Liberty Mutual vs. State Farm: Which Insurer Is Better for You?

State Farm and Liberty Mutual are two big names in the car insurance industry. State Farm offers cheaper car insurance rates than Liberty Mutual, with an average monthly premium of $85 compared to Liberty Mutual’s $146. State Farm also outperforms Liberty Mutual in customer satisfaction and claims satisfaction, earning higher scores in both areas.

But Liberty Mutual has more coverage options and available discounts, making it an attractive choice for drivers who prioritize these features. Let’s see how Liberty Mutual and GEICO stack up so you can decide for yourself.

Key Takeaways:

• State Farm offers the lowest average rates to people with spotty driving records.
• Liberty Mutual costs almost twice as much for coverage across every age group.
• Liberty Mutual offers gap insurance and Better Car Replacement coverage, making it a good choice for new car owners.

How State Farm and Liberty Mutual Stack Up

Price is just one piece of the puzzle when comparing car insurance companies. To help you find the right fit, we’ve researched dozens of companies to calculate a Compare.com Rating for each insurer. How much you’ll pay is one factor we look at, but we also consider customer satisfaction, ease of use, availability, and company reputation.

The table below shows how State Farm and Liberty Mutual measure up across different categories.

State Farm and Liberty Mutual both earn high marks in the ease of use and availability categories. But State Farm comes out on top for pricing, keeping customers happy, and having a rock-solid reputation.

Liberty Mutual vs. State Farm: Breaking Down Average Rates

Insurers review your location, driving record, coverage levels, and credit history to calculate your premium. That’s why rates vary from driver to driver. For instance, poor credit can double your cost, even if you have a good driving history, according to a Consumer Federation of America report released in 2023.

The table below shows how Liberty Mutual and State Farm pricing compare for different common coverages and driver profiles, as well as how they compare to the national average.

These averages give you a helpful snapshot. Still, it’s important to remember that your personal rate can vary widely, especially considering where you live. That’s why it’s always smart to compare quotes from multiple companies when shopping for car insurance to find the best coverage for the best price.

State Farm vs. Liberty Mutual: Average Car Insurance Rates by State

Your home state can have a huge effect on how much you pay for car insurance coverage. Each state has its own unique set of factors for calculating rates, like how many people are in the area, how often accidents happen, and what kind of insurance regulations are in place. It’s why the same driver profile might pay drastically different premiums in different states.

To give you a better idea of how Liberty Mutual and State Farm’s rates compare across the country, we’ve provided each state’s average premiums in the table below.

State Farm has lower average premiums than Liberty Mutual in most states, except New Jersey — but the insurers tie in North Carolina, according to our data.

Liberty Mutual vs. State Farm: Average Rates by Age

Age is one of the most important factors affecting auto insurance costs. Young drivers — especially teens — typically face the highest premiums because they lack experience behind the wheel. Plus, distracted driving is more likely to cause fatal car accidents in people aged 18 to 34 than any other age group, according to the National Highway Traffic Safety Administration (NHTSA).

Check out the data in the table below to see how your rates compare to the average cost by age.

Which company is better for teens?

Teenage drivers often have the steepest car insurance rates. Car insurers view teens as high-risk because of their inexperience and impulsive behavior, which can lead to accidents.

State Farm offers more affordable rates for teens, with an average monthly cost of $140 compared to Liberty Mutual’s $236.

Which company is better for seniors?

Senior drivers generally enjoy the lowest car insurance rates of any age group. The wealth of driving experience and tendency to drive less frequently than younger drivers makes older motorists less risky to insure.

State Farm comes out on top for drivers in their 60s, with an average premium of $62 per month, while Liberty Mutual’s is $118.

State Farm vs. Liberty Mutual: Average Rates by Driving Record

Your driving record is like a report card for insurers — it gives companies a glimpse into how risky you might be behind the wheel. If you get a speeding ticket, accident, or DUI conviction, expect to pay more for car insurance. This raises red flags for insurers because it indicates you’re more likely to file a claim in the future.

Let’s compare Liberty Mutual and State Farm average rates for different driving records.

