Picking auto insurance is not easy, mainly because there are so many providers out there each with a unique perk. You have conflicting information from advertisements, friends, and family telling you what worked for them, and now you need to choose one.
The most important thing to remember when comparing insurance is that no one is precisely the same. You have to consider the key factors (i.e., credit score, driving history, age, and more) to determine which insurance company works for you. While your family may have great experiences with one insurer, that doesn’t mean they will be the right fit for your budget and driving needs.
A Look at Liberty Mutual versus Allstate – Which is the Best Insurance for You?
There are three primary components you should use to compare first: credit, driving history, and age. Then, you need to consider perk programs and discounts last. Do not get reeled in by discounts. While one company could boast they will save you hundreds on insurance premiums, the reality could be that you end up paying more because the other company offered a cheaper premium based on these three factors.
Factor 1: What is Your Credit Score?
Credit score and insurance premiums go together like bread and butter.
The weaker your score, the higher the risk in the eyes of insurance companies. Therefore, you should consider your FICO score heavily before picking and insurance company.
Allstate does offer better pricing for those with fair to poor credit scores, meaning anyone below 669 FICO score. Even those with a good rating, which is between 670 and 739, save a little more with Allstate than Liberty Mutual annually.
Once credit scores hit the Very Good to Exceptional range, which is anything above 740, Liberty Mutual starts to save the driver more than Allstate.
So, if you have a credit score over 740, Liberty Mutual will come out ahead, while if you’re below 739, you may consider Allstate.
Before you buy any policies, you need to still consider the next factor.
Factor 2: Are You a High-Risk Driver?
The more infractions on your driving record, the harder it is to get insurance, and some insurers are not as forgiving as others. So, here is a quick breakdown of each common infraction type and who will charge you less annually if it is on your report.
- When you cause an accident and the damage totals over $1,000 – Liberty Mutual will not charge you as much each year compared to Allstate.
- When you cause an accident, and the damage is under $1,000 – Both companies are within $100 or less of one another; therefore, they get a tie here.
- If you are charged with a DUI – Both companies almost double annual premiums, but in the end, Allstate is cheaper and more forgiving about a DUI on the record than Liberty Mutual.
- If you are charged with reckless driving – Your premiums will increase by similar amounts with both Allstate and Liberty Mutual.
- If you have a speeding ticket on your record – Both companies do charge more, but Allstate ends up costing higher than Liberty Mutual for speeding.
Factor 3: How Old are You?
Age determines risk in the eyes of insurance companies, much like a credit score. The older you are, the more experienced and less risky you are to an insurance company – until you hit the new risk bracket for being over 60.
In general, teen drivers will get better rates with Allstate over Liberty mutual, but that doesn’t mean Allstate is always cheaper by age.
Instead, it breaks down by the following:
- Teen Drivers: Allstate – just barely
- Drivers in their 20s: Tie
- Drivers in their 30s: Allstate
- Drivers in their 40s: Tie
- Drivers in their 50s: Liberty Mutual
- Drivers in their 60s: Tie
As you can see, it bounces up and down between the two companies. While a middle-aged driver gets better rates with Allstate, those over 50 get a better price with Liberty Mutual, but both companies charge about the same for those over 60.
Factor 4: What Perks and Other Discounts Can You Unlock?
Now you are ready to compare the discounts along with the other factors. These should only be part of your assessment after you consider your credit score, age, and driving record.
- Good Student Discounts: Both
- Multiple Policy Discounts: Both
- Multi-Car Discounts: Liberty Mutual
- Anti-Theft Discounts: Both
- Car Safety Feature Discounts (airbags, ABS, etc.): Both
- Good Driver Discounts: Allstate
- Defense Driver Course Discounts: Allstate
- Driver Training Course Discounts: Both
- Eco-Friendly Vehicle Discounts: Both
- New Vehicle Discounts: Both
Bottom Line? Compare the Factors and Get a Quote
While you have numerous perks to each, the best way to see which works for you is to call both insurance companies and get a quote. Also, remember that insurance is highly unique. So, when you know the three primary factors that influence your premiums, you are better equipped to pick the insurance company that works best for you and your budget.