Let’s compare two popular auto insurance companies to help you find the best car insurer. In this Liberty Mutual Vs State Farm auto insurance review, we will take a look at various important insurance factors. We’ll take a look at how each company handles claims and complaints. We’ll take a look at the different features and discounts that they each offer. We’ll talk a look at their financial strength rating. I believe the choice is easy and in a few minutes you will be making the right choice.
A little information about both insurance providers.
Liberty Mutual was founded in 1912 as the Massachusetts Employees Insurance Association. 5 years later in 1917 the name was changed to the Liberty Mutual Insurance Company. Today the current CEO is David H. Long and the company now has over 50,000 employees.
State Farm was founded on June 7, 1922. Today State Farm is one of the largest insurance companies in the United States. State Farm has over 70,000 employees, over 18,000 agents, 343 claim offices, and 30 operations centers.
Coverage options for both companies
- Car Rental and Travel Expenses
- Uninsured Motor Vehicle
- Underinsured Motor Vehicle
- Medical Payments
- Emergency Road Service
- Rideshare Driver Coverage
- Bodily Injury Liability
- Property Damage
- Medical Payments
- Deductible Fund
- Accident Forgiveness
- Better Car Replacement
- New Car Replacement
- Rental Car Reimbursement
- Lifetime Repair Guarantee
- Teachers’ Auto Insurance
Which is the cheapest insurance company between Liberty Mutual and State Farm?
You never want to be the person who overpays for auto insurance. Both companies offer reasonable monthly car insurance rates. Those who live in the Midwest and Southwest might receive a better rate with State Farm. No insurance quote is going to be the same. I was able to get a cheaper insurance quote with State Farm than I did with Liberty Mutual. However, your quote will most likely differ. Auto insurance rates are dependent on gender, car type, age, where you live, credit history, sex, miles driven, discounts, and more. Compare insurance quotes for yourself and find out which company best fits your budget.
In this section, we will use Better Business Bureau to find out how well each company handles customer complaints. In the case that you ever have a complaint you want a company that is going to hear your concerns and not leave you without any help. The highest grade that you can receive with BBB is an “A+” and the lowest grade that you can receive with BBB is an “F” which means your business received a 0 – 59.99 point score.
State Farm scored higher than Liberty Mutual with an “A+” rating. Liberty Mutual received a good “A” rating, which means out of 100 points they received 94 – 96.99 points.
No one ever wants to get into a car accident. Unfortunately, auto accidents happen every day. For every 60 seconds, there is one car accident. It is always wise to be prepared just in case the inevitable happens and this is why we have auto insurance.
In the J.D. Power U.S. Auto Claims Satisfaction Study Liberty Mutual ranked “among the rest” with 2 out of 5 Power Circles in Overall Satisfaction. State Farm ranked “about average” with 3 out of 5 Power Circles in Overall Satisfaction. Based on a 1000-point scale State Farm received 865 points and Liberty Mutual received 841 points. The J.D. Power Claims Study allows us to know that on average you are more likely to receive faster responses and a better claims experience with State Farm.
Financial strength comparison
Financial strength goes hand in hand with the claims comparison. It’s always a must for me to check out a company’s financial strength to see if they are able to pay insurance claims. The less that a company has at their disposal the stingier that they will be when it’s time to pay up for a claim.
State Farm has well over $240 billion in total assets. In the 2017 Fortune 500 State Farm was ranked 33rd. State Farm received an “A++” rating from A.M. Best which is the highest possible rating that you can receive from A.M. Best. State Farm received an “AA” rating from S&P Global Ratings for their very strong capacity to meet financial commitments.
At the beginning of 2017 it was reported that Liberty Mutual had over $121 billion in consolidated assets, over $102 billion in consolidated liabilities, and over $38 billion in annual consolidated revenue. Liberty Mutual was ranked 75 on the Fortune 500 list of largest corporations in the U.S. Liberty Mutual received an Excellent “A” grade from A.M. Best. From Moody’s Liberty Mutual received a Good “A2” rating. Standard and Poor’s gave Liberty Mutual a Strong “A” rating.
