Liberty Mutual vs. State Farm: Pros & Cons (2022)

Today we will be comparing Liberty Mutual vs. State Farm. State Farm offers more competitive pricing, but Liberty Mutual offers more discounts. State Farm has better BBB ratings, 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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Written by Rachel Bodine
Insurance Feature Writer Rachel Bodine

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 Leslie Kasperowicz

UPDATED: Apr 25, 2022

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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

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.

With all the dangers on the road, having car insurance is important. If you are with us here, you’re probably looking for your next, or perhaps first, auto insurer. With so many options in the insurance industry, choosing the right car insurance company can be daunting because of the complicated process. To simplify this, we’re only going to be comparing two companies: Liberty Mutual vs. State Farm.

What are Liberty Mutual’s and State Farm’s rates?

When you’re comparing insurers, looking for low down payment car insurance, 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 also the rates for all of the biggest insurance companies in the US.

Average Annual Auto Insurance Rates by Company
CompanyAverage Annual Auto Insurance Rates
American Family$3,699
Liberty Mutual$5,296
State Farm$2,731
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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 ten 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 State Farm vs. Liberty Mutual?

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
American Family
Country Financialxx
Liberty Mutualxxxxxx
Safe Autox
State Farmx
The Generalx
The Hanoverxx
The Hartfordxxxx
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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 is the insurance coverage offered by Liberty Mutual vs. State Farm?

The next thing you will want to consider when choosing an auto insurance company is their coverage options. Listed below is the insurance coverage provided by these auto insurance providers.

Liberty Mutual Insurance Coverage includes:

  • Multiple vehicle auto insurance policy
  • Bundled Insurance Policy
  • Safe Driver car policy
  • Student auto insurance
  • Vehicle Safety
  • Seniors car insurance

State Farm insurance product coverage options include:

  • Homeowners insurance policy
  • Student car insurance
  • Anti-theft coverage
  • Bundled insurance policy
  • Vehicle Safety insurance

If you want to know more about any additional coverage available, you can check our online quotes tool, research the insurance provider, or contact an insurance agent from that auto insurance company.

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

When comparing each insurer, one final thing to look out for as a future policyholder is their auto insurance customers ratings and insurance claims satisfaction 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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