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State Farm or Liberty Mutual: Which company is best for you?

As two of the biggest insurers in the country, both State Farm and Liberty Mutual have a number of coverages to choose from. Dive into our comparison to see which company comes out on top.

State Farm car insurance

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4.5 Rating from The Zebra Question mark icon

State Farm is the largest auto insurance company in the U.S. with a market share of 16%. With State Farm's network of agents, customers can expect a personalized experience. This popular insurance company also boasts good ratings from reputable third parties and customers alike, with positive assessments of its customer satisfaction and financial outlook, and strong ratings overall in The Zebra's independent customer satisfaction survey.

Pros Cons
  • Lower than average rates
  • Wide range of coverage types
  • Great customer satisfaction scores
  • Local agents across the U.S.
  • Bad for drivers with poor driving records
  • Fewer add-on coverages for those with specialized needs
  • Much more expensive for drivers with poor credit
Learn more

Liberty Mutual car insurance

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3 Rating from The Zebra Question mark icon

Liberty Mutual is a popular insurance carrier that provides a number of bundling options. Available coverage types are similar to those offered by most other major insurance companies, and they offer a wide variety of discount options. However, Liberty Mutual receives a higher number of customer complaints than many competitors. 

Pros Cons
  • Affordable rates for most drivers
  • Wide-ranging coverage options
  • Great customer satisfaction scores
  • Lack of local agents   
  • High number of customer complaints  
Learn more

Which company comes out on top?

State Farm


State Farm comes out ahead in a number of ways, including The Zebra's Customer Satisfaction Survey where State Farm placed third overall for home and auto insurance. 


State Farm vs. Liberty Mutual: car insurance rate comparison

Choosing an auto insurance company can be tricky: rates may vary based on your location, vehicle, and driving record, and companies offer an array of perks. State Farm and Liberty Mutual are two of the top insurers, providing high-quality insurance policies across large portions of the US.

To simplify the process of comparing insurance companies, we've gathered average rates from Liberty Mutual and State Farm. These take into consideration a variety of rating factors, including credit history, driving record, and age. Examine these figures and find the right policy for you.

Want to find out more? Check out our full reviews of State Farm and Liberty Mutual.

Cheapest average rates
Cheapest average rates

The insurer with the cheapest rates is State Farm at $108 per month, significantly cheaper than Liberty Mutual's average of $144 a month


State Farm vs. Liberty Mutual: pricing by credit score

If you have very poor credit, Liberty Mutual could be the best option for you. Drivers with exceptional credit — a score of 800-plus — should lean toward State Farm, which typically beats Liberty Mutual by $532 annually. View typical insurance rates by credit level for State Farm and Liberty Mutual below.

 

RATES BY CREDIT LEVEL: LIBERTY MUTUAL VS. STATE FARM
Credit level State Farm avg. annual premium Liberty Mutual avg. annual premium
Very Poor (300-579) $3,522 $3,228
Fair (580-669) $2,003 $2,276
Good (670-739) $1,613 $2,109
Very Good (740-799) $1,451 $1,878
Exceptional (800-850) $1,260 $1,792

Auto insurance data methodology

The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.

In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.

State Farm vs. Liberty Mutual: rates for high-risk drivers

If you've got an at-fault crash, speeding ticket, reckless driving violation, or DWI in your rearview mirror, State Farm could be a better choice than Liberty Mutual. Each auto insurance company prices policies differently after a violation, so don't be afraid to shop around to figure out which insurer suits you.

 

RATES BY CITATION: LIBERTY MUTUAL VS. STATE FARM
Citation State Farm avg. annual premium Liberty Mutual avg. annual premium
At-fault accident (damage < $1,000) $2,849 $2,776
At-fault accident (damage > $1,000) $1,524 $2,112
DUI/DWI $3,854 $4,182
Reckless driving $2,895 $3,459
Speeding ticket $1,983 $2,068

State Farm vs. Liberty Mutual: rates by age

Auto insurance companies rely on a driver's age to indicate risk, pricing premiums accordingly. An auto insurance policy is commonly more expensive for teen drivers — thanks to their inexperience — and most affordable for middle-aged drivers. Because every car insurance company rates ages differently, it's wise to compare rates and find great coverage.

