Compare Liberty Mutual vs. State Farm: Quotes, Discounts (2023)

Liberty Mutual vs. State Farm: A Summary

Liberty Mutual and State Farm are among the most popular names in the car insurance industry. Millions of customers have chosen these insurance providers for their strong products, but which one is right for you? We’ve lined up all of the data so you can compare car insurance options and make an informed decision.

Insurify Composite Score

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

Liberty Mutual

Offering insurance for homes, vehicles and more, Liberty Mutual provides many benefits and discounts for its customers. These include an easy-to-use mobile app, the RightTrack telematics discount, multiple coverage options, vanishing deductibles, rental reimbursement, and roadside assistance with towing.

State Farm

State Farm Insurance is the leading car insurance company in the country by market share. The insurer has numerous discounts and ways to save, like discounted home and auto insurance bundles or the Drive Safe and Save telematics discount that rewards you for good driving habits.

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Liberty Mutual ranked number seven on our top 10 list for its exceptional accident forgiveness product. While State Farm didn’t make the list, it provides best-in-class coverage for rideshare drivers concerned with getting a good deal so that they can keep more of those side-hustle profits. In addition, both companies offer robust telematics discounts for safe drivers.

Compare Liberty Mutual vs. State Farm: Which Is Cheaper?

State Farm was the consistent winner, with cheaper rates in every category measured. For instance, when you look at the average rates from above, Liberty Mutual’s monthly rate is $247, and State Farm’s monthly rate is $52. Further analysis reveals that, on average, Liberty Mutual’s insurance policies are nearly five times more expensive than State Farm’s.

Cheapest Car Insurance Table

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State Farm’s impressive low rates are part of the reason it’s been the number one auto insurance company in America for three-quarters of a century. Conversely, Liberty Mutual would argue that its target market is primarily concerned with quality coverage, and the price would only be considered after its superior insurance products and customer service.

Compare Liberty Mutual vs. State Farm Car Insurance by Age

Age plays a key role in the cost reflected on your insurance quote because insurance agents and companies believe that experienced drivers are generally safer drivers. That’s why teens and drivers under 25 pay the most expensive car insurance rates, while policyholders with decades behind the wheel pay a fraction of what the younger drivers do.

When you look at the table below, you’ll notice that Liberty Mutual and State Farm’s rates go down with age until drivers retire. In fact, drivers in their 60s for both companies enjoy the best rates, and then as they hit the golden years, the rates jump up slightly. Liberty Mutual’s lowest rate was $163, and State Farm’s was $43.

Compare Liberty Mutual vs. State Farm Car Insurance by Gender

Another element that might influence your vehicle insurance premiums is your gender. In general, the difference in auto insurance premiums between men and women is slight, although it might be more significant with particular insurance providers. Statistically, younger men are riskier drivers than women, so insurers charge slightly more to adjust for the added risk.

Liberty Mutual charges men seven percent more than it does women, a $17 per month or

$204 per year discrepancy. Likewise, State Farm bumps the price up eight percent for men. However, the difference is only $4 per month because State Farm’s overall rates are much lower. And State Farm beat the national average for both sexes while Liberty tripled the rates.

Which is cheapest for men?

For men, State Farm is the way to go. At $54 per month, State Farm is an astounding 79 percent cheaper than Liberty Mutual, translating to $202 per month and a phenomenal $2,424 per year. Men with a firm grip on their wallets will have a tough time opting for Liberty Mutual when State Farm beats the company and the national average by such wide margins.

Which is cheapest for women?

Women looking for budget-friendly car insurance should consider State Farm. With an average rate of $50 per month, State Farm bests the national average and allows women to lock in a price that’s a fourth the cost of Liberty Mutual.

Compare Liberty Mutual vs. State Farm Car Insurance by Mileage

Typically, high yearly mileage will raise your vehicle insurance costs—at least with certain auto insurance providers. This is because auto insurance companies calculate your rates by analyzing your risk factors, and driving longer distances increases your chances of being in a car accident.

