FREQUENTLY ASKED QUESTIONS

While shopping for auto insurance, you might find yourself comparing two of the biggest names in coverage: Liberty Mutual and State Farm.

Both have their advantages and disadvantages, and depending on what you’re looking for, one may be more suitable than the other. Comparing insurance is never easy, but when you know what to consider, you can narrow down the choices and pick an insurer that works best for you. Realize, however, that an insurance company might work for one person, but not another. So, even if friends and family highly recommend one over the other, you need to consider it from a personal standpoint – because, in the end, insurance is unique to the insured.

liberty mutual vs. state farm

A Side-by-Side Comparison of Liberty Mutual and State Farm Using Key Factors

To compare these too efficiently, we are going to look at certain factors that influence higher premiums and the coverage available to you.

Factor #1: Credit Score

Your credit score determines your insurance premium just like your driving record. Therefore, you should see how your score would affect you with a prospective insurance company.

When you have poor credit, Liberty Mutual is most likely the better option. Why? Because Liberty Mutual has lower premiums annually than its competition when a person’s FICO dips below 580.

If, however, you have higher credit, such as 740 or more, then you may prefer State Farm. State Farm does award those with excellent credit with cheaper insurance premiums. Even good credit might do better at State Farm if you are in the 670-739 range. However, you may want to get a quote from both, but also consider the other factors before rushing off to either insurer.

Factor #2: Insurance Rates with Poor Driving History

You want to know how your insurance will react if you were to cause a car accident, get a ticket for speeding, or even arrested for a DUI.

  • If you cause an accident with under $1,000 in property damage. State Farm is more forgiving when property damage stays under $1,000, and the annual premium is still better than Liberty Mutual.
  • If you cause an accident with more than $1,000 in property damage. Here is where the tides turn because now Liberty Mutual saves you slightly more than State Farm for accidents with higher damage amounts.
  • If you are arrested or convicted of a DUI. Both insurers have skyrocketed rates at this point, but State Farm still charges less per year than the competition.
  • If you are charged with reckless driving. Again, State Farm costs you less per year for a reckless driving infraction than Liberty Mutual.
  • If you get a speeding ticket. That one speeding ticket doesn’t cost you too much with either insurer, and State Farm just barely charges under Liberty Mutual – almost too close to consider.

Factor #3: Driver’s Age

Age plays a considerable role in your insurance premium, and some insurance companies heavily rely on age to determine overall risk. Therefore, you should never ignore the age brackets and charges.

Here is how each insurance company compares when you look at various age groups:

  • Teenage Drivers: State Farm
  • Drivers in their 20s: State Farm
  • Drivers in their 30s: State Farm
  • Drivers in their 40s: State Farm
  • Drivers in their 50s: State Farm
  • Drivers in their 60s: State Farm

When age comparisons are applied, State Farm has lower rates for all age groups than the competition.

Factor #4: Discounts and Perk Programs

Now that you have compared the three most important variables for insurance premiums, the next is thinking about any discount opportunities and perk programs offered by each company. We will break down each discount category and who provides that program too.

Liberty Mutual does offer accident forgiveness programs; therefore, if you have one accident, you should not encounter a rate increase. Accidents following that one will increase your rates – and sometimes substantially depending on the damage amount.

Both programs offer roadside assistance add-ons too, and when it comes to customer satisfaction ratings, both are about the same with consumers.

So, Who Wins? Liberty Mutual or State Farm?

In all honesty, it is up to the driver (you) to determine who wins. What is your age, credit score, and driving history? When you compare those factors, you can better pick which company is right for you. For example, if you are a driver age 52 with a perfect driving record and excellent credit, State Farm would work best.

However, if you are in your 20s, your credit score is fair, and you have an accident, Liberty Mutual would save you more.

As you can see, it all comes down to finding where you fall into these comparison categories and then picking the insurance company that is at the top for you.