Liberty Mutual Vs. State Farm

Key Points:

• Our team gives State Farm the edge over Liberty Mutual largely due to stronger customer service and J.D. Power customer satisfaction scores.
• Both State Farm and Liberty Mutual hold high ratings from the Better Business Bureau (BBB) and credit rating agency AM Best.
• State Farm is no longer taking on new customers in Massachusetts or Rhode Island.

Choosing a car insurance provider can be tough work: you have to compare costs, find the right coverage, and ultimately choose the provider that will give you the best customer experience. When it comes to Liberty Mutual vs. State Farm, we’ve got you covered. We’ve done an in-depth comparison of the two well-known auto insurance companies so you can find the best car insurance for you. 

If you’re ready to start comparing prices between major car insurance providers in your area, including Liberty Mutual insurance and State Farm, enter your zip code above to get free, personalized quotes.

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Liberty Mutual And State Farm Highlights

Our research found that Liberty Mutual is the best car insurance company for new drivers and State Farm has the best auto insurance for college students, given the discounts and attractive coverage options afforded to these groups. However, other drivers will find great coverage with both companies as well.

*Although State Farm advertises nationwide availability, the company is no longer taking on new customers in Massachusetts or Rhode Island. 

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Liberty Mutual Vs. State Farm: Coverage

Both State Farm and Liberty Mutual offer competitive coverage options, but Liberty Mutual outshines State Farm by providing a few more choices to its customers.

Here’s a breakdown of State Farm vs. Liberty Mutual coverage offerings:

Liability coverage, comprehensive, collision, MedPay, PIP, and UM/UIM insurance are all standard coverages when it comes to car insurance policies. Most states require certain limits of liability car insurance, whereas the rest are often optional.

Liberty Mutual Standout Coverage

Below are the coverages that make Liberty Mutual unique: 

Liberty Mutual Deductible Fund: Customers can lower their car insurance deductible by $100 each year by contributing $30 to a deductible fund.

Teacher’s car insurance: This type of insurance is exclusively available to teachers at no additional cost. It includes vandalism loss protection when your vehicle is parked at school or a school event, personal property coverage for teaching materials and school-owned property, and collision coverage when you’re driving on school-related business.

Mexico tourist car insurance: Did you know that if you’re driving to Mexico, you need coverage by an admitted and authorized Mexico insurer? Liberty Mutual’s partner MexPro offers customizable insurance plans so your coverage doesn’t stop at the border.

Lifetime repair guarantee: After an accident, Liberty Mutual will make arrangements for your repairs and guarantee them for as long as you own your vehicle. The only stipulation is that you need to choose to have your repairs done at one of Liberty Mutual’s 2,000 guaranteed repair network facilities.

State Farm Standout Coverage

Below are the coverages that make State Farm unique: 

Gap insurance: Although both car insurance companies offer gap insurance, State Farm offers gap insurance called Payoff Protector^® as an add-on through State Farm Bank.

Rideshare insurance: This type of coverage is especially valuable for customers who drive with Uber, Lyft, or another ridesharing service. It provides medical coverage for you and your passengers, emergency roadside assistance, and rental car reimbursement.

Final Thoughts On Coverage

Although Liberty Mutual has more coverage options than State Farm, not everyone will need every type of coverage. Auto insurance for teachers and road trips to Mexico is great when it applies to you, but if you don’t need it, State Farm can be a great option for standard coverage.

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Liberty Mutual Vs. State Farm: Cost And Discounts

If you’re wondering how much auto insurance will cost with Liberty Mutual or State Farm, the answer is: it depends. The cost of car insurance varies based on many factors, including your age, location, credit score, driving history, and ultimately what provider you choose to underwrite your auto insurance policy.

To collect and compare free quotes from providers available in your state, use the tool below.

Our research into Liberty Mutual vs. State Farm car insurance shows that State Farm has generally more affordable auto insurance rates than Liberty Mutual. Luckily, no matter which company you choose, there are plenty of discount opportunities you could qualify for to get cheaper car insurance.

Bundling Car Insurance

If you’re thinking of bundling your auto insurance with another type of insurance, it’s important to understand what each company offers.

RightTrack^® Vs. Drive Safe & Save™

Both companies offer usage-based savings programs through a plug-in device or mobile app that monitors safe driving habits. Liberty Mutual’s program is called RightTrack and State Farm’s is called Drive Safe & Save. See the chart below for a quick comparison between the two programs.

Final Thoughts On Cost

While Liberty Mutual has more available discounts than State Farm, Liberty Mutual’s rates are more expensive in general. We’ll leave it to you to decide which company wins this round–consider which discounts would apply more to you and your vehicle.

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Liberty Mutual Vs. State Farm: Ratings And Reviews

Liberty Mutual has an A- rating from the BBB, which is the exact same as State Farm’s BBB rating of  A-. However, State Farm holds the highest score possible from AM Best–an A++–which means it has strong financial stability. It’s not a pretty picture for either company when it comes to customer reviews on the BBB–both companies have a customer satisfaction rating under 2 out of 5 stars. 

According to J.D. Power’s 2023 U.S. Auto Insurance Study℠, State Farm ranks higher than Liberty Mutual in almost every region in the nation when it comes to overall customer satisfaction. See the table below to compare Liberty Mutual vs. State Farm satisfaction scores by region.

Customer Reviews

If you compare Liberty Mutual vs. State Farm in terms of customer reviews, it’s clear that Liberty Mutual struggles with communication. BBB complaints reference rude and demeaning representatives, unclear rate increases, and slow claims processing. Positive reviews for Liberty Mutual highlight representatives that go above and beyond and fair appraisals.

BBB customer reviews for State Farm are equally mixed. Complaints focus on the auto insurance company’s poor customer service representatives and lack of respect for long-time policyholders. Positive customer reviews center around fast claims processing and fair car insurance rates.

Final Thoughts On Ratings And Reviews

Overall, individual experiences with either car insurance company have to do with location. We recommend reading local reviews specific to the insurance agents in your location when considering Liberty Mutual or State Farm. So, which company pulls ahead this round? We have to go with AM Best and J.D. Power on this one and give it to State Farm.

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Liberty Mutual Or State Farm: Our Take

Both Liberty Mutual and State Farm are top providers in the auto insurance industry. Liberty Mutual is available in all 50 states and offers a variety of coverage options and discounts. State Farm has lower insurance costs overall and better ratings from industry leaders. When we compare Liberty Mutual vs. State Farm directly, we think State Farm is the better insurance option in the states where you can get it, but we recommend getting auto insurance quotes from both companies to compare pricing.

Use our tool below to start comparing personalized car insurance quotes and save money.

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Other Top Car Insurance Providers

We recently reviewed the best car insurance companies nationwide, and State Farm and Liberty Mutual were two of the providers that came out near the top of our list with star ratings of 4.7 and 4.6, respectively. Another one of our top picks for car insurance is Geico.

Geico: 4.5 Stars

As the third-largest auto insurer in the country with nearly 14 percent of the market share, Geico is one of our top picks for its extensive coverage with some of the best rates. In addition to standard coverage, you can get things like roadside assistance, rental car reimbursement, and mechanical breakdown insurance.

Geico has competitive discounts for military members, federal employees, student drivers, and more. The company is rated highly across the board, with an A+ BBB rating and an A++ financial strength rating from AM Best. Geico also recently rolled out a new usage-based insurance program to help drivers save even more on car insurance. 

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Liberty Mutual Vs. State Farm: FAQ

Below are some of the most commonly asked questions when comparing Liberty Mutual and State Farm:

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How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

• Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.

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