As a general rule, teen drivers should choose State Farm before Liberty Mutual: STATE FARM offers average yearly savings of $739 versus Liberty Mutual.

 

RATES BY AGE: LIBERTY MUTUAL VS. STATE FARM
Age tier State Farm avg. annual premium Liberty Mutual avg. annual premium
Teens $5,820 $6,559
20s $2,379 $2,686
30s $1,585 $2,686
40s $1,587 $1,926
50s $1,558 $1,793
60s $1,485 $1,746

Aside from finances, State Farm and Liberty Mutual each carry pros and cons, including their customer satisfaction ratings, discount programs, add-ons, and financial stability. Be sure to get quotes and compare rates before purchasing a policy.

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Ratings comparison: State Farm vs. Liberty Mutual

Being among the largest insurance companies in the country, State Farm and Liberty Mutual have third-party ratings going back decades. We've put together a list of some of the most recent ratings to help you determine each company's customer satisfaction level, complaint ratio and fiscal security scores.

State Farm vs. Liberty Mutual
Ratings comparison State Farm Liberty Mutual
Financial strength (A.M. Best) Excellent Good
JD Power (claims satisfaction) Above average Average
JD Power (customer satisfaction) Above average Above average
NAIC rating Above average Poor
The Zebra's editorial review score 4.5 3
The Zebra's Customer Satisfaction Survey 4.5/5 4.2/5

Which company scores best?

State Farm


State Farm receives better scores than Liberty Mutual in all categories, while Liberty Mutual scores a bit higher with customer satisfaction. The Zebra's editorial reviews give State Farm the top spot among these two, coming in at 4.5 to Liberty Mutual's 4.2 out of five.


The Zebra's Customer Satisfaction Survey

The Zebra conducted its own survey to discover how customers view insurance companies based on a number of factors. Below you'll find how both companies performed.

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State Farm

State Farm came in third place overall with a score of 4.5. Find more of the survey highlights below.

  • Scored well among younger drivers
  • Second place for claims satisfaction
  • Third place for ease, customer service, trust and willingness to recommend
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Liberty Mutual

Liberty Mutual came in near the bottom of our survey of fifteen carriers, placing at number fourteen. However, with a score of 4.2, Liberty wasn't far from its nearest competitors and placed better in some categories. Below are some highlights.

  • Scored well in Online Satisfaction (4.3)
  • Older drivers rated the company higher

The Zebra Customer Satisfaction Survey methodology

Findings are based on an online quantitative survey of 4,134 current U.S. auto and home insurance customers, with Census-balanced sampling by age, gender and region. Categories with n=<20 responses are considered insufficient sample size and are not reported. This survey was developed by The Zebra and executed by independent research firm Maru/Blue in 2021.


State Farm vs. Liberty Mutual: discount comparison

Below you can see a head-to-head rundown of discount options for auto insurance.

State Farm vs. Liberty Mutual: discount comparison
Discount comparison State Farm Liberty Mutual
Good student
Multiple policies
Multiple vehicles
Anti-theft device(s)
Anti-lock brake system
Air bags
Good driver
Defensive driver
Student away at school
Driver training
Green vehicles
Affinity membership alum
Advanced purchase
Pay in full
Home owner
eSign or ePay
Telematics
New Vehicle
Annual Mileage
Military

In addition to the discounts listed above, State Farm may offer an additional discount for vehicles made in 1994 or later, depending on the loss experience of the vehicle make and model.

Liberty Mutual offers a number of money-saving discounts based on your method of payment. If unsure, ask a representative about which discounts for which you may qualify. 


Telematics options: State Farm vs. Liberty Mutual

Both State Farm and Liberty Mutual offer telematics programs. Liberty Mutual offers more options than State Farm, meaning that customers may find a better choice for their personal driving needs. Find out more about each company's mobile app selection below. 

State Farm logo
State Farm Drive Safe & Save

State Farm Drive Safe & Save is a good option for safe and low-mileage drivers. The company claims that it can save customers up to 50% on premiums, though these types of savings are most likely to be seen by lower-mileage drivers. The program is available in most states.

