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Liberty Mutual Vs. State Farm

Which car insurance provider should be your first choice?

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06/18/2023 08:48 PM

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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 with this in-depth comparison of the two well-known auto insurance companies.

If you’re ready to shop for car insurance, we recommend comparing prices between the best car insurance providers in your area, including Liberty Mutual and State Farm.

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Liberty Mutual Vs. State Farm Highlights

Our research found that Liberty Mutual auto insurance is the best car insurance company for teen drivers and State Farm auto insurance is the best 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.

CriterionLiberty MutualState Farm
Overall Star Rating4.44.7
SuperlativeBest for TeensBest Overall Provider
Availability50 states48 states*
Customer Service4.14.7
AM Best Financial Strength RatingAA++
J.D. Power Claims Satisfaction870/1,000882/1,000
Mobile App Google Play Rating4.74.7

*Although State Farm advertises nationwide availability, the company is no longer taking on new customers in Massachusetts or Rhode Island. Find out more about Massachusetts car insurance and Rhode Island car insurance in our state insurance roundups.

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:

Insurance CoverageLiberty MutualState Farm
Bodily Injury Liability (BI)
Property Damage Liability (PD)
Personal Injury Protection (PIP)
Medical Payments (MedPay)
Uninsured/Underinsured Motorist (UM/UIM)
Roadside Assistance
Towing Services
Rental Car Reimbursement
Rideshare Insurance
Accident Forgiveness
Gap Insurance
Liberty Mutual Deductible Fund®
Teachers Car Insurance
Mexico Tourist Car Insurance
New Car Replacement
Better Car Replacement
Lifetime Repair Guarantee
Original Parts Replacement

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

Liberty Mutual Standout Coverage

  • 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

  • Gap insurance: Although both car insurance companies offer gap insurance, State Farm’s gap insurance is called Payoff Protector® and is available 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.

Liberty Mutual Vs. State Farm: Cost

If you’re wondering how much auto insurance will cost with Liberty Mutual or State Farm, the answer is: it depends. Our cost research shows that good drivers pay an average of $123 per month or $1,481 per year for a full coverage policy with State Farm, which is far below the national average. On the other hand, we were quoted $215 per month or $2,580 per year for a full coverage policy from Liberty Mutual.

The final cost you pay for car insurance varies based on many factors, including your age, location, driving history, and ultimately what provider you choose to underwrite your insurance policy.

Liberty Mutual Vs. State Farm Car Insurance Discounts

Our research into Liberty Mutual vs. State Farm car insurance shows that State Farm is generally more affordable 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.

Common DiscountsLiberty MutualState Farm
Multiple Vehicle
Multiple Policy
Good Student
Safe Driver
Driver Training
Vehicle Safety
Student Away At School
Defensive Driving
Passive Restraints
Early Shopper
Alternative Energy
Automatic Payment
Pay in Full
Online Purchase
Paperless Policy

Bundling Car Insurance

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

Insurance ProductsLiberty MutualState Farm
Auto Insurance
Home Insurance
Renters Insurance
Motorcycle Insurance
RV Insurance
Boat Insurance
Umbrella Policies
Flood Insurance
Life Insurance
Accident Insurance
Pet Insurance
Identity Theft Protection
ATV Insurance
Motorhome Insurance

State Farm Drive Safe & Save™ Vs. Liberty Mutual RightTrack®

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

State Farm Drive Safe & SaveLiberty Mutual RightTrack
Monitors driving through the Drive Safe & Save mobile app, plug-in device, or OnStarMonitors driving through the Liberty Mutual mobile app or plug-in device
Up to 30 percent off your auto insurance for safe drivingGuaranteed savings between 5 and 30 percent
3.6 stars on Google Play3.9 stars on Google Play

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.

Liberty Mutual Vs. State Farm: Ratings And Reviews

State Farm has Liberty Mutual beat when it comes to expert ratings, with better scores from AM Best and the Better Business Bureau (BBB). This tells us that State Farm is more financially sound to pay out claims than Liberty Mutual. State Farm also has more transparent business practices according to the BBB.

Additionally, according to J.D. Power’s 2022 U.S. Auto Insurance Study℠, State Farm beats 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.

RegionState FarmLiberty Mutual
New England838806
New York831798
North Central848807

Liberty Mutual Vs. State Farm 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 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 your location when considering Liberty Mutual or State Farm. So, which company pulls ahead this round? We have to go with AM Best and BBB on this one and give it to State Farm.

Liberty Mutual Vs. State Farm: Conclusion

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

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Liberty Mutual Vs. State Farm Competitors

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 4.4, respectively.

Geico: 4.6 Stars

As the second-largest auto insurer in the country, Geico is tied as our second choice for insurance for its extensive coverage and low 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. And just last year, Geico rolled out a new usage-based insurance program to help drivers save even more on car insurance. Read more in our full Geico auto insurance review

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.