USAA vs Liberty Mutual

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USAA was founded in 1922 among a group of Army officers who agreed to insure each group member’s vehicle. To this day, USAA continues to focus solely on military families and has now expanded to become the fifth largest auto insurance carrier. The corporate offices are located in San Antonio, Texas but the carrier also has offices throughout the country and worldwide.

Liberty Mutual is another massive-sized insurance carrier, ranking as the sixth largest auto insurance provider behind USAA. It was founded in 1912, but did not write the first auto insurance policy until 1918. Now Liberty Mutual offers a vast array of insurance products and earns almost $44 billion in annual revenue.

While both offer similar products, one company may offer more advantages than the other for some people.

USAA vs Liberty Mutual: Car insurance rates comparison

While exact datas rates with Liberty Mutual are not available like they are with USAA, there are other categories where the differences are highlighted between the carriers. USAA performs higher with the Bankrate score and the financial strength rating with AM Best. USAA also receives a higher scoring average with the JD Power survey for overall customer satisfaction.

Car insurance company Bankrate Score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
USAA 4.8 A++ 890/1,000 $384 $1,225
Liberty Mutual 3.9 A 867/1,000 No rate data available No rate data available

Rates by credit score

Rates are influenced by your credit score with almost all carriers, and USAA is no exception. The higher your credit score, the lower your premiums might be. It should be noted the states of California, Hawaii and Massachusetts do not allow a person’s credit score to be factored into rate determinations.

Car insurance company Poor Average Good Excellent
USAA $2,270 $1,277 $1,225 $1,030
National average $3,873 $1,865 $1,674 $1,487

Rates by age

Age plays a significant role in how rates are determined. With both USAA and other carriers, rates tend to peak at their highest around age 18 — presumably when drivers are no longer under their parent’s policy. Rates typically decline as the driver ages.

Car insurance company Age 16* Age 18 Age 25 Age 30 Age 40 Age 60
USAA $2,186 $3,361 $1,510 $1,295 $1,225 $1,073
National Average $2,531 $5,243 $2,108 $1,850 $1,674 $1,544

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

Rates by driving record

Whether your coverage is with USAA or Liberty Mutual, if you have a clean driving record, you will likely benefit from low average rates. Getting charged with a speeding ticket, accident or DUI conviction are all circumstances where you will see a premium increase.

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
USAA $1,225 $1,463 $1,742 $2,177
National average $1,674 $2,062 $2,311 $3,139

USAA vs Liberty Mutual: Discounts

Both USAA and Liberty Mutual offer multiple discounts for added savings on premiums. With both, multi-vehicle, multi-policy and a good student discount are examples of ones both offer. However, Liberty Mutual seems to offer more, including a discount simply by purchasing your policy online. Purchasing your policy online may qualify for an additional 12% savings, according to the Liberty Mutual website.

USAA

  • Length of loyalty: The more loyalty you show to USAA, the greater your discount. Discount is determined based on the number of years you are a policyholder with USAA.
  • No payment plan fees: Most carriers allow you to spread payments over a period of time, such as monthly or quarterly, but it usually incurs fees to do so. USAA does not charge policyholders for this option.
  • Parent’s loyalty: If your parents have a current USAA policy for at least five years, you will get a loyalty discount on your own policy.

Liberty Mutual

  • Homeowners: If you own a home, you may earn a special discount simply by being a homeowner.
  • Alternative fuel: If you drive an electric or hybrid vehicle, you may save on your policy.
  • Early shopper: If you renew your policy before your current policy expires, it may make you eligible for additional savings.

USAA vs Liberty Mutual: online and mobile experience comparison

Both USAA and Liberty Mutual offer full service and policy management both with the online portal and mobile app. Both allow you to file claims, document the entire claims process and make payments online or via the app. The Liberty Mutual app offers slightly more features, including the ability to request a rental vehicle or schedule a damage review.

USAA

  • 4.8/5: The USAA app receives mostly positive reviews. The most frequent comment is how easy the app is to use and how great the customer service is overall.
  • 4.5/5: The Android version is rated slightly lower than the Apple version, although it has the same features. The main negative comments center around how often the app freezes and needs updates.

Liberty Mutual

  • 4.8/5: The Liberty Mutual app performs extremely well according to the customer comments. The biggest positive aspect is how easy it is to use and how many tasks can be performed via the app.
  • 4.5/5: The same tasks can be performed here as in the Apple version. Customers also praise how easy it is to use the Android version and find everything you need for your policy.

Frequently asked questions

What is the average cost of car insurance?

The average cost of car insurance is $1,674 annually for a full coverage policy. However, your annual rates could be higher or lower depending on a variety of factors. Your age, zip code, carrier, vehicle and driving history are all factored in when determining premiums.

Is USAA cheaper than Liberty Mutual?

USAA offers competitive rates across a wide range of circumstances. If you meet the eligibility requirements for USAA, it is possible to obtain cheaper premiums versus Liberty Mutual.

How do I obtain a quote?

Both USAA and Liberty Mutual offer online options or by calling the customer service numbers to obtain a quote. Remember, with USAA you must be a current member of the military, a veteran or an immediate family member of one to qualify for coverage.

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
Sara Coleman
Insurance Contributor
Sara Coleman has three years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.
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