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USAA vs Liberty Mutual

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USAA, an insurance company that was founded in 1922, focuses solely on serving military families. The corporate offices are located in San Antonio, Texas but the carrier also has offices throughout the country and worldwide. Liberty Mutual is another well-known insurance carrier. It was founded in 1912 and now offers a vast array of insurance products.

While both companies offer similar products, Bankrate’s comparison of the two insurance companies may be able to help you decide which one is right for your needs.

USAA vs Liberty Mutual: Car insurance rates comparison

When comparing car insurance providers, we started by reviewing average annual premium data obtained from Quadrant Information Services. When compared to the national average rates, USAA’s average insurance prices are cheaper. Rates from Liberty Mutual are not available, but there are other categories where differences are highlighted between the carriers.

In addition to rate data, we also looked at factors like financial strength, customer satisfaction, discounts and mobile tools, and used this information to issue each company a Bankrate Score on a 5.0 scale. USAA earned a perfect 5.0 Bankrate Score, along with the highest possible financial strength rating from AM Best. USAA also receives a higher-scoring average with the J.D. Power survey for auto claims satisfaction, although its eligibility restrictions preclude it from official ranking.

Car insurance company Bankrate Score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
USAA* 5.0 A++ 909/1,000 $354 $1,209
Liberty Mutual 3.9 A 876/1,000 No rate data available No rate data available

*Not officially ranked by J.D. Power due to eligibility restrictions

Rates by credit score

Nearly all insurance companies in most states use your credit tier as a rating factor, and USAA is no exception. Generally, the higher your credit score, the lower your premiums will be. It should be noted the states of California, Hawaii and Massachusetts and Michigan do not allow a person’s credit score to be factored into rate determinations. Washington also currently has legislation in the courts to potentially ban credit as a rating factor.

Average annual full coverage car insurance premiums by credit tier

Car insurance company Poor Average Good Excellent
USAA $2,317 $1,309 $1,209 $1,070
National average $3,002 $1,907 $1,771 $1,556

Rates by age

Age plays a significant role in how rates are determined in all states except Hawaii and Massachusetts. With both USAA and other carriers, rates tend to peak at their highest around age 18. Rates typically decline as the driver ages.

Average annual full coverage car insurance premiums by age

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, having a clean driving record makes it more likely that you may get lower rates than if you have had one or more driving incidents. Getting charged with a speeding ticket, accident or DUI conviction are all circumstances where you will likely see a premium increase.

Average annual full coverage car insurance premium by driving record

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
USAA $1,209 $1,464 $1,742 $2,313
National average $1,771 $2,138 $2,521 $3,421

USAA vs Liberty Mutual: Discounts

Both USAA and Liberty Mutual offer multiple car insurance discounts for added savings, including multi-vehicle, multi-policy and good student. However, keep in mind that discounts vary by location and eligibility requirements may vary as well. The best way to know if you qualify for savings is to talk to a company representative.

USAA

  • SafePilot: This is USAA’s car insurance telematics discount, which tracks your driving patterns via an app and could assign you a personalized discount based on the data received.
  • Loyalty: If your parents had a USAA policy and you get one of your own, you might save. Then, the longer you keep your USAA policy, the more savings you could earn.
  • Military installation: If you garage your vehicle on a military base, you might qualify for savings on your auto insurance policy.

Liberty Mutual

  • Homeowners: If you own a home, you may earn a discount on your car insurance, even if you don’t insure it with Liberty Mutual.
  • Early shopper: If you get a quote from Liberty Mutual before your current policy expires, it may make you eligible for additional savings.
  • Military: Liberty Mutual offers car insurance savings to active, retired or reserved members of the military.

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

  • App Store — 4.8/5.0: The iOS version of 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.
  • Google Play — 4.3/5.0: The app’s Android version is rated 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

  • App Store — 4.8/5.0: The iOS version of the Liberty Mutual app performs 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.
  • Google Play — 4.7/5.0: The same tasks can be performed on Android as in the Apple version. Customers also praise how easy it is to use the Android version, although recent comments indicate glitches happening more frequently.

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 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. The following states do not allow age to be a factor in determining auto insurance rates: HI

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

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 across 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
Sara Coleman
Former Insurance Contributor
Sara Coleman is a former insurance contributor at Bankrate. She has a couple of years of experience in writing for insurance domains such as 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.
Edited by
Insurance Editor