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State Farm vs Liberty Mutual

Teenage boy looking out car window during family road trip
Thomas Barwick/Getty Images
Teenage boy looking out car window during family road trip
Thomas Barwick/Getty Images
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State Farm is the largest personal insurance company in the U.S. by market share. 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, and a relatively large carrier. The company has been in business since 1912, and its stated goal is providing personal and business insurance solutions for its customers. Liberty Mutual’s insurance offerings include auto, home, small business and life insurance.

State Farm vs Liberty Mutual: car insurance rates comparison

State Farm has an average annual full coverage premium of $1,397 per year, which is quite a bit lower than the national average of $1,771. Rates are not available for Liberty Mutual. Both State Farm and Liberty Mutual have good financial stability ratings with AM Best, meaning they are solidly rated in terms of how financial resources are managed, but State Farm’s score is the highest possible. J.D. Power rates State Farm as having above-average claims satisfaction, while Liberty Mutual falls in the below-average range.

Bankrate took these factors, as well as complaint index scores from the National Association of Insurance Commissioners (NAIC) and a review of each company’s coverage and discount offerings, and created a Bankrate Score. The highest possible Score is 5.0, so the more highly-rated a carrier is, the higher that carrier scored in each rating category. State Farm earns a higher Bankrate Score than Liberty Mutual.

Car insurance company Bankrate Score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
State Farm 4.7 A++ 892/1,000 $456 $1,397
Liberty Mutual 3.9 A 876/1,000 N/A N/A

Rates by credit score

Your credit score is one of the factors that insurers take into consideration 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 (California, Hawaii, Massachusetts and Michigan) do not allow insurers to factor in credit score. Additionally, Washington State has a credit ban currently on hold in the court system.

Although rates are not available for Liberty Mutual, you can see from the table below that State Farm tends to have lower average premiums than the national average. The exception is for the “poor” credit tier, with the average State Farm premium at 19% higher than the national average. .

Average annual full coverage premiums

Car insurance company Poor Average Good Excellent
National average $3,002 $1,907 $1,771 $1,556
State Farm $3,584 $1,556 $1,397 $1,107

Rates by age

Your age is another factor that insurers take note of when deciding on your premium, except in Hawaii and Massachusetts, where age is a banned rating factor. 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 that 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 statistically 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 about 64% with a DUI conviction factored in, other national providers see even higher increases. Nationally, the average increase with a DUI is around 93%.

Average annual full coverage premiums

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
National average $1,771 $2,138 $2,521 $3,421
State Farm $1,397 $1,606 $1,769 $2,293

State Farm vs Liberty Mutual: discounts

Almost every insurer offers at least a few car insurance discounts, which can play a big role in reducing your premium. When looking at Liberty Mutual vs State Farm, both carriers offer a decent list of savings opportunities. However, the discounts that you 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% on certain coverage types 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 on your premium.
  • Bundling: If you have homeowners, renters, condo or life insurance with State Farm in addition to your auto insurance, you can save money on several different policies.

Liberty Mutual

  • Military: Liberty Mutual 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 could receive 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 money on your premium, depending on the state you live in.

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.

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 (4.7 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

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 2020 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-based insurance scores: 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. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts, and Michigan. Washington’s ban on factoring credit in premiums is currently on hold in the courts.

Age: Rates were calculated by evaluating our 2021 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.

Incidents: 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 and lapse in coverage.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed nearly 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Written by
Mary Van Keuren
Insurance Contributor
Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.
Edited by
Insurance Editor