Liberty Mutual vs. State Farm: Best Auto Insurance for 2021

When it comes to Liberty Mutual vs. State Farm, State Farm auto insurance rates are cheaper than Liberty Mutual across the board. Although State Farm insurance has better financial and customer satisfaction ratings, Liberty Mutual has an A+ rating from the BBB, and State Farm isn’t rated. Ask about discounts when you compare Liberty Mutual vs. State Farm auto insurance to lower rates.

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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: May 1, 2021

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Can't-Miss Facts

  • State Farm auto insurance rates are much cheaper than Liberty Mutual
  • State Farm has slightly higher financial and customer satisfaction ratings than Liberty Mutual
  • Liberty Mutual received an A+ rating from the BBB, but State Farm isn’t rated

When it comes to automobile insurance, you have a lot of options, and comparing them head to head can help narrow down your choices. We will look at Liberty Mutual vs. State Farm auto insurance companies to see which one meets your needs the best.

Compare rates, discounts, financial ratings, and customer satisfaction to determine if either is right for you.

However, you don’t have to just compare Liberty Mutual vs. State Farm to find the best company. Enter your ZIP code to receive free quotes from multiple companies near you.

Is Liberty Mutual auto insurance or State Farm auto insurance cheaper?

You might be surprised to learn exactly what factors determine auto insurance rates. Car insurance companies look at everything from your age, gender, marital status, driving record, and credit history to determine your rates.

These factors can make the difference in determining how affordable Liberty Mutual vs. State Farm auto insurance is for you.

Let’s take a look at Liberty Mutual vs. State Farm auto insurance rates using some of those factors to see who can offer you the best deal. This table shows you the average annual auto insurance rates for both companies based on your demographics.

Liberty Mutual vs. State Farm Average Annual Rates Based on Age, Gender, and Marital Status
Age, Gender, and Marital StatusLiberty Mutual Average Annual RatesState Farm Average Annual Rates
Single 17-year-old female$9,875.56$4,875.91
Single 17-year-old male$12,181.54$6,130.77
Single 25-year-old female$3,287.35$1,979.45
Single 25-year old male$3,502.13$2,176.45
Married 35-year-old female$3,085.88$1,734.93
Married 35-year-old male$3,179.88$1,734.93
Married 60-year-old female$2,706.04$1,558.06
Married 60-year-old male$3,088.10$1,558.06
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State Farm is much cheaper than Liberty Mutual no matter your age. However, 17-year-old male drivers will save the most with State Farm.

Another important factor that auto insurance companies use to calculate your rates is your driving record. If you have accidents, tickets, or DUIs, you will spend a lot more on your insurance than if you have a clean driving record.

Liberty Mutual vs. State Farm Average Annual Rates Based on Driving Record
Driving RecordLiberty Mutual Average Annual RatesState Farm Average Annual Rates
Clean record$4,774.30$2,821.18
With 1 accident$6,204.78$3,396.01
With 1 DUI$7,613.48$3,636.80
With 1 speeding violation$5,701.26$3,186.01
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Liberty Mutual is more expensive than State Farm regardless of your driving record. Drivers with DUIs will pay the most with Liberty Mutual.

You might be surprised to learn your credit score affects your auto insurance rates. Insurance companies believe that if you have a higher credit score, you are less likely to file a claim and more willing to pay out of pocket for damages.

Liberty Mutual vs. State Farm Average Annual Rates Based on Credit History
Credit HistoryLiberty Mutual Average Annual RatesState Farm Average Annual Rates
Good$4,388.18$2,174.26
Fair$5,604.24$2,853.00
Poor$8,802.22$4,951.20
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Once again, State Farm is considerably cheaper than Liberty Mutual whether you have good, fair, or poor credit. Keep in mind that there are a few states, like California and Michigan, that don’t allow auto insurance companies to look at your credit score to determine your rates.

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Does Liberty Mutual or State Farm have better auto insurance discounts?

Car insurance discounts are a great way to lower your rates. Most companies offer you numerous common discounts, such as multi-vehicle and good student discounts.

Most companies also allow you to bundle policies to save even more. For example, if you choose between Liberty Mutual vs. State Farm home insurance, you can add a discount to your auto insurance for having multiple policy types.

This table shows you the auto insurance discounts offered by Liberty Mutual and State Farm. If the amount of the discount is known, it is included. See which company can offer you the most discounts.

Liberty Mutual vs. State Farm Auto Insurance Discounts
Auto Insurance DiscountsLiberty Mutual (%)State Farm (%)
Adaptive Cruise Control5N/A
Adaptive Headlights5N/A
Anti-lock Brakes55
Anti-Theft2015
Claim Freex15
Daytime Running Lights5N/A
Defensive Driver105
Distant StudentN/Ax
Driver's Ed1015
Driving Device/App3050
Electronic Stability Control5N/A
Federal Employee10N/A
Forward Collision Warning5N/A
Full Payment$5N/A
Further Education10N/A
Good CreditN/Ax
Good Student22.525
Green Vehicle10N/A
Homeownerx3
Lane Departure WarningxN/A
Low Mileagex30
Marriedxx
Membership/Group10N/A
Military4x
Multiple Policies2017
Multiple Vehicles1020
New Address5N/A
New Customer/New PlanxN/A
New Graduate5N/A
Newer VehicleN/A40
Newly Licensed5N/A
Newlyweds5N/A
Occupation10N/A
Paperless/Auto Billingx$2
Passive Restraintx40
Recent Retirees4N/A
Safe DriverN/A15
Students & Alumni10N/A
Switching Provider10N/A
Vehicle Recovery355
VIN Etching5N/A
Young DriverxN/A
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Although both companies offer many of the same discounts, there are some differences. For example, Liberty Mutual offers a federal employee discount, and State Farm doesn’t. However, State Farm offers a safe driver discount, and Liberty Mutual does not.

Ask about any discounts you are eligible for when you compare Liberty Mutual vs. State Farm auto insurance quotes.

How do Liberty Mutual and State Farm compare in financial strength and customer satisfaction?

A.M. Best ranks companies based on how financially stable they are. Liberty Mutual received an A rating, showing it has an excellent ability to meet financial obligations. State Farm received an A+, showing a superior ability to meet its obligations.

When it comes to the Better Business Bureau (BBB), Liberty Mutual is accredited and has an A+ rating. State Farm is not accredited or rated.

Both companies were also ranked by J.D. Power for customer satisfaction on factors like what is offered, billing, price, and claims. Liberty Mutual ranked at or below average in most regions, while State Farm ranked average in most regions.

Both Liberty Mutual and State Farm have other similarities also. Each has an easy-to-use website and mobile app, as well as offering additional services such as roadside assistance. You can also use the websites to compare additional products like Liberty Mutual vs. State Farm renters insurance.

To learn more about each company, read our Liberty Mutual review and our State Farm insurance review.

Deciding to buy Liberty Mutual vs. State Farm auto insurance can be a difficult decision. Weigh pros and cons to determine if either company is right for you.

Now that you’ve compared Liberty Mutual vs. State Farm auto insurance, enter your ZIP code to compare quotes from multiple companies near you.

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