State Farm is the largest U.S. insurer and has 9.12% of the market. State Farm has been selling policies since 1922. It receives strong marks from third-party rating agency J.D. for financial strength and customer satisfaction. AM Best and Power. State Farm also offers auto insurance for homeowners, renters, and life insurance policies.
Liberty Mutual, a household name in the insurance industry, represents 4.99% of the market. This makes it the fourth-largest insurer in the U.S. It was founded in 1912 and has been providing insurance solutions to individuals and businesses since then. Liberty Mutual employs approximately 45,000 people and offers policies in 29 different countries.
Comparison of car insurance rates between Liberty Mutual and State Farm
Liberty Mutual and State Farm have both received high financial stability ratings from AM Best. This means that they are well-positioned in managing their financial resources. J.D. J.D. These factors are largely what make up the Bankrate Score. They allow you to compare providers in key areas that matter most to policyholders.
Rates based on credit score
In most states, insurers consider your credit score when determining your premium rate. A higher credit score will typically translate into a lower annual premium, according to Quadrant Information Services. Insurers cannot factor in credit scores in four states: Hawaii, California, Washington, and Massachusetts. Liberty Mutual, a leading insurer by market share will likely have rates that are similar to State Farm’s. However, rates are currently not available for comparison.
Rates based on age
Insurers also consider your age when determining your premium. The general rule is that the older you are, the greater your risk, which translates into higher rates. Because younger drivers are statistically less likely to cause an accident or file a claim, this is because they are statistically more likely than older drivers. State Farm rates are several hundred dollars lower than the national average for each age group. As with the national average, Liberty Mutual’s rates are likely to trend lower over time. Based on your age, direct quotes can help determine which provider has the best rates for you.
Driving record rates
Your driving record is another important factor that affects your rate. Insurance companies often reward responsible drivers who are more likely to avoid an accident that could result in a claim. A DUI conviction is the most damaging of all types of incidents. In some cases, it may even make you ineligible to renew your policy. State Farm’s annual premiums for full coverage go up by 50% when a DUI conviction is added, but other national providers experience even greater increases. The average national increase due to a DUI is greater than 87%.
Discounts for Liberty Mutual vs State Farm
Nearly every insurer offers discounts which can help you lower your premium. The Liberty Mutual is the better choice than State Farm with 17 discounts listed compared to State Farm’s 13. Your circumstances will determine which discounts you might be eligible for. Drivers who are eligible for these discounts may be able to save significant amounts.
- State Farm Telematics Discount: Get rewarded for installing an app to your smartphone that provides real-time information about your driving skills. You may be eligible to save as much as 30% if you demonstrate good driving skills in most states.
- Steer Clear — This discount applies to drivers younger than 25 years old, who have not been involved in any motor vehicle accidents or other moving violations. You could save up to 20% if you keep this way for 3 years.
- Bundling — You can save up 17% if you have homeowner, renter, condo, or life insurance with State Farm.
- Military — Liberty Mutual is one provider that offers a military discount for active, retired, or reserve members of the U.S. Armed Forces.
- Accident-free — You will be able to save on your Liberty Mutual policy if you avoid accidents and are accident-free for a number of years. The exact savings amount and availability may vary from one state to the next.
- Liberty Mutual Online Policy Purchase — You can save on average 12% on your auto insurances by purchasing your policy online. This is dependent upon the state.
Comparison of Liberty Mutual vs State Farm: Online and Mobile Experience
Both Liberty Mutual and State Farm have highly-reviewed apps that work on both Android and iOS devices. These apps let you manage your policy and do much of your insurance business from your smartphone. State Farm offers a highly-respected Pocket Estimate2.0 app which allows you to get a repair estimate right from your smartphone.
- App Store (4.8 Stars) — State Farm’s iOS app is quite comprehensive. You can pay your bill, view and add your ID card to Apple Wallet, review your policies, and file a claim. You can also manage the claim, receive roadside assistance, and even rent a car from Enterprise or Hertz.
- Google Play (4.6 star) — State Farm’s Android application lets you view, manage and file claims, as well as get roadside assistance. Logging in allows you to view your State Farm investment products details and create personalized notifications.
- AppStore (4.8 Stars) — Use the Liberty Mutual iOS app to access documents, pay your bills, modify your coverage, and sign documents electronically. The app can be used to make emergency roadside calls and to file and manage insurance claims.
- Google Play (4.6 star) — Liberty Mutual’s Android application has the same features and functions as its iOS counterpart. To quickly contact roadside assistance or search for repair shops, tap the button and you can request a rental car. A guided experience guides you through taking photos after an accident.
Questions frequently asked
Which is the best auto insurance company?
Your needs and your current situation will determine which company is the best for you. Bankrate’s Best Car Insurance Companies For 2021 Review can help you find the right company. Get quotes from several providers to get the best rates and coverage.
What is the average price of car insurance?
For full coverage that includes liability, collision, and comprehensive, the national average is $1.674 per year. The rate you pay will depend on where you live, what vehicle you drive, and your credit rating.
How can I save money when buying auto insurance?
Discounts are a great way to save money. Almost every insurer, including Liberty Mutual and State Farm, offers multiple discounts. Bundling policies and safe drivers with no claims are often eligible for a lower rate from most insurers.