Farmers and Liberty Mutual are two of the biggest car insurance companies in the United States by market share.1 Both insurers have an impressive coverage selection, but Farmers has higher customer satisfaction from policyholders. Liberty Mutual has lower average rates, making it the more affordable option for some drivers.
Before getting a policy from Farmers or Liberty Mutual, it’s important to compare quotes from these companies as well as customer satisfaction, discounts, coverages, and financial strength. Shopping around for coverage will help you find the best insurance option for an affordable price.
Here’s what you need to know about coverage from Farmers and Liberty Mutual.
Overall, Farmers is a better car insurance company than Farmers thanks to higher customer satisfaction and a variety of coverage options. While Liberty Mutual has lower average premiums, Farmers has more discounts for customers to benefit from.
If you’re looking to customize your car insurance policy, both car insurance companies provide a wide range of options, like accident forgiveness, rental reimbursement, and new-car replacement coverage.
Compare the two auto insurers below.
Farmers Insurance is the seventh-largest U.S. car insurance company, with 4.55% of the total market share. The company has an AM Best financial strength rating of A (Excellent), which indicates an ability to pay out claims. Policyholders can benefit from more than two dozen discounts, depending on where in the country they live.
Liberty Mutual Insurance is the sixth-largest U.S. car insurance company, capturing a 4.95% total market share. The company offers more than a dozen available discounts and low average rates. Liberty Mutual earned an AM Best financial strength rating of A (Excellent) and ranked highly in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study.
Farmers and Liberty Mutual both offer a telematics-based safe driver rewards program. A mobile app tracks your driving behaviors during trips, such as acceleration, brake force, phone use, and nighttime driving. If you demonstrate safe driving behaviors, you can qualify for a discounted premium.
With Liberty Mutual RightTrack, you can automatically save 10% by enrolling and up to an additional 30% for driving safely. You must use the app for at least 90 days before you qualify for the safe driving discount.
The Signal program from Farmers doesn’t have a discount for signing up, and it doesn’t advertise the maximum savings for safe driving on its website. However, for every month you drive safely and earn a score of 80% or better, Farmers enters you into a drawing for rewards worth up to $100.
Liberty Mutual has cheaper rates than Farmers, based on Insurify data. Liberty Mutual policyholders pay an average of $175 per month for liability insurance and $234 for full-coverage insurance.
To compare, the average cost of coverage from Farmers is $110 per month for liability insurance and $215 for full coverage.
However, the cost of car insurance ultimately varies depending on the driver. Besides the insurance company, some factors affecting your premium include location, age, driving record, credit score, and vehicle type.2
For drivers with a clean record free of tickets, accidents, and other violations, Liberty Mutual has lower car insurance premiums on average. People without prior driving incidents generally pay the lowest car insurance rates.
Liberty Mutual has cheaper average car insurance rates for drivers with a past speeding ticket compared to Farmers. Auto insurers view past speeding tickets as an indicator of higher risk.
For teenagers and other young drivers, Liberty Mutual has cheaper average car insurance rates. Teenagers typically pay the highest rates by age group due to their lack of driving experience.
Liberty Mutual has lower rates for customers with bad credit. Drivers with good or excellent credit history typically pay lower rates than people with poor credit.
Senior drivers can find cheaper average car insurance rates with Liberty Mutual. After benefiting from low rates during middle age, senior drivers may face a slight increase in rates due to aging-related risk factors.
Farmers and Liberty Mutual both offer excellent insurance coverage overall. These companies sell all the standard car insurance policies, with common coverages like bodily injury liability, property damage liability, personal injury protection, medical payments, uninsured/underinsured motorist, collision, and comprehensive insurance.
Both companies offer a robust selection of endorsements, though specifics vary by company. For example, Liberty Mutual has gap insurance, and Farmers offers a rideshare endorsement.
See how the two companies compare in terms of add-ons below.
Farmers offers a much bigger selection of discounts, but many of the discounts vary by state. If you’re interested in getting a policy from Farmers, it’s a good idea to speak with an agent about the discounts you might qualify for based on your location and driving profile. Liberty Mutual also has more than a dozen discounts available for policyholders.
Compare available car insurance discounts that Farmers and Liberty Mutual offer below.
Deciding on the right insurer for your coverage needs can feel overwhelming. If you’re comparing coverage options from Liberty Mutual and Farmers car insurance, this information might help guide you in your decision.
No. Farmers Insurance and Liberty Mutual aren’t the same company. They’re two independent insurance companies that sell a variety of insurance products, including auto insurance and home insurance. Both Farmers and Liberty Mutual underwrite their own car insurance policies.
Farmers is one of the largest car insurance companies on the market, and it has a good reputation overall. However, it has high average rates and poor customer satisfaction ratings.
Farmers has more complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC). It also earned a below-average ranking for overall customer satisfaction in most regions in J.D. Power’s 2023 U.S. Auto Insurance Study.
Several highly rated car insurance companies offer cheaper rates than Liberty Mutual. Allstate, GEICO, Auto-Owners, Progressive, USAA, and State Farm are some of the insurers with lower average rates than Liberty Mutual, according to Insurify data.
However, your car insurance premium will also depend on personal factors like your location, ZIP code, age, driving record, and credit score.
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