Liberty Mutual vs. State Farm
Which car insurance do consumers prefer?
Only one insurance company in the country can call itself the largest car insurer in the United States, and that company is State Farm. With nearly 20 percent of the market, State Farm is the most popular car insurance company that consumers buy an auto insurance policy from. While Liberty Mutual's market share is far lower at 3 percent, it's still the seventh largest car insurer in the country.
So what are consumers saying about their experiences with Liberty Mutual and State Farm? Is State Farm that much better than Liberty Mutual, and should youg et life insurance and other insurance products from them as well?
To help you better assess which company consumers prefer, we've compiled rankings based on thousands of ratings policyholders have provided of the companies on Clearsurance.
Scroll down the page to see how consumers rate Liberty Mutual and State Farm, what discounts the insurance companies offer, and additional features you can get with them.
Jump to: Consumer ratings of Liberty Mutual and State Farm
Does State Farm or Liberty Mutual Have Better Insurance Rates?
Which car insurance company offers cheaper car insurance rates, Liberty Mutual or State Farm? The easiest way to answer this question is by getting an insurance quote. Sometimes, one company is better than the other. While the rates the companies offer will vary by person and location, we've gathered average national rates to provide a comparison of Liberty Mutual and State Farm.
In the table below, compare the average national car insurance rates for Liberty Mutual and State Farm for three different driver profiles for male and female. Keep in mind these are only national averages for a certain profile. Your car insurance rates will differ from these depending on where you live, your unique driver profile and your coverages, among other things.
| Driver profile | Liberty Mutual average rates | State Farm average rates |
|---|---|---|
| Male teen | $3,199 | $1,967 |
| Male adult | $2,862 | $1,418 |
| Male senior | $2,588 | $1,062 |
| Driver profile | Liberty Mutual average rates | State Farm average rates |
|---|---|---|
| Female teen | $2,625 | $1,721 |
| Female adult | $2,845 | $1,418 |
| Female senior | $2,583 | $1,062 |
To determine the average national rates for male and female drivers for Liberty Mutual and State Farm, we created three driver profiles for both males and females and got rates for drivers for each profile. The profiles for male and female drivers were an 18-year-old teen with state minimum coverages and fair credit; a 35-year-old single adult with 100/300/50 liability limits in addition to full coverage with $500 deductibles for collision and comprehensive, a good credit score and one driving violation in the last three years; and a 65-year-old driver with 100/300/50 liability limits in addition to full coverage with $500 deductibles for collision and comprehensive, a good credit score and no driving violations in the last three years. Additionally, we averaged the rates in each state we had data for that company. Rate data is provided by Quadrant Information Services.
What Should You Know about Liberty Mutual before Getting an Online Quote?
Liberty Mutual employs more than 50,000 employees worldwide and offers a wide range of insurance products. Aside from car insurance, you can also purchase homeowners, renters, life, business, motorcycle and many other types of insurance. If you're looking to insure multiple products through the same company, Liberty Mutual does have a multi-policy discount to help you save.
If you’re planning to buy collision coverage, Liberty Mutual has a way for you to lower your deductible over time. The Liberty Mutual Deductible Fund is essentially a way for you to put aside money over time so you don't have to come up with your entire deductible at once after an at-fault accident that requires a claim. You can read more about the program here. In essence, you and Liberty Mutual contribute each year to a fund (up to $100 annually) that's then used to pay your deductible if you have an at-fault collision.
One potential way you can save with Liberty Mutual is by enrolling in the insurer's usage-based program, which it calls RightTrack. Liberty Mutual monitors your driving habits, and if it deems you to be a safe driver, you can see savings of up to 30 percent. RightTrack monitors things such as your acceleration, hard braking events, the number of miles you drive, the time of day you drive and rapid acceleration. Their device offers real-time feedback through your app. So you have the chance to change your habits and earn a bigger discount on your auto insurance coverage within the 90 day period.
What Are The Most Important Things to Know about State Farm?
State Farm is based out of Bloomington, Illinois. If you're buying a State Farm policy, you're probably working with a captive insurance agent (they only sell State Farm). So despite being the largest car insurance company in the country, State Farm still prides itself on a local feel by employing more than 18,000 agents nationwide. The downside to this agents cannot compare policies from different insurers. So you'd have to go online to seek out other quotes if you wanted to compare your options.
Among the additional programs State Farm offers is its Drive Safe and Save discount. By allowing State Farm to track your driving through your mobile device or your vehicle's OnStar system, you could qualify for a discount of up to 50 percent, according to State Farm. To learn more about car tracking device programs, including State Farm's Drive Safe and Save, check out our blog.
Unlike Liberty Mutual, State Farm has a specific coverage option for drivers who drive for companies like Uber or Lyft. Offering a rideshare coverage program, State Farm says that it typically costs about 15 to 20 percent more than your normal, personal State Farm premium. If you're in an accident that falls in the grey area between your rideshare partner's coverage and your personal coverage, it could save you thousands in bodily injury and more.
State Farm also offers ways for younger drivers to earn savings as a leading auto insurance provider. In addition to a good student discount, State Farm also has an initiative called the Steer Clear Driver Program. If you're under the age of 25 and have been accident and violation free for at least the past three years, you can complete the Steer Clear program to earn a discount. You can learn more about the program by visiting State Farm’s website.
So how do consumers rate the largest car insurance company in the country? Check out the tables below to see ratings from consumers in addition to other ways you can save with State Farm and Liberty Mutual.
How do consumers rate Liberty Mutual and State Farm?
What discounts do Liberty Mutual and State Farm offer?
Even with the largest auto insurance, discounts vary based on the person. Sometimes, you could even save money compared to the initial online quote you get by talking to an agent who can review your case. They can look for discounts the system may have missed. Online quotes give you a basic idea of who is offering competitive rates. Then you can do more research online into the actual policy.
Talk with an agent or visit the company’s website for a comprehensive list of all discounts you may qualify for.