Discounts and features comparison
State Farm discounts/features
Accident-Free – There are many rewards and benefits for being a safe driver. The longer that you have been accident-free with State Farm the more that you will save. To qualify for this discount, you have to have been insured by State Farm for at least 3 continuous years without a chargeable accident.
Defensive Driving Course – I strongly recommend that you check for a list of qualifying courses and requirements in your area. Taking a driver course can easily lower your premium with State Farm.
Student Away at School – If you have a child who moved away for school while leaving his vehicle at home, then you can save on auto insurance. To qualify for this discount the vehicle can only be used on school vacations and holidays.
Good Driving Discount – New customers who have gone 3 years without an at-fault accident or moving violation will save on auto insurance.
Driver Training – If your child 21 years or younger completes an approved driver education course, you may qualify for this discount.
Drive Safe & Save – Your discount will be calculated using information from your smartphone or your vehicle’s OnStar® or SYNC® communication service. State Farm claims that safe drivers can save up to 50% with this discount.
Vehicle Safety – Policyholders can save up to 40% on medical-related coverage.
Multiple Auto – You can save up to 20% on your policy by adding 2 or more vehicles on your policy. All vehicles must be owned by related individuals.
Liberty Mutual discounts/features
New to Liberty Mutual Vehicle – You’ll receive savings on your premium when you add or change a vehicle on your policy.
Accident forgiveness – Although accident forgiveness might cost you slightly more on your premium it’s a great coverage option to have especially for your young drivers. Did you know that premiums can increase over 40% after an accident? With accident forgiveness, your rates will not increase after an auto accident.
Vehicle Safety Features – If your vehicle has certain features such as anti-theft, anti-lock brakes, adaptive cruise control, lane departure warning, and collision preparation systems, then you may qualify for this discount.
Newly Married – If you just got married Liberty Mutual would like to gift you and your spouse with special savings.
Newly Retired – New retirees are able to receive special savings with Liberty Mutual.
Hybrid Vehicle – Liberty Mutual cares about preserving the environment. If you have a hybrid you will easily be able to save with their rare hybrid vehicle discount.
Deductible Fund – When you add deductible fund Liberty Mutual will reduce your collision deductible by $100.
Good Student – It pays to be a good student. “B” average students under the age of 25 may receive special savings.
Mobile app comparison – As smart phones and held-held technology advances so will the need to have better insurance apps.
The Liberty Mutual app is like a smaller version of their website that allows you to do more than their website. With the app, you are able to pay your bills, view your policy and ID cards, update your information, switch to paperless billing, check claim status, and report a new claim.
The Liberty Mutual app also offers cool features such as a GPS for mapping your location, take pictures of damage feature, and a service locator to help you find ATMs, gas stations, and more.
Besides not being able to offer quotes, the Pocket Agent app is rich in insurance features. Features with this app includes CarCapture, Steer Clear, Drive Safe & Save, find roadside services, submit auto claims, pay bills, view your insurance card, and more.
Roadside assistance comparison
Liberty Mutual offers optional 24-hour roadside assistance that covers towing to the nearest qualified facility, jumping a dead battery, delivering emergency fuel(customer pays for fuel), changing a flat tire, and unlocking vehicle doors.
With State Farm, you can use their roadside assistance service whether or not you have roadside assistance coverage. If you don’t have roadside assistance coverage, then you will pay at a rate that is usually less than what is available in the market. You may have to pay out-of-pocket for things such as tires, gas, and batteries. Services in Ontario and Alberta are subject to a $75 limit.
State Farm roadside assistance covers up to one hour of mechanical labor at the breakdown site. Costs will apply for labor beyond one hour. State Farm’s roadside assistance also offers locksmith labor, delivery of gas, oil, a battery, or a replacement tire, and towing.
Which is better?
I believe the choice in this comparison article is easy. I believe Liberty Mutual is a good insurance company. However, I believe that State Farm is slightly better. On average State Farm does better in claims, financial stability, customer complaints, and more. To conclude this review, I recommend that you compare quotes today to see which is the better all-around insurance company.