Cost and Coverage Comparison (2023)

In this article, we at the Guides Auto team compare Liberty Mutual vs. State Farm based on each company’s auto insurance coverage, discounts and overall customer experience. Both are large insurers that made the list in our review of the best car insurance companies.

When you’re looking for the right coverage for your budget and needs, we recommend comparing car insurance quotes from several providers.

To accurately rate Liberty Mutual Insurance and State Farm, we examined customer reviews, cost data, industry reports and each provider’s availability. Once we had all that information, we aggregated it to provide overall scores and scores by category.

Is Liberty Mutual Better Than State Farm?

Compare our ratings across five metrics for Liberty Mutual and State Farm in the table below.

Here are some highlights for Liberty Mutual:

• Strong industry ratings
• Lots of useful add-on coverage options
• Wide array of discounts
• Affordable coverage for young drivers

Read more: Liberty Mutual Insurance review

Here are some highlights for State Farm:

• 19,000 local insurance agents throughout the country
• Stellar financial strength rating from AM Best
• Many discounts for young drivers and teen drivers
• Lower rates for auto and home insurance

Read more: State Farm insurance review

State Farm held 15.93% of the market share in 2021, making it the largest car insurance company in the country. According to the National Association of Insurance Commissioners (NAIC), Liberty Mutual was the sixth-largest provider, holding 4.88% of the market share. In addition to the six standard types of car insurance, both insurers offer alternative coverages like classic car insurance and boat insurance.

Compare Liberty Mutual and State Farm

The table below lists key details about State Farm and Liberty Mutual, including when they were founded and how they perform in industry ratings.

Liberty Mutual and State Farm are large national insurers with enough types of coverage for almost every customer looking for auto insurance. State Farm offers its usage-based insurance program in more states than Liberty Mutual as well as trip-interruption coverage Liberty Mutual doesn’t offer.

Liberty Mutual offers several add-on options State Farm doesn’t, including:

• Lifetime repair guarantee
• Deductible fund
• New car replacement insurance
• Better car replacement insurance
• Original parts replacement
• Accident forgiveness

Source: Automoblog

Liberty Mutual and State Farm Coverage Comparison

The table below lists the types of car insurance coverage available from Liberty Mutual and State Farm. Each provider offers the six standard types of coverage, as well as several optional add-ons.

*Liberty Mutual offers rideshare insurance through Uber and Lyft in select states.

Liberty Mutual and State Farm Usage-Based Insurance Comparison

Both State Farm and Liberty Mutual have usage-based car insurance programs, also known as telematics insurance. These programs typically use a mobile app or a plug-in device to track your driving habits and encourage safe driving. After a certain period of time, the provider uses the data collected to calculate a discount on your car insurance premium.

The table below details each company’s telematics program.

Neither RighTrack nor Drive Safe & Save will raise your car insurance rates if your driving doesn’t improve. Drive Safe & Save is available in six more states than RighTrack.

State Farm and Liberty Mutual are known for their large selection of discounts. The table below shows the car insurance discounts each company offers.

Some additional Liberty Mutual discounts include:

• Preferred payment: Available for those who enroll in automatic payments or pay for their car insurance policies in one or two installments
• Online purchase: Available to those who get a free quote online and then purchase an auto insurance policy

Liberty Mutual vs. State Farm: Bundling Options

Liberty Mutual and State Farm offer discounts to policyholders who purchase more than one insurance product. This means if you have auto insurance and bundle it with homeowners insurance, renters insurance or condo insurance from the same provider, you can reduce your overall cost.

In the J.D. Power 2022 U.S. Insurance Shopping Study^SM, State Farm ranked the highest among large insurers for overall customer satisfaction. The company earned 885 out of 1,000 points in the study. Liberty Mutual ranked third, earning 860 points.

Compare State Farm and Liberty Mutual: Customer Reviews

The table below shows average customer review ratings for each company from the BBB and Trustpilot. Though these scores are low, keep in mind that a very small portion of each provider’s customer base left reviews.

We also included the App Store and Google Play customer reviews for each insurer’s mobile app.

Our review team reached out to Liberty Mutual and State Farm for comments on these scores but did not receive a response.

We believe State Farm and Liberty Mutual are both excellent choices for auto insurance coverage. The two companies have high ratings from AM Best, indicating good financial stability and their ability to pay out insurance claims. Liberty Mutual offers a larger selection of discounts, while State Farm ranks higher in industry reports that measure customer satisfaction.

State Farm vs. Liberty Mutual: Top Picks

Now that we’ve compared Liberty Mutual and State Farm, here are a couple other auto insurance providers we recommend. Compare car insurance quotes from many providers to find the best rates.

Erie Insurance: Affordable for Basic Coverage

In conducting our in-depth review of the best companies in the insurance industry, we found that average rates from Erie Insurance were 28% cheaper than the national average. But Erie is a regional provider, so even though it’s one of the cheapest car insurance companies in our review, its coverage is only available in 12 states and Washington, D.C.

Read more: Erie Insurance review

Travelers: Most Coverage Options

Though only about 1.5% of consumers in our August 2022 car insurance survey reported having Travelers policies, the company tied the survey’s average for customer satisfaction. Policyholders rated the company an average of 4.2 out of 5.0 stars. Travelers offers a sizable number of insurance options, including gap insurance, new car replacement coverage and two levels of roadside assistance.

Read more: Travelers insurance review

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

**Data accurate at time of publication.