State Farm vs Liberty Mutual

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State Farm writes more premiums than any other insurer in the U.S. and holds 9.12% of the insurance market. The company has been selling policies since 1922, and receives strong marks for customer satisfaction and financial strength from third-party rating agencies, such as J.D. Power and AM Best. In addition to auto insurance, State Farm offers home, renters and life insurance policies.

Liberty Mutual is also a household name in insurance, representing 4.99% of the market; this makes it the fourth largest insurer in the U.S. It has been in business since 1912, and its stated goal is providing personal and business insurance solutions for its customers. Liberty Mutual has roughly 45,000 employees and sells policies in 29 countries across the globe.

State Farm vs Liberty Mutual: car insurance rates comparison

Both State Farm and Liberty Mutual have good financial stability ratings with AM Best, meaning they are on solid ground in the way financial resources are managed. J.D. Powers gives both a decent rating for customer satisfaction, although State Farm comes out a bit ahead here. The Bankrate Score provided below is largely based on these factors and are intended to help you see how providers compare in key areas of priority for policyholders.

Car insurance company Bankrate Score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
State Farm 4.4 A 881/1,000 $539 $1,457
Liberty Mutual 3.9 A 867/1,000 N/A N/A

Rates by credit score

Your credit score is one of the factors that insurers take into consideration in most states when determining your premium rates. Based on quoted annual premiums from Quadrant Information Services, a higher credit rating will usually reflect a lower premium. Four states (Hawaii, California, Washington and Massachusetts) do not allow insurers to factor in credit score. As a top insurer by market share, Liberty Mutual’s rates will likely align approximately with the national average — similar to State Farm — although rates are not currently available for comparison.

Car insurance company Poor Average Good Excellent
National average $3,873 $1,865 $1,674 $1,487
State Farm $3,309 $1,656 $1,457 $1,126

Rates by age

Your age is another factor that insurers take note of when deciding on your premium. A general rule of thumb is that the younger you are, the higher risk you represent, corresponding to higher rates. This is because younger drivers are statistically more likely to be involved in accidents or file a claim than older drivers. State Farm’s rates average several hundred dollars below the national average in each age category. In keeping with the national average, it is likely Liberty Mutual’s average rates also trend cheaper over time. Direct quotes can help you determine which provider offers more competitive rates for you, based on your current age.

Car insurance company Age 16* Age 18 Age 25 Age 30 Age 40 Age 60
National Average $2,531 $5,243 $2,108 $1,850 $1,674 $1,544
State Farm $2,077 $4,137 $1,694 $1,494 $1,457 $1,327

*16 year old cost when added to parents’ policy, 18-year-old renter

Rates by driving record

Driving record is another key factor contributing to your rate. Insurers often incentivize or reward safe, careful drivers because they are less likely to be involved in an accident requiring a claim. Among all incidents, a DUI conviction will have the highest impact on your rate, and in some cases may even cause you to be ineligible for a policy renewal. While State Farm’s average annual premiums for full coverage increase by 50% with a DUI conviction factored in, other national providers see even higher increases. Nationally, the average increase with a DUI is more than 87%.

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
National average $1,674 $2,062 $2,311 $3,139
State Farm $1,457 $1,590 $1,657 $2,201

State Farm vs Liberty Mutual: discounts

Almost every insurer offers discounts, which can play a big role in reducing your premium. When looking at Liberty Mutual vs State Farm, the former comes out on top with 17 listed discounts compared to State Farm’s 13. However, discounts you may qualify for will depend on your circumstances. The following discounts from each provider may provide significant savings for drivers who qualify.

State Farm

  • Drive Safe and Save — State Farm’s telematics discount rewards you for installing an app on your smartphone that sends the company real-time info on your driving skills. Demonstrate good driving and you may be able to save up to 30% in most states.
  • Steer Clear — This discount is for drivers under 25 years of age without any at-fault accidents or moving violations. Stay that way for three years and you could save as much as 20%.
  • Bundling — If you have homeowners, renters, condo or life insurance with State Farm in addition to your auto insurance, you can save up to 17%.

Liberty Mutual

  • Military — Liberty Mutual is one of the few providers who offers a specific military discount if you are an active, retired or reserved member of the U.S. Armed Forces.
  • Accident-free — If you avoid accidents and remain accident-free for several years, you will receive a savings on your Liberty Mutual policy. Exact savings amount and availability will vary by state.
  • Online policy purchase — By purchasing your policy online with Liberty Mutual, you can save an average of 12% on your auto coverages, as applicable by state.

State Farm vs Liberty Mutual: online and mobile experience comparison

State Farm and Liberty Mutual both have well-reviewed apps for iOS and Android devices. These apps allow you to do much of your insurance business and policy management on the go from your smartphone. In addition to the general-use apps, State Farm also has a highly regarded Pocket Estimate 2.0 app that lets you obtain a repair estimate on your phone.

State Farm

  • App Store (4.8 stars) — State Farm’s app for iOS is fairly comprehensive. It allows you to pay your bill, view your ID card and add it to Apple Wallet, view your policies and file a claim. You can manage that claim, get roadside assistance and even obtain a rental from Hertz or Enterprise.
  • Google Play (4.6 stars) — Like the Apple version, State Farm’s Android app lets you view and manage your policies, get roadside assistance and file a claim. You can also view the details of your State Farm investment products and set personalized notifications when you log in.

Liberty Mutual

  • App Store (4.8 stars) — Access documents, pay your bill, make changes to your coverage and electronically sign documents with the Liberty Mutual app for iOS. You can also use the app to call for emergency roadside assistance and to file and manage claims.
  • Google Play (4.6 stars) — Liberty Mutual’s Android app has the same features as the iOS version. You can tap to quickly call roadside assistance, search for repair shops and request a rental vehicle when needed. One nice touch: a guided experience walks you through the process of taking photos after an accident.

Frequently asked questions

What is the best car insurance company?

The best car insurance company depends entirely on your needs and current life situation. To find the best company for your purposes, it may help to start with Bankrate’s Best Car Insurance Companies for 2021 review and gather quotes from multiple providers, to see who gives you the best rate for the coverage you need.

What is the average cost of car insurance?

The national average is $,1674 a year for full coverage, which includes liability, collision and comprehensive. Your exact rate will vary depending on your state, your age, vehicle type, specific ZIP code and credit rating, among other variables.

How can I save money on auto insurance?

One way you can earn significant savings is through the use of discounts. Just about every insurer — including State Farm and Liberty Mutual — offer multiple discounts. Being a safe driver with no claims often earns a lower rate with most providers, as does bundling policies.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. 16-year-old rates were factored as the added cost to their parents’ policy; 18-year-old rates were calculated as drivers who rent their primary residence.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction (BAC of >= .08) and lapse in coverage.

Written by
Mary Van Keuren
Insurance Contributor
Mary Van Keuren has five years of experience writing for insurance domains such as Bankrate.com, Coverage.com and Thesimpledollar.com. She has also written extensively for consumer websites including reviews.com and myslumberyard.com. Prior to that she worked as a writer in academia for several decades.
Edited by
Insurance Editor