What’s Better for Car Insurance – USAA or Liberty Mutual?
Last Updated on June 19, 2023
Liberty Mutual and USAA are both renowned car insurance companies that offer coverage throughout the US. Since there are so many options when it comes to car insurance, it can be difficult to find the right fit for your needs. In this article, we’ll compare USAA and Liberty Mutual’s car insurance offerings, so you can find the policy that’s best for you.
What Is USAA?
USAA is an insurance company that focuses on insurance products for military members. They were initially founded by a group of army officers, but have since expanded to offer products to all members of the military and their families. They are based in San Antonio, Texas, and offer insurance products throughout the US. USAA has a list of strict eligibility requirements, and by limiting their membership, they are able to offer very affordable products.
What Is Liberty Mutual?
Liberty Mutual is one of the largest insurance companies in the US. They are unique in that they have a mutual company structure, which means that insurance policyholders are also shareholders. Having a stake in such a large company can have financial benefits for long-term customers. Liberty Mutual has also expanded to offer insurance products around the world by working with local insurers in Asia, South America, and Europe. They were founded in 1912 and are headquartered in Boston, Massachusetts. In addition to their car insurance policies, Liberty Mutual offers a wide variety of other coverage types and is one of the largest providers of property insurance in the world.
What Types of Coverage Do USAA and Liberty Mutual Offer?
Both USAA and Liberty Mutual offer a range of standard car insurance coverage types, as well as add-on coverage that you can use to customize your policy further. Some of the standard coverage types that both companies offer include liability, collision, comprehensive, personal injury protection, and uninsured motorist coverage. Both Liberty Mutual and USAA also offer roadside assistance as an add-on, which can cover towing, emergency lockout service, and other unexpected expenses you may encounter on the road. They also offer endorsements for other types of vehicles, including motorcycles, RVs, and boats.
USAA offers coverage for rideshare drivers to protect against the additional liabilities that come from having passengers in your vehicle. They are also known for their accident forgiveness program, which prevents your rates from going up after an accident. Liberty Mutual makes it very easy to bundle your car insurance with other types of policies, which can help you save money on home and business insurance as well as car insurance.
View the table below to compare the coverage offerings of both companies:
| Coverage | USAA | Liberty Mutual |
|---|---|---|
| Bodily Injury Liability Coverage | ✓ | ✓ |
| Property Damage Liability Coverage | ✓ | ✓ |
| Collision Coverage | ✓ | ✓ |
| Comprehensive Coverage | ✓ | ✓ |
| Personal Injury Protection | ✓ | ✓ |
| Medical Payments Coverage | ✓ | ✓ |
| Roadside Assistance | ✓ | ✓ |
| Accident Forgiveness | ✓ | ✓ |
| Rental Car Reimbursement | ✓ | ✓ |
| Rideshare Insurance | ✓ | ✓ |
| Gap Insurance | ✓ | |
| Teachers Car Insurance | ✓ | |
| New Car Replacement | ✓ | |
| Mexico Tourist Car Insurance | ✓ | |
| Lifetime Repair Guarantee | ✓ | |
| Original Parts Replacement (OEM) | ✓ | |
| Extended Coverage | ✓ | |
| Vanishing Deductible | ✓ | |
| Better Car Replacement | ✓ | |
| Umbrella Insurance | ✓ | ✓ |
Which Is More Affordable – USAA or Liberty Mutual?
USAA’s premiums are significantly lower than Liberty Mutual’s, regardless of your driving history, credit score, or other factors. This is because their policies are only available to people in the military and their families. By limiting the number of people who can apply for their policies, USAA is able to keep its prices low. They also offer a wide range of discounts for their customers, including discounts for good grades, a good driving record, and taking defensive driving courses, among other things.
While Liberty Mutual’s policies are more expensive, they offer a number of programs and discounts to help you save money. They are also open to everyone, regardless of military status. Liberty Mutual has a telematics program called Right Track, which monitors your driving habits and gives you discounts for driving safely. You can earn discounts for reducing your mileage as well as keeping your speeds down and braking safely. This is a great option for those who only drive occasionally, as you can save money by reducing your time on the road. They also have a deductible fund program, which gives you the option to put money away for your deductible ahead of time, instead of having to pay it all at once when filing a claim.
View the table below to compare the discount offerings of both companies:
| Discount | USAA | Liberty Mutual |
|---|---|---|
| Bundle Policies | ✓ | ✓ |
| Multi-Vehicle | ✓ | ✓ |
| Good Student | ✓ | ✓ |
| Anti-Lock Brakes | ✓ | ✓ |
| Anti-Theft Device | ✓ | ✓ |
| Good Driver | ✓ | |
| Telematics | ✓ | ✓ |
| Defensive Driving Course | ✓ | |
| Driver Training | ✓ | ✓ |
| Environmentally Friendly Car | ✓ | |
| Pay in Full | ✓ | |
| Long Term Policy Holder | ✓ | |
| Military | ✓ | |
| Married | ✓ | |
| New Car | ✓ | ✓ |
| Affinity Membership Alum | ✓ | ✓ |
Customer Service: USAA vs. Liberty Mutual
Both USAA and Liberty Mutual get generally good reviews for their customer service. However, USAA really stands out, with outstanding reviews for efficient claims processing times and a responsive customer service team. Both companies have mobile apps that you can use to make payments and manage your policy from your phone. You can also get a quote online easily through Liberty Mutual’s website. If you get a quote online and eventually sign up for a policy, you can earn a discount.
Both insurers also receive good marks for their financial strength, meaning they can reliably pay out claims regardless of current economic conditions. Liberty Mutual receives an A rating from AM Best, while USAA receives a slightly higher rating of A++. AM Best is a firm that rates the financial strength and reliability of financial organizations like insurance companies.
Who Should Choose USAA?
USAA is the best choice for military members and their families, because of the cheap rates they are able to offer. USAA is able to offer very competitive rates and discounts for members of the military without sacrificing the quality of insurance coverage, which makes it the top choice for military members. Even if you personally have not served in the military, you may be able to qualify for a membership through a spouse or another member of your family.
Who Should Choose Liberty Mutual?
Since USAA’s membership requirements are restrictive, Liberty Mutual is a better choice for those who are not members of the military or don’t have the right family connections for USAA. Liberty Mutual offers a wide range of policy types and discounts, so you can customize your insurance plan to suit your needs. They are a good option for those who don’t drive often and can benefit from mileage-based coverage.
USAA and Liberty Mutual are both very reliable insurance companies. USAA is best for those who are in the military, while Liberty Mutual offers comprehensive car insurance coverage for civilians. Since car insurance costs can vary widely from person to person, it’s worthwhile to get quotes from both companies to see which one can offer you a cheaper rate.
