State Farm vs Liberty Mutual: Which is Better for You?
Read on to see which company is best for you.
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
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.
Liberty Mutual car insurance
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.
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 prices 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.
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|
|Very Good (740-799)||$1,451||$1,878|
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|
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|
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.
|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|
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.
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
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 4,794 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 2023.
|Discount comparison||State Farm||Liberty Mutual|
|Anti-lock brake system||✓|
|Student away at school||✓||✓|
|Affinity membership alum||✓|
|Pay in full||✓|
|eSign or ePay|
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 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.
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.
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.
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'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 offers 24-hour roadside assistance featuring the following:
- Jump starts
- Fuel delivery
- Lockout services
- Flat-tire changes
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
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).
Liberty Mutual homeowners review
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.
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.
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.
|Discount comparison||State Farm||Liberty Mutual|
|Recent home buyer||✓|
|Newer/more durable roof||✓||✓|
|Protective devices (smoke/burglar alarms, etc...)||✓|
|Paid in full|
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.
|Other products||State Farm||Liberty Mutual|
|Travel trailer insurance||✓||✓|
|Mobile home insurance||✓||✓|
|Offroad vehicles and ATVs||✓||✓|
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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 editorial 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.