Allstate vs. Liberty Mutual: Best Auto Insurance for 2021

In our Allstate vs. Liberty Mutual auto insurance guide, we compare the two companies' average rates based on age, driving record, and credit score. If you have a teen driver or you are seeking huge discounts, Allstate is your best bet. However, if you have bad credit, Liberty Mutual will provide you with more affordable auto insurance rates. Read now to compare rates from multiple auto insurance companies close to home. 

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Jul 19, 2021

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Can't-Miss Facts

  • Both Allstate and Liberty Mutual have strong customer satisfaction and a bright financial future.
  • Liberty Mutual has an incredibly high customer complaint ratio and cheaper car insurance rates for teen drivers.
  • Both Allstate and Liberty Mutual offer competitive discounts — it just depends on your situation.
  • Allstate has lower car insurance rates for having bad credit.
  • Both Allstate and Liberty Mutual increase rates a great deal for having a bad driving record.

This Allstate vs. Liberty Mutual auto insurance guide will provide a wide variety of auto insurance coverage options when analyzing rates according to your unique qualities like your age, gender, marital status, driving record, and credit score.

We also include external ratings from the most trustworthy agencies and compare Allstate and Liberty Mutual auto insurance discounts, coverage types, and usage-based insurance programs.

Continue reading to compare Allstate insurance and Liberty Mutual insurance, or enter your ZIP code to find affordable auto insurance rates from local companies in your area.

Allstate vs. Liberty Mutual Auto Insurance: which is cheaper based on age?

The older we get, the more practice we have while driving. In calculating auto insurance rates, providers use age as one of the most significant variables.

In most states, it is legal to base auto insurance premiums on marital status and gender; other states have banned it, however. Let’s compare auto insurance rates for Allstate and Liberty Mutual based on age, gender, and marital status.

Allstate vs. Liberty Mutual Average Annual Auto Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusAllstate Average Annual RatesLiberty Mutual Average Annual Rates
Single 17-year-old female$9,282$11,621
Single 17-year-old male$10,643$13,719
Single 25-year-old female$3,425$3,960
Single 25-year-old male$3,571$4,503
Married 35-year-old female$3,156$3,803
Married 35-year-old male$3,123$3,857
Married 60-year-old female$2,913$3,445
Married 60-year-old male$2,991$3,681
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For those 25 and older, Liberty Mutual car insurance rates are an average of 21 percent higher than Allstate car insurance rates.

Liberty Mutual is a better choice than Allstate if you have a teen driver.

You can save up to 27 percent by insuring your teen driver through Allstate compared to Liberty Mutual.

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Allstate vs. Liberty Mutual Auto Insurance: which is cheaper based on driving record?

No matter what auto insurance company you use, speeding tickets, auto accidents, or DUIs on your driving record will increase your auto insurance premiums and you become a higher risk driver.

Allstate vs. Liberty Mutual Average Annual Auto Insurance Rates by Driving Record
Driving RecordAllstate Average Annual RatesLiberty Mutual Average Annual Rates
Clean record$3,820$4,774
With one speeding violation$4,484$5,701
With one accident$4,988$6,205
With one DUI$6,261$7,613
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Both Liberty Mutual and Allstate take infractions seriously. Allstate car insurance rates increase by 17 to 63 percent as you rack up speeding tickets, cause accidents, or drive under the influence.

Liberty Mutual car insurance rates for those with a driving record are just a bit lower but not enough to really make a huge difference when choosing between the two companies. Liberty Mutual rates increase by only 19 to 59 percent.

So, it doesn’t matter which company you choose: Allstate or Liberty Mutual. Your rates with a bad driving record will be just as high with either company; however, Liberty Mutual is a few percentage points lower, and that can make a difference.

Allstate vs. Liberty Mutual Auto Insurance: which is cheaper based on credit score?

If you undergo some sort of financial trauma, such as incurring medical debt or going through a divorce, a good credit score will drop in a matter of months. It is legal for auto insurance providers to base premiums on your credit score in most states; however, some outlaw it along with gender and marital status dependent rates.

Auto insurance providers justify using your credit score to decide your rates because of the premise that people with higher credit scores are more responsible and that, overall, are less likely to file a claim.

Let’s take a look at how Allstate and Liberty Mutual consider your rates based on your credit score.

Allstate vs. Liberty Mutual Average Annual Auto Insurance Rates by Credit Score
Credit History SummaryAllstate Average Annual RatesLiberty Mutual Average Annual Rates
Good Credit (670-739)$3,860$4,388
Fair Credit Score (580-669)$4,581$5,604
Poor Credit Score (300-579)$6,491$8,802
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With that said, Allstate is more lenient than Liberty Mutual on those with fair or poor credit. Drivers with fair or poor credit will pay higher rates with Allstate (19 to 68 percent more), but, if you choose Liberty Mutual and you have a poor credit score, expect your rates to be at least double that of drivers with good credit.

