Liberty Mutual vs. State Farm: Which Is the Best? (2024)

State Farm’s low rates, extensive coverage options, and superior claims service earn it an Insurify Quality (IQ) Score of 9.3 out of 5, higher than Liberty Mutual’s 7.7.

Janet Berry-Johnson
Janet Berry-Johnson
  • 8+ years writing about insurance, taxes, and personal finance

  • Certified public accountant

Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.

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Danny Smith
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Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Konstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated July 14, 2024

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Choosing a car insurance company can be overwhelming. State Farm and Liberty Mutual are two options. Both are leaders in the insurance industry with large market shares.

You may know State Farm for its extensive network of independent agents, but this hands-on approach sometimes comes with higher premiums. Liberty Mutual focuses on technology-driven services but may offer less extensive coverage options than its competitors.

In this article, we’ll highlight the differences between State Farm and Liberty Mutual and discuss why it’s important to compare rates, customer service, discounts, and coverages when deciding which insurer to buy a policy from.

Quick Facts
  • State Farm is the largest insurance company in the United States.

  • Liberty Mutual stands out for its tech-driven solutions and might appeal more to digitally savvy customers.

  • Both insurance companies offer a wide variety of available coverage options and discounts.

Liberty Mutual vs. State Farm: The verdict

State Farm is the winner due to its higher customer satisfaction ratings and lower rates. Liberty Mutual is more widely available but only by a small margin. However, State Farm doesn’t offer new-car insurance policies in Massachusetts or Rhode Island, while Liberty Mutual is available in all 50 U.S. states and the District of Columbia.[1]

Here’s how the two companies stack up:

FactorLiberty MutualState Farm
Insurify Quality (IQ) Score7.79.3
J.D. Power customer satisfaction score799833
Average quote: liability only$112$55
Number of available discounts1310
Number of states where it operates5048
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

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Liberty Mutual

Liberty Mutual is the sixth-largest private passenger auto insurer in the U.S., with a market share of 4.93%, according to the National Association of Insurance Commissioners (NAIC) 2022 Market Share Report.[2]

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User Reviews
2.9
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.7/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$112/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$231/mo

In business for more than 100 years, Liberty Mutual offers auto, homeowners, condo, renters, flood, life and other insurance products. Policyholders have access to numerous discounts, including bundling, good student, military, student-away-at-school, claims-free, violation-free, and multi-car discounts. Liberty Mutual has an A rating for financial strength from A.M. Best and an A+ rating from the Better Business Bureau. However, the company has three times the expected rate of complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index, and low ratings on consumer review sites Trustpilot and Sitejabber.

Pros
  • Wide range of available discounts

  • Accident forgiveness available

Cons
  • Many negative reviews and customer complaints

  • Premiums are relatively high compared to industry average

Read more driver reviews of Liberty Mutual
Wanda - July 13, 2024
Verified

Wanda

Excellent company.

Melinda - July 13, 2024
Verified

Stay Away from Liberty Mutual

Liberty Mutual starts out with reasonable rates, but then the rates double.

John - July 13, 2024
Verified

Fair

They raised my premium to a point where I could not afford it.

State Farm

State Farm is the top private passenger auto insurer in the U.S., with a market share of 16.78%, according to the NAIC’s 2022 Market Share Report.[2]

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User Reviews
3.3
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$55/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$120/mo

State Farm has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in all 50 states, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

Read more driver reviews of State Farm
Brenda - July 14, 2024
Verified

Again, Very Easy to Work With

They have been very easy to work with.

Ed - July 14, 2024
Verified

Compare

I have been with State Farm for over forty years and have nothing but good things to say about them. However, the rates keep going up, so the advice is to compare.

John - July 14, 2024
Verified

Good

It wasn't bad for years, but recently the rates have skyrocketed.

Liberty Mutual RightTrack vs. State Farm Drive Safe & Save

Both Liberty Mutual and State Farm offer telematics programs, which track your driving and can result in discounts for safe driving.

Liberty Mutual’s RightTrack program tracks things like acceleration, braking, and when you drive, via a mobile app or a device installed on your vehicle. You earn a 10% discount just for enrolling and can save up to 30% on your car insurance by demonstrating safe driving habits.[3]

Drive Safe & Save by State Farm also tracks your trips via a mobile app. You get a discount for enrolling and can save up to 30% based on how you drive.[4]

Liberty Mutual vs. State Farm: Which is the cheapest?

State Farm offers the cheapest average rates for both liability-only and full-coverage auto insurance policies. We’ll detail the premium differences below, but keep in mind that your insurance quote will vary based on your driving record, age, credit score, and other rating factors.

State Farm: Cheapest for drivers with a clean driving record

State Farm has the cheapest average rates for people with a clean driving record.

