American Family vs. Liberty Mutual: Best Auto Insurance for 2021

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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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: Mar 3, 2021

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Can't-Miss Facts

  • 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.

American Family vs. Liberty Mutual Average Annual Auto Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusAmerican Family Average Annual RatesLiberty 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
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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.

American Family vs. Liberty Mutual Average Annual Auto Insurance Rates by Driving Record
Driving RecordAmerican Family Average Annual RatesLiberty 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
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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.

American Family vs. Liberty Mutual Average Annual Auto Insurance Rates by Credit Score
Credit History SummaryAmerican Family Average Annual RatesLiberty 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
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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.

American Family vs. Liberty Mutual Auto Insurance Discounts
DiscountsAmerican Family Discounts Offered (Percentage)Liberty Mutual Discounts Offered (Percentage)
Adaptive Cruise ControlN/A5
Adaptive HeadlightsN/A5
Anti-lock BrakesN/A5
Anti-TheftN/A20
Daytime Running LightsN/A5
Defensive Driver1010
Driver's EdN/A10
Driving Device/App4030
Electronic Stability ControlN/A5
Federal EmployeeN/A10
Forward Collision WarningN/A5
Full PaymentN/A$5
Further EducationN/A10
Good StudentN/A22.5
Green VehicleN/A10
Membership/GroupN/A10
MilitaryN/A4
Multiple PoliciesN/A20
Multiple VehiclesN/A10
New AddressN/A5
New GraduateN/A5
Newly LicensedN/A5
NewlywedsN/A5
OccupationN/A10
Passive Restraint30N/A
Recent RetireesN/A4
Students & AlumniN/A10
Switching ProviderN/A10
Vehicle RecoveryN/A35
VIN EtchingN/A5
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Unfortunately, our data source shows only three discounts offered by American Family: defensive driver, airbags, 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++.

Consumer Reports 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.

American Family vs. Liberty Mutual Company Ratings
AgenciesAmerican FamilyLiberty Mutual Ratings
AM BestA (Excellent)A (Excellent)
Consumer Reports8988
NAIC Complaint Ratio0.79 (total of 73 complaints)5.95 (total of 222 complaints)
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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.

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