If you have a credit score on the lower end, Allstate is the better choice.

Before you judge the rates of these two companies based on credit score alone, learn about the specifications of your state’s minimum car insurance requirements and compare rates from a number of companies. Hopefully, if you have bad credit, you live in a state that has outlawed basing rates on credit scores.

Does Allstate or Liberty Mutual have better auto insurance discounts?

Discounts from car insurance providers vary widely, and they are typically focused on the principles and ideology of a company. That’s why, particularly if you have a poor driving record or a low credit score, it pays to shop around. Discounts can help counter high costs.

Allstate vs. Liberty Mutual Company Auto Insurance Discounts
DiscountsAllstate Discounts Offered (Percentage)Liberty Mutual Discounts Offered (Percentage)
Adaptive Cruise ControlN/A5
Adaptive HeadlightsN/A5
Anti-lock Brakes105
Anti-Theft1020
Claim Free35N/A
Daytime Running Lights25
Defensive Driver1010
Distant Student35N/A
Driver's Ed1010
Driving Device/App2030
Early Signing10N/A
Electronic Stability Control25
Farm Vehicle10N/A
Federal EmployeeN/A10
Forward Collision WarningN/A5
Full Payment10$5
Further EducationN/A10
Good Student2022.5
Green Vehicle1010
Membership/GroupN/A10
MilitaryN/A4
Multiple Policies1020
Multiple VehiclesN/A10
New AddressN/A5
New GraduateN/A5
Newer Vehicle30N/A
Newly LicensedN/A5
NewlywedsN/A5
OccupationN/A10
On Time Payments5N/A
Paperless Documents10N/A
Paperless/Auto Billing5N/A
Passive Restraint30N/A
Recent RetireesN/A4
Safe Driver45N/A
Senior Driver10N/A
Students & AlumniN/A10
Switching ProviderN/A10
Utility Vehicle15N/A
Vehicle Recovery1035
VIN EtchingN/A5
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Allstate has 24 car insurance discounts, and Liberty Mutual has 28 discounts.

The highest discount you can get with Liberty Mutual is 35 percent, and that is for having a vehicle recovery system. Allstate offers three discounts between 30 and 35 percent, and those are for having airbags, being claim-free, and being a distant student.

The discounts provided by auto insurance providers also target particular categories of drivers, so be sure to inquire if there are any extra discounts when you get your Liberty Mutual and Allstate quotes.

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What types of auto insurance coverages are offered by Allstate and Liberty Mutual?

Since both Allstate and Liberty Mutual are two of the 10 companies that make up the majority of the auto insurance market share, they have the means to provide a broader range of coverages for auto insurance that go beyond the six standard coverages mentioned below. Before buying each one, make sure you understand your options in auto insurance coverage.

  • 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 Allstate or Liberty Mutual have better auto insurance mobile apps?

In the last decade or so, usage-based auto insurance has become an individualized standard, and all of the larger auto insurance providers have a driving app you can install into your car or uses telematic mechanisms in your smartphone.

A more general app is also offered by major auto insurance providers to allow you to access your policy, make adjustments, and pay your bill. In both the general app and the driving app, your Allstate login or Liberty Mutual insurance login would be the same.

If you do not wish to use the app, you can always call the Allstate or Liberty Mutual phone number to speak with an agent.

Read more about each of these companies’ usage-based auto insurance programs in our Allstate auto insurance review and our Liberty Mutual auto insurance review.

How do Allstate and Liberty Mutual auto insurance compare in financial strength and customer satisfaction?

It is a major financial commitment to buy car insurance, so you want to be sure you are choosing the right company that will have your back when you need it.

Before you make your decision, the financial strength of a company, consumer satisfaction with the claims process, and customer concerns should all be considered.

Insight into these factors is provided by the following three agencies:

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 is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the Allstate claims process and the Liberty Mutual 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 ratings from credible third-party agencies for Allstate and Liberty Mutual.

Allstate vs. Liberty Mutual Company Ratings
AgenciesAllstate RatingsLiberty Mutual Ratings
AM BestA+ (Excellent)A (Excellent)
Consumer Reports8888
NAIC Complaint Ratio0.5 (total of 163 complaints)5.95 (total of 222 complaints)
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Both Allstate and Liberty Mutual are highly competitive in keeping customer satisfaction through the claims process high. The financial future of both companies is strong.

However, Liberty Mutual customer service has a higher complaint ratio. Before choosing Liberty Mutual, be sure to get more details on the NAIC website.

Ready to buy auto insurance? When you’re not sure 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.

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