When you’re shopping around for auto insurance, you should consider coverage from AAA and Liberty Mutual. AAA is a membership-based company that offers cheaper coverage than Liberty Mutual on average. Liberty Mutual has more coverage options and consistent offerings nationwide.
Before signing up for auto insurance, it’s a good idea to shop around and get quotes from multiple companies, including AAA and Liberty Mutual. By comparing rates, customer service, discounts, and coverage options, you can find the best car insurance company offering the cheapest coverage for you.
Here’s what you need to know about AAA and Liberty Mutual before you buy a new auto insurance policy.
AAA and Liberty Mutual are popular insurance companies that provide quality coverage options. Overall, more customers may find AAA to be the better choice due to its affordable cost and higher customer satisfaction. But you may prefer working with a major insurer like Liberty Mutual due to the consistency in coverage offerings and reliability.
Ultimately, the best insurer for you will depend on your driving record, age, coverage needs, ZIP code, and more. When shopping around for coverage, always keep an open mind to find the best and cheapest insurer for you.
Here’s how AAA and Liberty Mutual compare.
Founded more than 115 years ago, AAA offers roadside assistance services and auto insurance under an umbrella of different companies. Auto Club Enterprises Insurance Group holds 1.45% of the private-passenger auto market share, CSAA holds 1.11%, and Automobile Club Michigan Group holds 0.7%.1
Liberty Mutual Insurance is the sixth-largest auto insurer in the country, with about 5% of the market share. Despite its popularity and a wide array of coverage and discount options, it has generally low satisfaction rankings among its customers and a high number of complaints.
Both AAA and Liberty Mutual offer telematics programs that allow you to save on your premiums based on their driving habits.
AAA’s SMARTtrek program tracks driving habits — including smoothness, phone use, speed, and duration — using a mobile app. AAA members who participate will see all their driving results, along with feedback on how to drive more safely. You can save up to 10% on your premiums for signing up.
Similarly, Liberty Mutual’s RightTrack program tracks your trips for 90 days using a mobile app to receive a score and qualify for a discount. It tracks braking, acceleration, nighttime driving, rush-hour driving, low-speed driving, and distracted driving. You can save 10% on premiums for enrolling in the program and up to 30% based on your driving habits.
AAA and Liberty Mutual both offer insurance premiums that are lower than the overall national average. It’s important to know that each insurance company uses its own formula to set insurance rates, taking into account information like your age, gender, driving history, location, credit score, and more.2
You may find that the insurer that offers the cheapest rates for you is different from the cheapest on average. Shop around with several companies to find the best rates for your unique situation, either by working with an insurance agent or broker or by shopping online.
Good drivers with clean driving records free of violations generally pay the lowest rates. AAA offers slightly lower rates than Liberty Mutual for drivers with clean records.
If you have a speeding ticket on your driving record, you may find cheaper rates through AAA than Liberty Mutual. Having a speeding ticket on your record will likely cause an increase in your premium either way.
Young drivers, especially teenagers, pay the highest insurance premiums of any demographic due to a lack of driving experience and higher risk. Teen drivers can earn cheaper rates with AAA, on average.
Your credit score can have a significant effect on your insurance premiums. A bad credit score often results in higher premiums. Drivers with poor credit pay less on average with AAA.
Insurance premiums tend to decrease throughout your life but may increase again once you reach your 70s. AAA charges significantly lower rates for older drivers than Liberty Mutual.
With a wide range of coverage offerings, AAA and Liberty Mutual stand out in the insurance industry. Both insurers offer standard types of car insurance coverage, including liability insurance, comprehensive insurance, and collision insurance. Both offer optional coverage add-ons like new-car replacement, gap insurance, and accident forgiveness.
Liberty Mutual offers teacher auto insurance, but AAA doesn’t. However, you’ll have almost every option available to you with either company.
Discounts can help you save money on your auto insurance premiums, and both insurers have plenty of discounts you can qualify for with some variation. For example, Liberty Mutual offers a discount for military members, but AAA doesn’t.
Both companies provide the most standard discounts, including savings for earning good grades, setting up auto pay, and bundling your policy with other insurance products like home insurance, renters insurance, or life insurance. It’s important to note that AAA discount availability can vary by location and AAA car insurance company.
See how AAA and Liberty Mutual car insurance compare in popular discount offerings.
The following information should answer your remaining questions and help you decide which insurer works best for your insurance coverage needs. Before comparing quotes from AAA, Liberty Mutual, and other insurers, you should determine how much coverage you need.
Though it’s more expensive on average than AAA, Liberty Mutual’s premiums are still below the national average. Liberty Mutual customers may earn affordable rates due to the company’s wide variety of discount options. Ultimately, how much you pay for coverage will depend on your driver profile and location.
AAA can be a great option for auto insurance. It has car insurance rates below the overall national average and solid discount offerings. But whether it’s a good insurer for you depends on your personal situation. It’s important to get a quote from AAA and several other auto insurance companies to determine how rates compare.
Liberty Mutual is one of the largest auto insurers in the U.S. It offers affordable policies with more coverage options than many competitors while maintaining excellent financial strength.
But each person has a unique situation and insurance needs. You should always determine the right types of insurance and coverage levels for you when shopping around for quotes.
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