Liberty Mutual vs. USAA: Pros & Cons (2021)
Our Liberty Mutual vs. USAA auto insurance guide will help you choose between two companies with strong financial futures. USAA auto insurance rates are cheaper on all of our comparison points, including age and credit score, but Liberty Mutual has great discounts to offset their higher rates. Keep in mind that USAA only offers coverage to active, inactive, and retired military members and their immediate families.
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UPDATED: Mar 9, 2021
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- USAA has cheaper auto insurance rates than Liberty Mutual; however, USAA offers auto insurance only to active, inactive, and retired military members and their immediate family members
- Liberty Mutual has an impressive number of discounts and substantial savings of up to 35 percent
- USAA auto insurance for teen drivers is 57 percent cheaper than Liberty Mutual
- Liberty Mutual drivers that get traffic violations will have an increase in rates, but not as harshly as USAA’s increases
In our Liberty Mutual vs. USAA auto insurance guide, we examine rates by your particular characteristics: age, gender, marital status, driving record, and credit score. We also compare discounts and ratings from credible agencies that rate all of the best auto insurance companies.
Keep reading to compare Liberty Mutual insurance and USAA insurance, or enter your ZIP code to find affordable auto insurance rates in your area.
Is Liberty Mutual auto insurance or USAA auto insurance cheaper based on age?
The older we get, the more driving experience we have. Auto insurance companies use age as one of the most influential factors in determining your car insurance rates.
It’s legal to base auto insurance rates on marital status and gender in most states; however, some have outlawed it. Let’s compare Liberty Mutual and USAA auto insurance rates based on age, gender, and marital status.
|Age, Gender, and Marital Status||Liberty Mutual Average Annual Rates||USAA Average Annual Rates|
|Single 17-year-old female||$11,621||$4,808|
|Single 17-year-old male||$13,719||$5,386|
|Single 25-year-old female||$3,960||$1,989|
|Single 25-year-old male||$4,503||$2,126|
|Married 35-year-old female||$3,803||$1,551|
|Married 35-year-old male||$3,857||$1,540|
|Married 60-year-old female||$3,445||$1,450|
|Married 60-year-old male||$3,681||$1,449|
USAA auto insurance rates are 57 percent cheaper than Liberty Mutual auto insurance rates for drivers ages 25 and older.
Coming in at 57 percent cheaper than Liberty Mutual, USAA is the better choice if you have a teen driver on your policy.
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Is Liberty Mutual auto insurance or USAA auto insurance cheaper based on driving record?
Speeding tickets, accidents, or DUIs on your driving record will raise your car insurance rates no matter what company you pick because you become a higher-risk driver.
|Group||Liberty Mutual Average Annual Rates||USAA Average Annual Rates|
|With one speeding violation||$5,701||$2,193|
|With one accident||$6,205||$2,516|
|With one DUI||$7,613||$3,506|
In general, USAA has cheaper auto insurance rates than Liberty Mutual for drivers with any type of driving record.
However, USAA is less punitive with their customers if they get a speeding ticket. If you get a speeding ticket while with USAA, expect your rates to increase by only 13 percent.
Causing an accident will increase your USAA auto insurance rates by 30 percent, and if you get a DUI, your rates will increase by more than 80 percent.
Liberty Mutual and USAA increase their rates by the same amount if you get cause an accident: 30 percent. But, if you get a speeding ticket while with Liberty Mutual, your rates will increase by 19 percent, which is more than USAA will increase your rates.
Both USAA and Liberty Mutual take DUIs very seriously, but Liberty Mutual will increase your rates by only 59 percent compared to USAA’s 81 percent.
Is Liberty Mutual auto insurance or USAA auto insurance cheaper based on credit score?
A good credit score can drop in a matter of months if you experience some type of financial trauma such as medical debt or going through a divorce.
In most states it is legal for auto insurance companies to base rates on your credit score; however, some are outlawing this along with basing rates on gender and marital status.
Based on the assumption that those with higher credit scores are more responsible and overall safer drivers less likely to file a claim, car insurance companies justify using your credit score to determine your rates.
Let’s take a look at how Liberty Mutual and USAA address rates for drivers with low credit scores.
|Credit History||Liberty Mutual Average Annual Rates||USAA Average Annual Rates|
|Good Credit (670-739)||$4,388||$1,821|
|Fair Credit Score (580-669)||$5,604||$2,220|
|Poor Credit Score (300-579)||$8,802||$3,691|
Again, USAA comes in cheaper than Liberty Mutual if you have bad credit.
