Liberty Mutual vs. State Farm: Pros & Cons (2021)

Today we will be comparing Liberty Mutual vs. State Farm. State Farm offers more competitive pricing than Liberty Mutual. However, of the discounts we have information on, Liberty Mutual offers more. In terms of company ratings, State Farm was more highly rated by the BBB whereas Liberty Mutual was more highly rated by A.M. Best.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Mar 26, 2021

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What You Should Know

  • State Farm offers far more competitive pricing than Liberty Mutual
  • Liberty Mutual offers a wide array of discounts
  • Both companies are well-reviewed by BBB and A.M. Best

If you are with us here today you’re probably looking for your next, or perhaps first, insurer. Choosing the right insurer is a complicated process. To simplify this process, we’re only going to be comparing two companies: Liberty Mutual vs. State Farm.

How do you get auto insurance quotes? Talking to multiple auto insurance agents is one way. You could call the Liberty Mutual phone number to get ahold of one of its representatives, but an easier way is to use a quote tool like ours to get all your options in one place.

Type your ZIP code into our free and helpful tool above to find affordable auto insurance rates in your area. It’s certainly a lot easier than trying to get into contact with Jake from State Farm or calling Liberty Mutual customer service.

What are Liberty Mutual vs. State Farm rates?

When you’re comparing insurers and trying to go about understanding auto insurance, there are numerous factors to consider. First off is something that is probably quite important to you: price.

Let’s take a look at a table that will compare not just Liberty Mutual and State Farm rates, but rates for all of the biggest insurers.

Average Annual Auto Insurance Rates by Company
CompanyAverage Annual Auto Insurance Rates
USAA$2,489
State Farm$2,731
GEICO$3,074
Nationwide$3,187
American Family$3,699
Travelers$3,729
Farmers$3,910
Progressive$3,935
Allstate$4,533
Liberty Mutual$5,296
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As you can see, out of the 10 shown insurers, Liberty Mutual is actually the most expensive.  In fact, it is almost twice as much as the average for State Farm.

Speaking of State Farm, out of the 10 insurers it is only more expensive than USAA. So it’s safe to say that in terms of pricing State Farm wins. Let’s move on to what discounts are offered by these two companies.

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What discounts are offered through Liberty Mutual vs. State Farm?

We cannot stress this enough, ask about discounts. These big insurers offer a ton of discounts that cover everything from safety features to just being part of a certain industry (i.e. medical). Let’s take a look at a table that shows some major discounts

Discounts Provided by Major Auto Insurance Companies
CompaniesEmergency DeploymentFederal EmployeeForward Collision WarningMembership/GroupMilitaryMilitary GaragingOccupationRecent Retirees
21st Century
AAAx
Allstatexx
American Family
Ameriprisex
Amicax
Country Financialxx
Esurancexxx
Farmersxxx
GEICOxxxxx
Liberty Mutualxxxxxx
MetLifexxxxx
Nationwidexxx
Progressivex
Safe Autox
Safecoxxx
State Farmx
The Generalx
The Hanoverxx
The Hartfordxxxx
Travelersxx
USAAxx
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As you can see, of the eight discounts shown, Liberty Mutual insurance offers six. State Farm, however, offers only one. State Farm’s insurance discount is for military garaging. Which discounts does Liberty Mutual offer?

There are discounts for being a federal employee, having a forward collision warning in your vehicle, being a member of a particular group, being in the military, being a recent retiree, and being in specific occupations (inquire when speaking with your agent).

The good news is that a lot of these discounts are as simple as typing in your Liberty Mutual login or State Farm login on their respective apps. Let’s move on to how these two companies are rated.

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What are the financial strength and customer satisfaction ratings from Liberty Mutual vs. State Farm?

One final thing to look out for when comparing insurers is their ratings from companies like A.M. Best and the Better Business Bureau.

Liberty Mutual is currently accredited by the Better Business Bureau and holds a rating of A+. State Farm did not do so well. It is not BBB accredited and has a rating lower than Liberty Mutual: A.

A.M. Best has a rating scale ranging from A++ all the way down to D. State Farm did well with A.M. Best, scoring a rating of A++. Liberty Mutual, however, only scored the third-highest rating of A.

So, all in all, State Farm is cheaper, Liberty Mutual offers more discounts, and both companies are fairly well-reviewed.

Now that you’ve learned more about Liberty Mutual vs. State Farm, you are ready to buy life insurance. Be sure to type your ZIP code into our free and helpful tool below to find affordable auto insurance quotes in your area.

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