Is State Farm bigger than Liberty Mutual?
Yes. State Farm is bigger than Liberty Mutual in terms of market share and total volume of premiums written. State Farm is one of the largest insurance companies in the U.S. in several insurance products.2
Choosing a car insurance company can be overwhelming. State Farm and Liberty Mutual are two options. Both are leaders in the insurance industry with large market shares.
You may know State Farm for its extensive network of independent agents, but this hands-on approach sometimes comes with higher premiums. Liberty Mutual focuses on technology-driven services but may offer less extensive coverage options than its competitors.
In this article, we’ll highlight the differences between State Farm and Liberty Mutual and discuss why it’s important to compare rates, customer service, discounts, and coverages when deciding which insurer to buy a policy from.
Liberty Mutual vs. State Farm: The verdict
State Farm is the winner due to its higher customer satisfaction ratings and lower rates. Liberty Mutual is more widely available but only by a small margin. However, State Farm doesn’t offer new-car insurance policies in Massachusetts or Rhode Island, while Liberty Mutual is available in all 50 U.S. states and the District of Columbia.1
Here’s how the two companies stack up:
Liberty Mutual
Liberty Mutual is the sixth-largest private passenger auto insurer in the U.S., with a market share of 4.93%, according to the National Association of Insurance Commissioners (NAIC) 2022 Market Share Report.2
State Farm
State Farm is the top private passenger auto insurer in the U.S., with a market share of 16.78%, according to the NAIC’s 2022 Market Share Report.2
Liberty Mutual RightTrack vs. State Farm Drive Safe & Save
Both Liberty Mutual and State Farm offer telematics programs, which track your driving and can result in discounts for safe driving.
Liberty Mutual’s RightTrack program tracks things like acceleration, braking, and when you drive, via a mobile app or a device installed on your vehicle. You earn a 10% discount just for enrolling and can save up to 30% on your car insurance by demonstrating safe driving habits.3
Drive Safe & Save by State Farm also tracks your trips via a mobile app. You get a discount for enrolling and can save up to 30% based on how you drive.4
Liberty Mutual vs. State Farm: Which is the cheapest?
State Farm offers the cheapest average rates for both liability-only and full-coverage auto insurance policies. We’ll detail the premium differences below, but keep in mind that your insurance quote will vary based on your driving record, age, credit score, and other rating factors.
State Farm: Cheapest for drivers with a clean driving record
State Farm has the cheapest average rates for people with a clean driving record.
A liability-only policy costs an average of $56 per month compared to $175 per month through Liberty Mutual. For full coverage, State Farm’s average monthly premium is $110 compared to $234 from Liberty Mutual.
State Farm: Cheapest for drivers with a speeding ticket
State Farm wins this category as well, with average monthly rates significantly cheaper than Liberty Mutual’s for a driver with one speeding ticket on their record.
State Farm: Cheapest for teen drivers
State Farm offers the cheapest rates for teen drivers, potentially due to its variety of discounts available to young drivers and their families, including discounts for good students, taking a driver training course, and being ticket- and accident-free for three years.
State Farm: Cheapest for drivers with bad credit
State Farm comes out ahead in this pricing category as well, offering the cheapest average monthly premiums for drivers with poor credit.
State Farm: Cheapest for senior drivers
State Farm offers the cheapest average monthly premiums for senior drivers. Its rates for drivers in their 60s and 70s are lower than those offered by Liberty Mutual.
Compare discounts: Liberty Mutual vs. State Farm
Liberty Mutual’s average rates might be higher in every category, but your premiums could be lower if you qualify for one or more of Liberty Mutual’s discounts. Both State Farm and Liberty Mutual offer several discount programs to help customers save money, such as those for maintaining a clean driving record or bundling car insurance with your home insurance.
Here’s how the two insurance companies compare when it comes to discounts offered.
Liberty Mutual vs. State Farm FAQs
An apples-to-apples comparison of two different insurance policies can be tough. Below, we address some of the most frequently asked questions for policyholders comparing these two insurance giants.
Which insurer is State Farm’s biggest competitor?
State Farm’s biggest competitor is Progressive. State Farm has a 16.78% market share, compared to 14% for Progressive. Additionally, State Farm totaled $46.7 billion in direct premiums written in 2022, compared to $38.9 billion for Progressive.2
Is Liberty Mutual good at paying claims?
Liberty Mutual has an AM Best financial strength rating of A (Excellent), which indicates financial strength and a solid ability to meet its claims obligations.8 However, online customer reviews show many customer complaints about claims service.
According to the J.D. Power 2023 U.S. Auto Claims Satisfaction Study, Liberty Mutual earned 866 out of 1,000 possible points — lower than the industry average of 878 points. State Farm, on the other hand, earned 891 out of 1,000 points.9
What makes State Farm different from competitors?
State Farm sets itself apart through its extensive network of local agents and a focus on personalized customer service. It’s one of the best auto insurance companies for customers who want to have a direct relationship with their agent rather than relying on digital or call-center-based customer service models.
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