American Family vs. Liberty Mutual Car Insurance [2021]

Our American Family vs. Liberty Mutual car insurance guide will help you choose between two financially stable companies. We offer comparisons of rates based on your individual qualities such as age, driving record, and credit score. Liberty Mutual has higher rates than American Family overall, but Liberty Mutual has some very specific discounts that offset their higher rates. Which company is best for you? Continue reading to make your decision.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 15, 2021

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Here's What You Need to Know

  • American Family and Liberty Mutual have excellent customer satisfaction and a growing financial future.
  • Liberty Mutual has a higher customer complaint ratio than American Family.
  • American Family has lower car insurance rates for female teen drivers.
  • American Family has better rates for drivers with a low credit score.
  • Liberty Mutual offers more discounts than American Family, but American Family has lower car insurance rates overall.

Are you trying to choose between American Family and Liberty Mutual for car insurance? Both companies are good choices based on financial strength, but a specific discount may be what leads you to choose one over the other.

In our American Family vs. Liberty Mutual car insurance guide, we compare rates by demographics particular to you: age, gender, marital status, driving record, and credit score. We also compare available discounts for each company. The best car insurance companies are also rated by third-party agencies to help you decide.

Keep reading to compare American Family auto insurance and Liberty Mutual auto insurance, or enter your ZIP code to start comparing car insurance quotes in your local area.

Is American Family car insurance or Liberty Mutual car insurance cheaper based on age?

As we gain more years of experience as drivers, the more aware and safe we become. This is why car insurance companies use age as one of the biggest factors that determine your car insurance rates.

In most states, it’s legal to base car insurance rates on gender and marital status, though some states have outlawed it. Compare American Family insurance rates and Liberty Mutual insurance rates based on age, gender, and marital status.

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Car insurance rates with American Family car are anywhere from 67 to 94 percent cheaper than Liberty Mutual overall. Interestingly, female teen drivers rates with Liberty Mutual pay almost double of what Liberty Mutual charges.

American Family is a good choice over Liberty Mutual if you have a teen driver in your family.

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Is American Family car insurance or Liberty Mutual car insurance cheaper based on driving record?

Speeding tickets, accidents, or DUIs on your driving record will increase your car insurance rates no matter what company you choose because you become a higher risk.

Certain companies will offer discounts, however, for completing a defensive driving course. This option is largely determined by your state laws.

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American Family has lower rates if you are considered a high-risk driver. Each company addresses each of the three infractions differently.

American Family considers you a higher risk if you caused an accident than if you have only a speeding ticket. Compared to a driver with a clean record, American Family rates for having one speeding ticket will increase by 12 percent.

However, compared to rates for a low-risk driver, American Family increases rates by 38 percent for drivers who have had an accident.

Liberty Mutual is more forgiving when its drivers cause an accident. Drivers that cause an accident will see their rates increase by 30 percent in comparison to a driver with a clean record.

But, compared to a driver with a clean record, a driver with a speeding ticket rate will increase by 19 percent with Liberty Mutual.

DUIs, however, are considered major infractions by both companies. Expect your rates with both Liberty Mutual and American Family to increase by as much as 60 percent if you get a DUI.

Is American Family car insurance or Liberty Mutual car insurance cheaper based on credit score?

Your credit score may drop considerably if, unfortunately, you experience a financial trauma such as medical challenges or going through a divorce. Many states permit car insurance companies to use your credit score to determine your car insurance rates.

The car insurance companies justify using your credit score based on the assumption that those with higher credit scores are more responsible and overall safer drivers less likely to file a claim.

Does this sound unfair to you? You aren’t alone. Several states have outlawed rates based on credit score along with gender and marital status. Let’s take a look at how American Family and Liberty Mutual handle drivers with low credit scores.

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American Family is a little more understanding than Liberty Mutual when it comes to credit score. Drivers with poor credit will pay twice as much with Liberty Mutual as a driver with good credit.

If you have a bad credit history, American Family is a better choice than Liberty Mutual.

Before you judge these two companies’ rates based on credit score alone, read about car insurance laws in your state and examine rates from a variety of companies by reading your state car insurance guide.

Hopefully, if you have bad credit, you live in a state that has outlawed this practice.

Does American Family or Liberty Mutual have better car insurance discounts? 

Taking advantage of available discounts with any car insurance company will offset high rates if you have a bad driving record or a poor credit score. There are interesting and specific discounts out there, and it all depends on a company’s philosophy and values.

Unfortunately, our source includes only three American Family car insurance discounts: defensive driver, airbags, and using their driving device or app.

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But, with Liberty Mutual, you can save 35 percent if you have a vehicle recovery system. Strange, right? Checking for discounts really makes a difference.

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Does American Family or Liberty Mutual have better car insurance mobile apps?

Usage-based car insurance has become an individualized trend in the last decade or so, and all of the bigger car insurance companies have a driving app that uses your mobile phone or a device installed into your car.

Large car insurance companies also provide a more general app to enable you to view your policy, make changes, and pay your bill.

Read about American Family’s KnowYourDrive and Liberty Mutual’s RightTrack usage-based car insurance apps in our American Family company review and our Liberty Mutual company review.

How do American Family and Liberty Mutual car insurance compare in financial strength and customer satisfaction?

A car insurance company should not be judged based on rates or discounts alone; a company’s financial strength, customer satisfaction with the claims process, and customer complaints are just as important to consumers as saving the most money.

The following three agencies provide insight into these factors:

A.M. Best scores companies based on their ability to meet ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.

And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers against the total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.

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Both companies have a rock-solid financial future. Additionally, both American Family and Liberty Mutual are highly rated when it comes to customer satisfaction with the claims process.

However, Liberty Mutual has a larger customer complaint ratio. Before ruling out Liberty Mutual, be sure to find more details on the NAIC website.

Ready to buy car insurance? Use our FREE comparison tool to compare different car insurance companies in your area to ensure you’re getting the most affordable car insurance for you.

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