Which company is better for good drivers?

Insurance companies typically offer the lowest car insurance rates to drivers with clean records. These types of drivers are less likely to file claims, making them less risky to insure. Take a look at the cost differences between Liberty Mutual and State Farm — State Farm’s average rate of $85 per month is cheaper than Liberty Mutual’s $146.

Which company is better for drivers with a ticket?

A speeding ticket can cause your auto insurance rates to jump by an average of 27% nationally, according to Compare.com data. But the effect on your premium depends on your insurer.

State Farm offers lower average prices for drivers with a speeding ticket, at $94 per month, while Liberty Mutual’s average monthly cost is $196.

Which company is better for drivers with a recent accident?

If you cause a car accident, brace yourself for a 34% hike in your car insurance rates, according to Compare.com data. That’s the national average increase, but the damage to your wallet depends on your insurer.

In this case, State Farm might be your best bet — the average monthly premium for policyholders with an at-fault accident on their record is $102. On the other hand, Liberty Mutual charges $109 per month, on average.

Which company is better for drivers with a DUI?

A DUI conviction can increase your insurance rates by a jaw-dropping 50% on average nationwide, according to Compare.com data. Insurers don’t mess around when it comes to this serious offense — which shows in company premium increases.

State Farm seems more forgiving if you have a DUI on your record. Drivers with a DUI pay an average monthly premium of $132 with State Farm, compared to Liberty Mutual’s average monthly cost of $226.

Comparing State Farm and Liberty Mutual Car Insurance Coverages

Comparing State Farm and Liberty Mutual car insurance coverages reveals a wide range of options beyond basic liability protection. From collision and comprehensive to roadside assistance and rental car reimbursement, both companies allow you to customize your policy to fit your needs. But the specific coverages available vary between the two insurers.

Here’s an overview of the different auto coverages that Liberty Mutual and State Farm offer.

Liberty Mutual offers more coverage options than State Farm. Both offer standard coverages like liability, full coverage, roadside assistance, and rideshare insurance. But Liberty Mutual offers accident forgiveness while State Farm doesn’t.

Another key difference is gap insurance. It covers the difference between what you owe and your car’s worth if you total it. You can also get gap coverage from Liberty Mutual, but State Farm only covers State Farm Bank-originated vehicle loans.

Comparing State Farm and Liberty Mutual Car Insurance Discounts

Car insurance discounts can be a great money-saving opportunity. Insurance companies offer a range of options to cut costs using factors like your driving history, the number of vehicles you insure, and even your profession.

Popular discounts include those for safe driving, low mileage, and bundling your car insurance with other policies like homeowners or renters insurance.

Consider the discounts you might qualify for and compare them to the table below. It shows the discounts you’ll find from Liberty Mutual and State Farm.

Both Liberty Mutual and State Farm offer a solid selection of discounts. But Liberty Mutual has more — 18 available discounts compared to State Farm’s 12.

You can save with Liberty Mutual if you drive an alternative-energy vehicle, sign up for automatic payments and paperless billing, and pay your premiums in full. It also caters to specific groups, like teachers and military members.

But State Farm has a few discounts that Liberty Mutual doesn’t, including loyalty discounts for long-term customers and savings for low-mileage drivers.

Comparing Liberty Mutual and State Farm Customer Satisfaction

Customer reviews might not give you the full picture, but they can provide valuable insights into how a company treats its customers. We reviewed customer reviews across multiple platforms and found that State Farm scores better on Trustpilot, Clearsurance, and the Better Business Bureau (BBB). But Liberty Mutual has a higher rating on ConsumerAffairs.

The table below shows Liberty Mutual’s and State Farm’s customer satisfaction ratings across four popular review platforms.

If you look at reviews from both companies, a few trends emerge. The Liberty Mutual reviewer below praised the company’s customer support and noted that their rates didn’t go up after an accident.

But another — shown in the following screenshot — was frustrated with the lack of communication from the company when trying to get a claim payout.

State Farm reviews also uncover customer complaints about claims. The customer in the screenshot below felt the claim payout was too low and had trouble getting a response from a representative, even after contacting the company by phone and email.

