What’s Better for Car Insurance – Farmers or Liberty Mutual?
Last Updated on June 5, 2021
With so many different insurance companies out there, it can be difficult to find the one that’s best for your needs. Farmers and Liberty Mutual are two large national insurers that offer nationwide car coverage. While these companies have many similar products, they also have their own unique pros and cons. Here’s what you need to know about Farmers and Liberty Mutual to help you choose the right policy for your car.
About Farmers Insurance
Farmers is one of the largest insurance groups in the US, offering car insurance as well as home, life, and business insurance. They were founded in Los Angeles in 1928, originally catering to farmers and other people who worked in agriculture. Today, Farmers’ insurance products are available to everyone, and they are based in Woodland Hills, a suburb of Los Angeles. They have agents throughout the United States, but also sell their products directly online.
About Liberty Mutual Insurance
Liberty Mutual is a large nationwide insurer that is based in Boston, Massachusetts. They were founded in 1912 to provide worker’s compensation insurance to employees in Massachusetts, and quickly expanded to offer a much wider range of products. Today, Liberty Mutual offers nationwide coverage, and they also own local insurance companies in countries around the world. They are a mutual company, which means that US-based policyholders are also company shareholders.
What Kind of Coverage Does Farmers Offer?
Farmers offers all of the standard car insurance coverage options, including liability, collision, comprehensive, personal injury protection, and uninsured motorist coverage. They also have coverage available for classic cars and other specialty vehicles. They recently expanded to offer car insurance for rideshare drivers who work with companies like Uber and Lyft. They also have launched their Signal program, which uses a mobile app to keep track of your driving habits. If you reduce your mileage and practice safe driving, you can earn discounts over time. They have many add-ons that you can use to customize your policy, including accident forgiveness, rental car reimbursement, OEM parts coverage, and more.
What Kind of Coverage Does Liberty Mutual Offer?
Like Farmers, Liberty Mutual offers all standard types of car insurance coverage, with liability, collision, comprehensive, personal injury protection, and uninsured motorist coverage readily available. They have a wide range of add-ons, including a roadside assistance program, accident forgiveness, gap insurance, and more. They have a unique insurance program for teachers, which provides coverage for vandalism, collisions, and other types of damage while you’re on school grounds – often without a deductible. Another special feature that Liberty Mutual offers is the option to set up a deductible fund, which you can use to save for the cost of your deductible over time instead of having to pay it out of pocket. Liberty Mutual recently launched its Right Track program, which uses a cell phone app to track your driving and awards discounts based on safe driving habits.
Comparing Prices: Farmers vs. Liberty Mutual
Liberty Mutual and Farmers are generally comparable in terms of pricing. However, one may be more affordable for you depending on your driving history and other demographic information. Farmers is more affordable for drivers who are considered high-risk or who have a poor credit score. They are also more affordable for teen drivers. However, if you are a middle-aged driver with good credit and a safe driving record, you may get a cheaper price with Liberty Mutual. Both companies also offer a range of discounts, including discounts for having a good driving history, good grades, insuring multiple vehicles, having anti-theft features on your car, and more. When signing up for car insurance, be sure to ask about all possible discounts so you don’t miss an opportunity to save money.
View the table below to compare the discount offerings of Farmers and Liberty Mutual:
| Discount | Farmers | Liberty Mutual |
|---|---|---|
| Accident Free | ✓ | |
| Anti-Lock Brakes | ✓ | ✓ |
| Anti-Theft Device | ✓ | ✓ |
| Multiple Policies | ✓ | ✓ |
| Student Away at School | ✓ | |
| Defensive Driving Class | ✓ | |
| Good Driver | ✓ | ✓ |
| Good Student | ✓ | ✓ |
| Farm or Ranch Vehicle | ✓ | |
| Long Term Policy Holder | ✓ | |
| Married | ✓ | |
| Multiple Vehicle | ✓ | ✓ |
| New Car | ✓ | |
| Pay In Full | ✓ | |
| Safety Features | ✓ | ✓ |
| Senior Driver | ✓ | |
| Telematics | ✓ | ✓ |
| Affinity Group | ✓ | |
| College Graduate | ✓ | |
| Green Vehicle | ✓ | ✓ |
Comparing Customer Service: Farmers vs. Liberty Mutual?
Farmers and Liberty Mutual are very comparable when it comes to their customer service. Both receive average reviews for their customer service, and they both offer cell phone apps and online quoting options to help you purchase and manage your policy effectively. Farmers has a slightly lower ratio of complaints to customers than Liberty Mutual does.
The two companies also have A, or excellent, ratings from AM Best. AM Best is an agency that assesses the financial strength and trustworthiness of insurance companies. An A rating means that the company can be counted on to pay out claims regardless of the current economic climate.
View the table below to compare the financial and customer service ratings of Farmers and Liberty Mutual:
| Institution | Farmers | Liberty Mutual |
|---|---|---|
| A.M. Best | A | A |
| Standard & Poor's | A | A |
| Fitch | A+ | A- |
| Moody's | A2 | A2 |
| BBB User Satisfaction | A+ | A+ |
| JD Power Rankings | 3/5 | 3/5 |
Who Should Use Farmers for Car Insurance?
Farmers is a good choice for those who have poor credit, as they are able to offer more affordable rates. They also offer more affordable rates for teen drivers or drivers who have accidents on their records. Farmers may also be preferable for those who prefer to have a local insurance agent to work with, as they do have a team of exclusive agents with offices throughout the country, in addition to their employees.
Who Should Use Liberty Mutual for Car Insurance?
Liberty Mutual is a good choice for many different types of drivers. They are a particularly good option if you want a highly customized policy because they have a wide range of add-ons and discounts available. They are also a great choice for teachers because they have education-specific programs to help teachers save money. Liberty Mutual is also a great choice for those who prefer to handle their insurance policies online because their app and website are both very easy to use.
Both Farmers and Liberty Mutual offer reliable service and a wide range of car insurance products. To find the right car insurance policy for your needs, start by getting quotes from both companies to see who can offer you better value for money. You should always make sure to ask about discounts as well, as this can significantly lower the price of your insurance.
