Car insurance is a competitive market, and GEICO and Liberty Mutual are top contenders. GEICO, part of Berkshire Hathaway, Inc., is the third-largest insurer in the auto industry, with a 14% market share, while Liberty Mutual ranks sixth, holding 5%.1
GEICO leads with lower average premiums, saving policyholders around $600 per year compared to Liberty Mutual. But while Liberty Mutual has agents in all 50 states and the District of Columbia, GEICO’s network doesn’t reach South Dakota, Vermont, and Wyoming.
Factors like rates, customer service, discounts, and coverage are crucial considerations before choosing an insurer. Always compare car insurance quotes from multiple insurance companies before buying a policy.
GEICO has cheaper rates, with an average liability rate of $97 per month. Drivers with Liberty Mutual pay an average of $175 per month.
GEICO and Liberty Mutual provide similar discounts for military personnel, good students, and insuring more than one vehicle. GEICO has more discounts overall, but Liberty Mutual has unique discounts for being a homeowner and setting up paperless billing.2 3
When considering insurance coverage, both companies provide the usual options like liability coverage and full coverage, as well as roadside assistance and rental car coverage. GEICO stands out with its mechanical breakdown insurance, which Liberty Mutual doesn’t have. But Liberty Mutual offers gap insurance and new car replacement coverage you won’t find at GEICO.4 5
GEICO is the nation’s third-largest car insurance company. The company shines in customer satisfaction in New England and with its usage-based insurance, according to the J.D. Power 2023 U.S. Auto Insurance Study, yet falls slightly below average in auto claims satisfaction.6
Although Liberty Mutual holds a smaller market share and ranks in the top 10 U.S. insurers, it consistently scores below average in J.D. Power’s 2023 U.S. Auto Insurance and U.S. Auto Claims Satisfaction studies.6
GEICO’s DriveEasy and Liberty Mutual’s RightTrack are telematics programs that reward safe driving behaviors with discounts. DriveEasy automatically monitors driving habits such as speeding, hard braking, phone use, nighttime driving, and weather. However, it’s unavailable in all states and can’t be disabled for work driving, potentially affecting your score.7
Liberty Mutual’s RightTrack reduces your car insurance bill by 10% just for signing up and can potentially cut your rates by 30%. It records driving behaviors like braking and speed through a mobile app (or a plug-in device for New York drivers). RightTrack considers rush-hour driving, while DriveEasy doesn’t.8
Comparing the cost of GEICO and Liberty Mutual reveals that GEICO generally offers lower prices. Basic liability insurance costs about $97 per month, while Liberty Mutual is at $175.
You’ll notice a bigger price difference when looking at full-coverage car insurance: GEICO comes in at $136, and Liberty Mutual is significantly higher, with an average monthly premium of $234.
But remember the cheapest option can vary, even among the largest auto insurance companies. It depends on the type of coverage and deductible you choose, as well as your age, gender, location, and other factors.
Below are liability rates from GEICO and Liberty Mutual for common driver profiles.
GEICO is the more affordable choice for drivers with a clean driving record.
GEICO offers better rates for drivers with a speeding ticket.
GEICO offers much more affordable rates than Liberty Mutual for teen drivers.
Drivers with poor credit find GEICO a more budget-friendly option than Liberty Mutual.
GEICO is the more economical choice for senior drivers.
GEICO and Liberty Mutual provide a wide range of standard insurance coverages, such as bodily injury liability, property damage liability, and full coverage, which combines collision, comprehensive, and liability protection. Other common coverages include personal injury protection, medical payments, and uninsured/underinsured motorist coverage.
Both major companies also offer roadside assistance to help if your vehicle breaks down and rental reimbursement to cover the cost of renting a car while your vehicle is in the shop for repairs after an accident.
However, some types of coverage are exclusive to each insurer. You can get mechanical breakdown insurance with GEICO, covering parts and labor costs like a car warranty, but not Liberty Mutual. But Liberty Mutual has new car replacement coverage, gap coverage, and accident forgiveness, which you won’t find at GEICO.
Auto insurance discounts are an excellent way to lower your car insurance bill, and these two insurers don’t disappoint. GEICO has more variety, but the savings for taking a defensive driving course and having multiple insurance policies aren’t available everywhere, which can be confusing.
Because of this, Liberty Mutual is the better option for offering more straightforward and consistent ways to save on insurance. So, even though GEICO has lower prices, Liberty Mutual might be the better choice for people who want simpler and more consistent savings.
If you’re looking for more clarity about choosing between GEICO and Liberty Mutual, here’s some additional information to help guide your decision.
The decision to choose GEICO or Liberty Mutual depends on your specific needs. GEICO typically offers lower rates and better discounts, but Liberty Mutual provides more straightforward savings and unique coverages, like new-car replacement and gap insurance.
GEICO is the cheaper option when comparing average premiums. It has lower monthly rates across various driver profiles, including people with clean driving records, speeding tickets, or poor credit. Liberty Mutual tends to have higher costs, but its clear-cut discounts might appeal to some customers.
State Farm is GEICO’s top competitor. As the largest car insurance company in the U.S., State Farm holds a larger market share, with 17%, compared to GEICO’s 14%. Both car insurance companies are well-known for their variety of insurance products, competitive prices, and strong reputation.
Yes. Liberty Mutual is known for its reliability in paying claims despite a below-average score in J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study. AM Best gives the company an A (Excellent) financial strength rating, the third-highest of 16 financial strength levels, indicating a solid ability to meet its insurance obligations.9
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