At Liberty Mutual, your annual mileage matters much more to your final car insurance rate than it does at State Farm. In particular, Liberty Mutual’s drivers with the most yearly miles pay $39 per month or $468 more than those who drive the least miles. Conversely, no matter how much you drive at State Farm, the rates are about the same with only a dollar worth of difference.

Which is cheapest for drivers with high mileage?

If you put a lot of miles on your car, State Farm is a far better choice than Liberty Mutual. People who drive and commute more than average will pay over five times as much at Liberty Mutual. At the same time, those who pick State Farm have an average monthly rate of $50, representing a $19 per month or $228 savings over the national average.

Which is cheapest for drivers with low mileage?

State Farm is once again the right choice for drivers with relatively low annual miles. State Farm is far below the national average at both the 5,000 and 10,000-mile level and less than a fourth the cost of State Farm. Therefore, choosing State Farm over Liberty Mutual could result in yearly savings between $2,184 and $2,304.

Compare Liberty Mutual vs. State Farm Car Insurance by Credit Score

Drivers with exceptional credit scores usually enjoy the best auto insurance prices, but those with lower credit scores have fewer alternatives for cost-effective insurance. However, even if you have imperfect credit, you can go to Insurify for reasonable car insurance rates.

The data from both companies follow the same trajectory, with drivers who have excellent credit getting the cheapest rate and the price going up as the credit scores go down. Although State Farm had the most drastic jumps for those with low credit, Liberty Mutual was still the costlier company for all credit levels.

Which is cheapest for good credit?

State Farm is the carrier to pick with if you have stellar credit. At State Farm, excellent credit and good credit save more than 25% off the national average. When you compare State Farm’s rates to Liberty Mutual, you will save over $165 per month at both levels, translating to a whopping $1,980 per year.

Which is cheapest for bad credit?

If you’re building your credit, State Farm will be a better option than Liberty Mutual. However, State Farm’s policyholders with low credit pay more than double their average credit counterparts. Even so, State Farm’s rate for low credit drivers is 15 percent above the national average, but nearly a third the cost of Liberty Mutual.

Compare Liberty Mutual vs. State Farm Car Insurance by Driving Record

An accident-free driving record will always get the best rates that an insurer offers. On the other hand, a single speeding ticket, accident, or DUI will surely make your rates otherwise higher than you would pay with a clean record.

When you have a less-than-perfect driving record, finding a fair price becomes even more difficult. Fortunately, insurance providers like State Farm offer competitive rates even when your record has a mishap or two. State Farm is far below the average for all scenarios we measured relating to driving history, while Liberty Mutual was significantly above the national average.

Which is cheapest for good drivers?

Drivers with clean records should choose State Farm to realize a possible savings of $189 per month or over $2,268 per year. In particular, Liberty Mutual is almost four times the national average price while State Farm beats it by 24 percent. The difference is so drastic that Liberty Mutual is a tough sell for those looking for rock-bottom rates.

Which is cheapest after a speeding ticket?

Even with a speeding ticket, State Farm is $29 per month cheaper than the national average. If you have a speeding violation on your record, Liberty Mutual’s $279 is over three times the national average of $88. If drivers were to decide based on these numbers, anyone with a speeding ticket is darting to State Farm.

Which is cheapest after an accident?

Despite its best-in-class accident forgiveness, Liberty Mutual could not compete with State Farm’s discount-heavy pricing. At $65 per month, State Farm’s price could save you over $200 per month or $2,400 per year. Also, State Farm’s drivers do pretty well against the other competitors because they snag a rate that’s two-thirds the national average cost.

Which is cheapest after a DUI?

If you have a DUI, you may still find unbelievably low rates with State Farm. Actually, at $75 per month, State Farm’s average monthly rate for DUI is only $8 more than the national average for drivers with a clean record, simply amazing. In contrast, Liberty Mutual is over four times the national average, so choosing State Farm could save you $4,740 per year.

Liberty Mutual vs. State Farm Car Insurance: What discounts does each offer?

Our Methodology and How We Compared Liberty Mutual and State Farm

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.

Frequently Asked Questions: Liberty Mutual vs. State Farm