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Liberty Mutual RightTrack

Liberty Mutual's telematics offering, RightTrack, follows your driving habits to help determine your rates. The company claims users can save as much as 30% off their rate. The app enjoys a score of 4.5 on the Apple Store and a score of 4.0 on Google Play.

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Liberty Mutual ByMile

Liberty Mutual ByMile is another app offering from the company that is aimed at low-mileage drivers. Sometimes called pay-per-mile — or usage-based — insurance, this program tracks the number of miles driven and customizes rates based on how much you drive. The app currently receives a 4.3 on the Apple Store and a 4.0 on Google Play.

Zebra Tip: Explore Liberty Mutual for telematics offerings


Liberty Mutual has more telematics options overall, offering options for mileage-based programs and for monitoring driving habits. Pay-per-mile programs are great for low mileage drivers, allowing policyholders a lower premium than a traditional car insurance policy. 


Roadside assistance: State Farm vs. Liberty Mutual

Below you'll find a breakdown of the different types of roadside assistance available from each company.

State Farm

State Farm's Emergency Road Service offers the following:

  • Mechanical labor at the place of breakdown
  • Towing of your vehicle to a repair facility,
  • Removal of a stuck vehicle
  • Delivery of gas or oil
  • Assistance with changing a tire or a jumpstart
  • Locksmith services

 

Liberty Mutual

Liberty Mutual offers 24-hour roadside assistance featuring the following:

  • Towing
  • Jump starts
  • Fuel delivery
  • Lockout services
  • Flat-tire changes
tow truck

State Farm vs. Liberty Mutual: home insurance

While both companies have a huge presence in the auto insurance industry, the same goes for homeowners coverage. Each company has unique coverage options and price points. See our comparison to find out which company might be the best fit for your home insurance needs.

State Farm homeowners insurance review

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4 Rating from The Zebra Question mark icon

State Farm has a number of great options for add-on coverage, making them a great option for customers looking for flexible or with unique coverage needs. However, State Farm's average rates tend to be higher than average. Also, the company suffers from a lack of available homeowners discounts — only four discount options at present. State Farm's home insurance options enjoy good ratings from third-party agencies, and the company ranked fifth place overall in The Zebra Customer Satisfaction Survey. Still, homeowners looking for basic insurance with no bells or whistles may wish to look for an alternative.

Learn more about the company's home insurance in our detailed review below.

  • The Zebra Customer Satisfaction Survey — 4.4/5: State Farm was given an above-average rating among the top 15 home insurance providers surveyed.
  • Claims satisfaction (J.D. Power Rating) — Below average: J.D. Power's most recent study rated State Farm as just shy of the industry average for property claims satisfaction.
  • Customer satisfaction (J.D. Power Rating) — Above average: State Farm was awarded an above-average rating for customer satisfaction in J.D. Power's Home Insurance Study.
  • Financial strength — Excellent: A.M. Best rated State Farm as having excellent financial viability, signaling its ability to pay for claims.
  • NAIC Rating — Average: State Farm's home insurance received an average amount of complaints as logged by the National Association of Insurance Commissioners (NAIC).
Learn more

Liberty Mutual homeowners review

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3.5 Rating from The Zebra Question mark icon

With the fourth largest share of the homeowners insurance market, Liberty Mutual has a wide footprint. The company has a variety of coverage options.

  • The Zebra Customer Satisfaction Survey — 4.3/5: Liberty Mutual recieved a 4.3 out of 5 in The Zebra's survey of customer satisfaction. 
  • Claims satisfaction (J.D. Power Rating) — Below average: In J.D. Power's most recent property claims satisfaction report, Liberty Mutual came in just below the industry average.
  • Customer satisfaction (J.D. Power Rating) — Below average: Liberty Mutual fell below the industry average in J.D. Power's customer satisfaction study.
  • Financial strength — Good: According to AM Best, Liberty Mutual's financial outlook was rated at an "A".
  • NAIC Rating — Good: Fewer complaints were logged by the NAIC in regards to Liberty Mutual's homeowners insurance, falling just below the national complaint index.
Learn more

Which company comes out on top?