Another longtime customer, who previously had a good experience with State Farm’s claims handling, ran into issues after filing three minor claims. In this case, the reviewer said State Farm sent them a letter explaining a concern about the number of claims they had filed.

More About State Farm and Liberty Mutual

While price and customer reviews are important for choosing a car insurance company, a few other factors can (and should) influence your decision. Let’s take a closer look at some additional points of comparison for State Farm and Liberty Mutual.

Company perks

State Farm and Liberty Mutual both have telematics programs — Drive Safe & Save and RightTrack, respectively — that track your driving habits and can help you save some cash on premiums.

But only Liberty Mutual has a vanishing deductible. Plus, if you total your car, Liberty Mutual has Better Car Replacement coverage that helps protect against depreciation.

Claims processing

State Farm scored a bit higher than Liberty Mutual on the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. While you can file a claim online in about five to 10 minutes with Liberty Mutual, State Farm has a photo estimate option that lets you snap pics of the damage and get a payout within 48 hours.

State Farm might be the best option if you’re in a bind and need the money fast.

Mobile apps

State Farm and Liberty Mutual both offer mobile apps to manage your policy on the go. Liberty Mutual’s mobile app lets you access policy documents, manage payments, make changes to your policy, and download ID cards.

But State Farm’s app is more robust. You can get roadside assistance, file and manage claims, and even connect with your agent directly.

Liberty Mutual vs. State Farm FAQs

If you’re trying to decide between Liberty Mutual and State Farm for your car insurance needs, you probably have a few questions. Here are answers to some common questions to help you decide.

What are the best car insurance companies?

The best car insurance companies offer competitive rates, reliable coverage, and excellent customer service. Some of the top contenders are Liberty Mutual, State Farm, GEICO, Progressive, and USAA.

Remember that the best insurer for you depends on your unique needs and preferences.

Why is Liberty Mutual so cheap?

Liberty Mutual is so cheap because it offers a wide range of discounts, such as multi-policy, safe driver, and good student discounts. These savings help keep premiums down.

But keep in mind that rates can vary depending on factors like your ZIP code, driving history, and coverage needs.

Is Liberty Mutual good at paying claims?

Yes. Liberty Mutual has a solid track record for paying claims. The company scored 866 out of 1,000 points in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, slightly below the industry average of 878. But the company has an AM Best financial strength rating of A (Excellent).

Is Liberty Mutual bigger than State Farm?

No. Liberty Mutual isn’t bigger than State Farm. State Farm is the largest car insurance company in the U.S., with 18% of the market share as of 2023, according to the National Association of Insurance Commissioners (NAIC).

Liberty Mutual is a major industry player, holding 4% of the market share, making it the sixth-largest car insurance company in the country.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology:

Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.

Sources:

1. J.D. Power, “2023 U.S. Auto Claims Satisfaction Study,” last accessed June 17, 2024.
2. Consumer Federation of America, “The One Hundred Percent Penalty,” last accessed June 17, 2024.
3. National Highway Traffic Safety Administration, “NHTSA Launches Put the Phone Away or Pay Campaign,” last accessed June 17, 2024.
4. Governors Highway Safety Association, “Teens and Speeding,” last accessed June 17, 2024.
5. Trustpilot, “Liberty Mutual,” last accessed June 17, 2024.
6. Clearsurance, “Liberty Mutual Insurance,” last accessed June 17, 2024.
7. ConsumerAffairs, “Liberty Mutual – Auto Reviews,” last accessed June 17, 2024.
8. Better Business Bureau, “Liberty Mutual Group,” last accessed June 17, 2024.
9. Trustpilot, “Statefarm,” last accessed June 17, 2024.
10. Clearsurance, “State Farm Insurance,” last accessed June 17, 2024.
11. ConsumerAffairs, “State Farm Auto Insurance Reviews,” last accessed June 17, 2024.
12. Better Business Bureau, “State Farm Insurance Company,” last accessed June 17, 2024.
13. NAIC, “2023 Top 25 Groups and Companies by Countrywide Premium,” last accessed June 17, 2024.