If your credit score tanks while with either company, expect to pay more than twice as much as drivers with good credit.
Before you judge these two companies’ rates based on credit score alone, read about your state auto insurance requirements and examine rates from a variety of companies.
Hopefully, if you have bad credit, you live in a state that has outlawed this practice.
Does Liberty Mutual or USAA have better auto insurance discounts?
Auto insurance company discounts vary widely, and they are usually based on a company’s values and philosophy. That’s why it pays to shop around, especially if you have a bad driving record or low credit score. Discounts can help offset high rates.
|Discounts||Liberty Mutual Discounts Offered (Percent)||USAA Discounts Offered (Percent)|
|Adaptive Cruise Control||5||N/A|
|Daytime Running Lights||5||N/A|
|Electronic Stability Control||5||N/A|
|Forward Collision Warning||5||N/A|
|Students & Alumni||10||N/A|
When comparing all discounts that either company offers, Liberty Mutual has a total of 24 auto insurance discounts while USAA has only 14 discounts.
Even though USAA has cheaper rates, they don’t have as many or as high discounts. USAA’s best auto insurance discounts are 75 percent for young drivers and 90 percent for garaging your vehicle while deployed.
On the other hand, Liberty Mutual offers solid discounts ranging from 20 to 35 percent for having anti-theft technology or a vehicle recovery system in your car, bundling policies like home insurance in addition to auto insurance, and using their driving app or driving device.
The discounts offered by auto insurance companies often target specific types of drivers, so when you get your USAA and Liberty Mutual quotes, be sure to ask if there are any additional discounts.
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What types of auto insurance coverages are offered by Liberty Mutual and USAA?
Since both Liberty Mutual and USAA are two of the 10 companies that make up the most of the market share, they have the means to offer a wider variety of auto insurance coverages that go beyond the standard six coverages which are listed below.
Be sure you understand the various auto insurance coverage types before purchasing each one:
- Liability auto insurance coverage – bodily injury and property damage
- Comprehensive auto insurance coverage
- Collision auto insurance coverage
- Uninsured/Underinsured auto insurance coverage
- Medical Payments (MedPay) auto insurance coverage – particularly important in states that require no-fault auto insurance
- Personal Injury Protection (PIP) auto insurance coverage
Be sure to take a closer look at any specialty coverages such as rental reimbursement, roadside assistance, guaranteed auto protection (GAP), mechanical breakdown, and recreational vehicles such as ATVs or boats.
Does Liberty Mutual or USAA have better auto insurance mobile apps?
Usage-based auto insurance has become an individualized trend in the last decade or so, and all of the bigger auto insurance companies have a driving app that uses your mobile phone or a device installed into your auto.
Large auto insurance companies also provide a more general app to enable you to view your policy, make changes, and pay your bill. Usually, your Liberty Mutual login or USAA login will work with both the general app and the driving app.
Read our Liberty Mutual RightTrack review and compare it to USAA’s SafePilot review to decide if usage-based auto insurance is right for you.
How do Liberty Mutual and USAA auto insurance compare in financial strength and customer satisfaction?
Buying auto insurance is a big financial responsibility, so you want to make sure you are choosing the right company that will be there for you when you need it.
A company’s financial strength, customer satisfaction with the claims process, and customer complaints should be examined before you make your decision.
The following three agencies provide insight into these factors:
A.M. Best scores companies based on their ability to meet their ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.
Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the Liberty Mutual claims process and the USAA claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.
And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers against the total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.
Let’s take a closer look at external ratings for Liberty Mutual and USAA.
|Rating Agency||Liberty Mutual Ratings||USAA Ratings|
|AM Best Rating||A||A++|
|NAIC Company Complaint Ratio||5.95||0.74|
|NAIC Total Complaints||222||296|
Liberty Mutual and USAA are on top of things when it comes to external financial rating agencies. In fact, USAA holds the highest score from AM Best.
USAA has one of the best reviews of customer satisfaction through the claims process, but Liberty Mutual customer service is still fairly good hovering around the same score as most other auto insurance companies.
USAA has a much lower complaint ratio than Liberty Mutual, but be sure to get more details on the NAIC website, call the Liberty Mutual phone number to make an inquiry.
Ready to buy auto insurance? When you’re unsure which company to choose, you can always use our FREE comparison tool to compare auto insurance quotes from the auto insurance companies in your area.