Tie


In this case, both companies come out very close in terms of ratings and product offerings. As a prospective customer, you should compare quotes and coverage options from each company to see which is best for your unique coverage needs.


State Farm vs. Liberty Mutual: home insurance rate comparison

The average annual home insurance rates for State Farm are $1,356, while Liberty Mutual comes in slightly higher at $1,414. Liberty Mutual and State Farm both differ in their underwriting methods, so it's important to remember that your quotes may not match these exactly when you are searching for home coverage. 

Similar to car insurance, homeowners insurance prices can vary based on certain personal and location factors. Companies use not only your insurance history when putting together your quotes, but also historical data for the neighborhood, including crime rates, location to fire fighting services, and the likelihood of natural disasters.

Cheapest average rates
Cheapest average rates

The insurer with the cheapest home insurance rates is State Farm at around $113 per month, somewhat cheaper than Liberty Mutual's average of $133 per month.

Homeowners insurance data methodology

The homeowners insurance rates published in this guide are based on The Zebra's analysis of the cost of home insurance in every U.S. ZIP code. These rates are based on a sample user profile: a 45-year-old married homeowner living in a 2,500-square-foot single-story home built in 2011 with these coverage levels:

  • $200,000 for the dwelling
  • $20,000 for other structures
  • $100,000 for personal property
  • $100,000 for personal liability
  • $1,000 deductible

To generate pricing for particular rating factors, we adjusted the homeowner profile based on common pricing factors used by major home insurance companies. These factors include location, coverage limits, claims record and others.


State Farm vs. Liberty Mutual: homeowners discount comparison

Both State Farm and Liberty Mutual provide discounts to homeowners who meet certain criteria. While these discounts are not as plentiful as many competitor companies, they may still help customers find significant savings.

STATE FARM VS. LIBERTY MUTUAL HOMEOWNERS DISCOUNT COMPARISON
Discount comparison State Farm Liberty Mutual
Claims free
Recent home buyer
Multi-policy
Early signing
Newer/more durable roof
Protective devices (smoke/burglar alarms, etc...)
Paid in full
Early signing
Auto pay

Zebra tip: Check out Liberty Mutual if you are seeking home insurance discounts


Liberty Mutal offers more discount options than State Farm for qualifying customers, though this doesn't necessarily mean that they will be cheaper for everyone.


Other insurance products and bundling options

Both State Farm and Liberty Mutual have many insurance products available. Many of these can be bundled together for additional savings. See how the product offerings from State Farm and Liberty Mutual compare below.

State Farm vs. Liberty Mutual: other insurance products
Other products State Farm Liberty Mutual
Boat insurance
Condo insurance
Life insurance
Homeowners insurance
Travel trailer insurance
Renters insurance
RV insurance
Motorcycle insurance
Mobile home insurance
Umbrella
Offroad vehicles and ATVs

Find the best insurance policy for your needs.

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RECENT QUESTIONS

My car was towed by an apartment complex, will State Farm reimburse me for the towing cost?

Roadside assistance covers towing but it won't cover your car being towed by someone else. Your insurance company will not cover the cost of your car being towed from parking in the wrong location.
Aug 20, 2019 Crosby, TX

Do I have to contact my insurance after an accident with a rental car?

You've taken all of the right steps to have the claim taken care of. The only thing you need to do is contact your insurance company.
Aug 17, 2018 Colorado Springs, CO

What could be the reason State Farm increased my premium?

Since it is policy-specific, State Farm will be the only one who can answer why the rate increased by 39%. I am not aware of any insurance law in California that would cause an increase of 39%.
Aug 4, 2019 San Jose, CA

Can my insurance agent list me as single even if I'm married?

No. You should be able to be listed as married and just have your wife listed as an excluded driver on your policy.
Mar 19, 2018 Dallas, Texas

Renata Balasco photo
Renata BalascoContent Strategist

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist. Her expertise in property and casualty insurance informs her work in creating expert home and auto insurance guides to educate shoppers. 

Renata previously worked as a content specialist for Lifespan, the largest hospital system in the state of Rhode Island. She holds a bachelor’s degree in French Language and Communications from The University of Rhode Island.

Renata's work has been cited by Car and Driver, The Balance and Fox Business

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.