What Is Better for Auto Insurance – Liberty Mutual or State Farm?

Last Updated on December 19, 2025

If you’re deciding between Liberty Mutual and State Farm, you’re comparing two household names—but the “better” choice usually comes down to how you drive, where you live, and what kind of service you want (local agent vs. more online-first).

Below is a practical, updated comparison—without pretending there’s one universal winner. Use it to figure out which company is more likely to fit your profile, then get quotes from both to confirm.

Key Takeaways

• Liberty Mutual and State Farm can both be excellent insurers, but the cheaper option depends on your state, mileage, discount eligibility, and driving profile.
• Telematics can be a tie-breaker: Liberty Mutual RightTrack and State Farm Drive Safe & Save can offer major savings for smooth, low-risk drivers (availability varies by state).
• Credit-based insurance scoring can affect rates where permitted, but several states restrict or ban its use—always compare quotes using your state’s rules.
• Don’t compare price alone—review add-ons like accident forgiveness and roadside assistance, plus claims/service satisfaction in your region.

Liberty Mutual vs. State Farm: Quick Comparison

What Actually Determines Whether Liberty Mutual or State Farm Is Cheaper?

Your premium isn’t a “company price”—it’s a customized price based on your risk signals and the rules in your state. When you compare quotes, make sure you’re comparing the same coverage limits, deductibles, drivers, vehicles, and mileage.

Factor #1: Credit-Based Insurance Score (Where Allowed)

In many states, insurers can use credit-based insurance scoring as part of rating. That means your price can change even with a clean record. If you want a full breakdown of how this works, see: does credit score affect car insurance rates?

However, some states restrict or ban using credit in auto insurance pricing. For an up-to-date overview, check the NAIC’s explainer: credit-based insurance scores (NAIC).

Factor #2: Your Driving Record and Recent Incidents

If you have tickets, accidents, or other incidents, the “best” insurer can flip quickly. Every company uses its own rating model and weighs violations differently. For context on how an at-fault crash can impact pricing, read: what happens with insurance after an at-fault accident?

Tip: if you’re comparing prices after an incident, run quotes with the same incident details and dates. Even small differences in how you answer questions can swing the result.

Factor #3: Mileage and How You Use Your Car

Mileage is one of the most underrated price factors. If you drive less (remote work, fewer errands, short commute), you may qualify for savings. Learn how it works here: low mileage discounts.

Telematics Showdown: RightTrack vs. Drive Safe & Save

If you’re a safe driver, telematics can be the fastest way to separate two “close” quotes.

• Liberty Mutual RightTrack: Typically includes an initial discount for enrolling, then measures your driving for about 90 days. Liberty Mutual advertises total potential savings up to 30%—but also notes some drivers could see a rate increase depending on results. Details: RightTrack program page.
• State Farm Drive Safe & Save: Offers a discount for enrolling and can save safe drivers up to 30% in many states. Availability varies, and some states have special rules or caps. Details: State Farm auto discounts (see “Drive Safe & Save”).

If you’re uncomfortable with phone-based tracking, skip telematics and compare traditional discounts instead (bundling, good student, multi-car, etc.). If you’re comfortable with it, telematics can be a major advantage—especially for smooth drivers who avoid hard braking, risky hours, and phone distraction.

Coverage Options and Add-Ons: What Matters Most

Both Liberty Mutual and State Farm offer the standard building blocks (liability, collision, comprehensive, uninsured/underinsured motorist, medical-related coverages where available). The bigger differences usually come from endorsements and how you like to handle claims and service.

One commonly compared perk is accident forgiveness. Not every driver qualifies, and it works differently by insurer and state—but it can help protect your rate after a first at-fault accident. Here’s the concept explained: what is accident forgiveness?

Another add-on many drivers care about is roadside assistance. If you’re deciding between adding it to your auto policy vs. using another service, start here: emergency roadside assistance coverage.

Customer Satisfaction and Financial Strength

Service quality can depend heavily on your state and local market. For broad customer satisfaction benchmarks, J.D. Power publishes regional results each year (so a company can look “great” in one region and “average” in another). If you want to see the latest regional leaders, start with: J.D. Power 2025 U.S. Auto Insurance Study.

Financial strength matters because it reflects an insurer’s ability to pay claims over the long haul. Ratings can change, so it’s smart to check current ratings when you’re shopping. Liberty Mutual publishes its rating agency summaries here: Liberty Mutual financial ratings. For State Farm, AM Best rating actions are also widely reported; for example, AM Best downgraded State Farm Mutual Automobile Insurance Company’s financial strength rating to A+ from A++ in November 2025 (still “Superior” in AM Best’s system): Carrier Management coverage of the AM Best downgrade.

FAQs on Liberty Mutual vs. State Farm Auto Insurance

So, Which Is Better: Liberty Mutual or State Farm?

Choose based on your profile:

• Pick State Farm if you prefer a local agent, want strong “traditional” discounts, and like having in-person help tweaking limits and deductibles.
• Pick Liberty Mutual if you like managing things online, you’re interested in a structured telematics program like RightTrack, or you want to compare optional perks and endorsements.
• Quote both if you’re anywhere in the middle (most people are). The same driver can see meaningful price differences depending on state, credit rules, mileage, and discount eligibility.

Final tip: run quotes with identical coverage selections, then compare not only the premium, but also deductibles, included endorsements, and how each company handles claims and service in your area.