehicle..
That said, it usually doesn't hit you until you get in an accident though.
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