A liability-only policy costs an average of $55 per month compared to $112 per month through Liberty Mutual. For full coverage, State Farm’s average monthly premium is $120 compared to $231 from Liberty Mutual.

Driver TypeLiberty MutualState Farm
Clean driving record$112$55
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with a speeding ticket

State Farm wins this category as well, with average monthly rates significantly cheaper than Liberty Mutual’s for a driver with one speeding ticket on their record.

Driver TypeLiberty MutualState Farm
Drivers with a speeding ticket$159$63
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for teen drivers

State Farm offers the cheapest rates for teen drivers, potentially due to its variety of discounts available to young drivers and their families, including discounts for good students, taking a driver training course, and being ticket- and accident-free for three years.

Driver TypeLiberty MutualState Farm
18-year-old$211$88
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with bad credit

State Farm comes out ahead in this pricing category as well, offering the cheapest average monthly premiums for drivers with poor credit.

Driver TypeLiberty MutualState Farm
Drivers with bad credit$136$81
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for senior drivers

State Farm offers the cheapest average monthly premiums for senior drivers. Its rates for drivers in their 60s and 70s are lower than those offered by Liberty Mutual.

Driver TypeLiberty MutualState Farm
Senior drivers$88$40
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: Liberty Mutual vs. State Farm

Both State Farm and Liberty Mutual offer basic coverage options to protect drivers, passengers, and vehicles, including:

Here are a few other add-ons you might look for in your car insurance policy.[6] [7]

CoverageLiberty MutualState Farm
Gap insuranceYesNo
Rental reimbursementYesYes
Roadside assistanceYesYes
Rideshare insuranceOnly in select statesYes
Travel expenses coverageNoYes

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Compare discounts: Liberty Mutual vs. State Farm

Liberty Mutual’s average rates might be higher in every category, but your premiums could be lower if you qualify for one or more of Liberty Mutual’s discounts. Both State Farm and Liberty Mutual offer several discount programs to help customers save money, such as those for maintaining a clean driving record or bundling car insurance with your home insurance.

Here’s how the two insurance companies compare when it comes to discounts offered.

DiscountLiberty MutualState Farm
Clean driving recordYesYes
Defensive driving courseOnly available in some statesYes
Multi-policyYesYes
Multi-carYesYes
Low mileageNoNo
Telematics (safe driving app)YesYes
Anti-theft deviceNoYes
New carNoNo
Military/affiliationYesNo
Good studentYesYes
LoyaltyNoNo
Auto payYesNo
Student away at schoolYesYes
HomeownerYesNo
Alternative fuelOnly available in some statesNo

Liberty Mutual vs. State Farm FAQs

An apples-to-apples comparison of two different insurance policies can be tough. Below, we address some of the most frequently asked questions for policyholders comparing these two insurance giants.

  • Is State Farm bigger than Liberty Mutual?

    Yes. State Farm is bigger than Liberty Mutual in terms of market share and total volume of premiums written. State Farm is one of the largest insurance companies in the U.S. in several insurance products.[2]

  • Which insurer is State Farm’s biggest competitor?

    State Farm’s biggest competitor is Progressive. State Farm has a 16.78% market share, compared to 14% for Progressive. Additionally, State Farm totaled $46.7 billion in direct premiums written in 2022, compared to $38.9 billion for Progressive.[2]

  • Is Liberty Mutual good at paying claims?

    Liberty Mutual has an AM Best financial strength rating of A (Excellent), which indicates financial strength and a solid ability to meet its claims obligations.[8] However, online customer reviews show many customer complaints about claims service.

    According to the J.D. Power 2023 U.S. Auto Claims Satisfaction Study, Liberty Mutual earned 866 out of 1,000 possible points — lower than the industry average of 878 points. State Farm, on the other hand, earned 891 out of 1,000 points.[9]

  • What makes State Farm different from competitors?

    State Farm sets itself apart through its extensive network of local agents and a focus on personalized customer service. It’s one of the best auto insurance companies for customers who want to have a direct relationship with their agent rather than relying on digital or call-center-based customer service models.

Sources

  1. State Farm. "Car Insurance Quotes in Your State."
  2. NAIC. "2022 Market Share Report."
  3. Libertymutual.com. "RightTrack®."
  4. Statefarm.com. "Drive Safe & Save™ – Safe Driver Discounts."
  5. III. "What is covered by a basic auto insurance policy?."
  6. Statefarm.com. "Car Insurance Coverage Options."
  7. Libertymutual.com. "Main Types of Car Insurance Explained."
  8. Ambest.com. "AM Best Affirms Credit Ratings of Liberty Mutual Holding Company Inc. and Subsidiaries."
  9. Jdpower.com. "2023 U.S. Auto Claims Satisfaction Study."
Janet Berry-Johnson
Janet Berry-Johnson

Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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