American Family vs. Liberty Mutual: Best Auto Insurance for 2023
In our American Family vs. Liberty Mutual auto insurance guide, we compare the two companies' average rates based on age, driving record, and credit score. American Family has lower car insurance rates for female teen drivers, but Liberty Mutual offers a wider variety of discounts. Read now to compare rates from multiple auto insurance companies close to home.
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Rachael Brennan
Licensed Insurance Agent
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...
Licensed Insurance Agent
UPDATED: Jun 20, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 20, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
On This Page
- Both American Family and Liberty Mutual have great customer satisfaction and a strong financial future.
- Liberty Mutual has an incredibly high customer complaint ratio.
- American Family has lower auto insurance rates for female teen drivers.
- Liberty Mutual offers more discounts than American Family.
- American Family has lower car insurance rates across the board and has better rates for drivers with a low credit score.
This American Family 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 American Family and Liberty Mutual auto insurance discounts, coverage types, and usage-based insurance programs.
Continue reading to compare American Family insurance and Liberty Mutual insurance, or enter your ZIP code to find affordable auto insurance rates in your area.
American Family 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; some states have banned it, however. Let’s compare auto insurance rates for American Family and Liberty Mutual based on age, gender, and marital status.
| Age, Gender, and Marital Status | American Family Average Annual Rates | Liberty Mutual Average Annual Rates |
|---|---|---|
| Single 17-year-old female | $5,997 | $11,621 |
| Single 17-year-old male | $8,131 | $13,719 |
| Single 25-year-old female | $2,289 | $3,960 |
| Single 25-year-old male | $2,695 | $4,503 |
| Married 35-year-old female | $2,203 | $3,803 |
| Married 35-year-old male | $2,224 | $3,857 |
| Married 60-year-old female | $1,993 | $3,445 |
| Married 60-year-old male | $2,014 | $3,681 |
American Family car insurance rates are anywhere from 67 to 94 percent cheaper than Liberty Mutual car insurance rates across the board. Liberty Mutual rates for female teen drivers is nearly double that of American Family.
American Family is definitely a better choice than Liberty Mutual if you have a teen driver in your household.
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American Family vs Liberty Mutual Auto Insurance: which is cheaper based on driving record?
No matter what insurer 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.
| Driving Record | American Family Average Annual Rates | Liberty Mutual Average Annual Rates |
|---|---|---|
| Clean record | $2,694 | $4,774 |
| With one speeding violation | $3,026 | $5,701 |
| With one accident | $3,723 | $6,205 |
| With one DUI | $4,330 | $7,613 |
Again, American Family is the better choice if you have a bad driving record. let’s take a closer look at how each company handles the different types of infractions.
American Family does consider causing an accident more serious than getting a speeding ticket. American Family rates for having one speeding ticket will increase by 12 percent.
If you have an accident on your record, as compared to a driver with a clean record, rates will increase 38 percent.
Liberty Mutual is a little more lenient on drivers who incur an accident on their record. Compared to a driver with a clean record, a driver with a speeding ticket will increase by 19 percent. However, for drivers that cause an accident, their rates increase by 30 percent in comparison to a driver with a clean record.
Both companies take DUIs equally seriously. Liberty Mutual and American Family rates increase by about 60 percent if you get a DUI.
American Family 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 American Family and Liberty Mutual consider your rates based on your credit score.
| Credit History Summary | American Family Average Annual Rates | Liberty Mutual Average Annual Rates |
|---|---|---|
| Good Credit (670-739) | $2,692 | $4,388 |
| Fair Credit Score (580-669) | $3,170 | $5,604 |
| Poor Credit Score (300-579) | $4,468 | $8,802 |
American Family is more lenient than Liberty Mutual on those with fair or poor credit when it comes to determining car insurance rates. Drivers with poor credit will pay twice as much as a driver with good credit with Liberty Mutual.
If you have a credit score on the lower end, American Family is a better option than Liberty Mutual.
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 American Family 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.
| Discounts | American Family Discounts Offered (Percentage) | Liberty Mutual Discounts Offered (Percentage) |
|---|---|---|
| Adaptive Cruise Control | N/A | 5 |
| Adaptive Headlights | N/A | 5 |
| Anti-lock Brakes | N/A | 5 |
| Anti-Theft | N/A | 20 |
| Daytime Running Lights | N/A | 5 |
| Defensive Driver | 10 | 10 |
| Driver's Ed | N/A | 10 |
| Driving Device/App | 40 | 30 |
| Electronic Stability Control | N/A | 5 |
| Federal Employee | N/A | 10 |
| Forward Collision Warning | N/A | 5 |
| Full Payment | N/A | $5 |
| Further Education | N/A | 10 |
| Good Student | N/A | 22.5 |
| Green Vehicle | N/A | 10 |
| Membership/Group | N/A | 10 |
| Military | N/A | 4 |
| Multiple Policies | N/A | 20 |
| Multiple Vehicles | N/A | 10 |
| New Address | N/A | 5 |
| New Graduate | N/A | 5 |
| Newly Licensed | N/A | 5 |
| Newlyweds | N/A | 5 |
| Occupation | N/A | 10 |
| Passive Restraint | 30 | N/A |
| Recent Retirees | N/A | 4 |
| Students & Alumni | N/A | 10 |
| Switching Provider | N/A | 10 |
| Vehicle Recovery | N/A | 35 |
| VIN Etching | N/A | 5 |
Unfortunately, our data source shows only three discounts offered by American Family: defensive driver, air bags, and using their driving device or app.
However, if you have a vehicle recovery system, you can save 35 percent with Liberty Mutual, so it really pays to check out all of the discounts every company offers.
The discounts provided by auto insurance providers also target particular categories of drivers, so be sure to inquire if there are any extra discounts by calling American Family or Liberty Mutual customer service at the American Family or Liberty Mutual phone number.
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What types of auto insurance coverages are offered by American Family and Liberty Mutual?
Since both American Family 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 the different types of auto insurance coverage available to you:
- 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 American Family 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.
If you choose the usage-based auto insurance option with Liberty Mutual or American Family, care should be taken in driving safely because your rates may depend on it.
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. Usually, in both the general app and the driving app, your American Family login or Liberty Mutual login would be the same.
Read more about each of these companies’ usage-based auto insurance programs in our American Family auto insurance review and our Liberty Mutual auto insurance review.
How do American Family 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 awards is Superior A++.
https://www.consumerreports.org/cro/index.htm collects annual data from its subscribers regarding customer satisfaction of the American Family 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 American Family and Liberty Mutual.
| Agencies | American Family | Liberty Mutual Ratings |
|---|---|---|
| AM Best | A (Excellent) | A (Excellent) |
| Consumer Reports | 89 | 88 |
| NAIC Complaint Ratio | 0.79 (total of 73 complaints) | 5.95 (total of 222 complaints) |
Both American Family and Liberty Mutual are highly competitive keeping claims process customer satisfaction high. Additionally, the financial future of both companies is strong.
However, Liberty Mutual has a much higher customer 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.
Enter your ZIP code below to compare auto insurance rates.
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Rachael Brennan
Licensed Insurance Agent
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...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.