Liberty Mutual vs. State Farm Car Insurance (2022)

Our Liberty Mutual vs. State Farm car insurance guide will help you decide between two great companies. Liberty Mutual offers a vast array of insurance options and utilizes a mobile app that rewards customers for safe driving. State Farm car insurance offers great coverage along with investment opportunities. Continue reading to find out more about affordable insurance that works for you.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Written by D. Gilson, PhD
Professor & Published Author D. Gilson, PhD

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Mar 2, 2022

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The Highlights

  • Liberty Mutual offers a vast array of coverage options for individuals and businesses
  • In addition to insurance, State Farm has investment options for clients
  • Both companies could be a great fit depending on your individual needs

Searching for the best insurance companies can be overwhelming. With so many companies to choose from, finding the best option for you can feel like a daunting task.

In this article, you will discover the specific options that Liberty Mutual insurance and State Farm insurance have to offer when it comes to coverage.

As you compare Liberty Mutual vs. State Farm, you will discover more about what you’re looking for and what will work best for you.

If you are searching for insurance options, enter your ZIP code in the free tool above to find out more today!

What does Liberty Mutual offer?

Founded in 1912, Liberty Mutual insurance company started as a company that offered workers’ compensation. More than a century later, Liberty Mutual offers myriad types of insurance, including:

  • Automobile
  • Boat
  • ATV
  • Home
  • Renters
  • Flood
  • Life
  • Accident
  • Identity theft
  • Pet
  • Small business

With such a vast array of coverage options, Liberty Mutual has something for virtually everyone.

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What does State Farm offer?

Similar to Liberty Mutual, State Farm insurance company was founded in the early twentieth century. State Farm started with auto insurance. As the company grew, the options and services it offered also expanded.

Today, State Farm offers all the coverages that Liberty Mutual offers. In addition, State Farm also helps clients with investments such as educational savings, retirement, and annuities.

How do Liberty Mutual and State Farm compare?

Both Liberty Mutual and State Farm have a lot to offer.

Take a look at how both companies compare when it comes to ratings from the top consumer and financial reporting agencies.

Liberty Mutual Financial Strength and Customer Satisfaction Ratings
Ratings AgencyLiberty Mutual Ratings
A.M. BestA
Better Business BureauA-
NAIC Complaint Index6.27
JD PowerClaims Satisfaction 2/5
Shopping Study 3/5
Consumer Reports88
Consumer Affairs2 stars/328 reviews
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With AM Best, Liberty Mutual earned a rating of A, or excellent. This rating is for financial stability. Liberty Mutual scores very well on this front.

The Better Business Bureau (BBB) gives companies a rating based on a combination of factors including customer complaint volume, resolution of complaints, and years in business. Liberty Mutual’s grade is a little lower than the top ranking of A.

Moody’s and Standard and Poor’s (S&P) are both financial ratings and creditworthiness ratings. Liberty Mutual performs well on both.

The National Association of Insurance Commissioners (NAIC) collects complaints data for companies across the country.

Liberty Mutual’s complaint ratio of 5.43 is well above the national median. That means Liberty Mutual has more complaints compared to their market share than the average.

J.D. Power is known for its consumer surveys. Of the two national surveys, they earned a below-average ranking of 2/5 for claims satisfaction and an average rating of 3/5 for insurance shopping.

The Consumer Reports score for Liberty Mutual, which is an 88 out of 100. That’s considered “Very Good.”

And finally, according to Consumer Affairs, Liberty Mutual’s rating is a two out of five, with 89 five-star ratings and 141 one-star ratings.

Overall, Liberty Mutual scores very well on financial ratings but underperforms on most of the consumer satisfaction ratings.

State Farm Financial Strength and Customer Satisfaction Ratings
AM BestA++
Better Business Business Bureau (BBB)A+
NAIC Complaint Index 0.57
JD Power Claims Satisfaction 3/5
Shopping Study 3/5
Consumer Reports‎89
Consumer Affairs4/5
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In contrast to Liberty Mutual, State Farm garners a top rating from AM Best, an A++. This indicates State Farm has the financial resources to stay in business and take care of its policyholders.

The BBB also gives State Farm a top score of A+.

State Farm performs quite well with both Moody’s and Standard and Poor’s, confirming that the company is on solid financial footing.

State Farm’s complaint index recorded by the NAIC is 0.57, which is well below the national average.

When it comes to J.D. Power, State Farm earns three out of five on both customer ratings—which is considered average.

Consumer Reports ranks State Farm at 89 out of 100 on their customer survey scale.

And finally, State Farm has four out of five stars on the consumer complaint site Consumer Affairs—an impressive outcome.

Do both companies have mobile apps?

Liberty Mutual and State Farm both extend the convenience of mobile apps to their customers. The companies differ, however, in what their apps have to offer.

Liberty Mutual customer service is a large part of the company’s mobile app. From the app, policyholders can file a claim, review the status of a claim, and contact customer support without having to call the Liberty Mutual phone number.

An individual’s Liberty Mutual login also allows them to participate in RightTrack, a program designed by Liberty Mutual to reward customers for their safe driving habits.

The State Farm mobile app also allows customers to make and review their claims and contact customer support. In addition, people can use their State Farm login to get roadside assistance and access their ID cards.

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So which company is best?

Liberty Mutual and State Farm differ slightly on what they have to offer. And as you looked at the tables above which reference their financial and consumer reports, you learned they are not identical in all categories.

That being said, the only way for you to know which company is best for you is to compare home insurance and other types of insurance from several companies. Be sure conduct your comparison based on any optional coverage you might need. If you are looking for the cheapest car insurance rates, shop around. Both companies likely have auto insurance discounts you may want to inquire about, the most common is a discount for safe drivers. An insurance agent can provide any answers about auto insurance for you.

The Insurance Information Institute provides resources for informational purposes and has data to support your search when choosing an auto insurance company. Go beyond insurance rate information and look for an insurer who will provide above-average customer service to you.

Now that you’ve learned more about Liberty Mutual and State Farm insurance, use our free tool below to find the right coverage for you!

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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