State Farm vs. Liberty Mutual Car Insurance [2020]

When comparing State Farm vs. Liberty Mutual cost, you can see that both companies offer similar coverage auto insurance options, in addition to homeowners and motorcycle coverage. However, State Farm provides coverage in both the U.S. and Canada, while Liberty Mutual is more international.

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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 27, 2021

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Here's what you need to know...

  • State Farm began as a mutual auto insurance firm that was owned by the policyholders
  • State Farm covers the largest amount of homes and automobiles within the United States
  • Liberty Mutual started in 1912 as the Massachusetts Employees’ Insurance Association (MEIA)
  • Liberty Mutual began after a state law required employers to have workers compensation insurance

Even though State Farm is the number one insurance provider according to sales volume, Liberty Mutual should not be ignored.

State Farm vs Liberty Mutual is a worthwhile comparison between two well-founded companies.

Read on to see how Liberty Mutual and State Farm stacks up.

Then enter your zip code into the free quote tool to get your own car insurance comparison!

Why is State Farm the largest in the US?

State Farm has been the biggest auto insurance company since 1942. State Farm was created in 1922 by George J. Mecherle, a retired farmer and salesman.

State Farm has about 68,000 employees that serve 75 million policyholders within the US and Canada.

It first sold car insurance to farmers. Today, it is headquartered in Bloomington, Illinois and has 17,000 agents across the US and Canada.

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State Farm’s Range Of Products

State Farm has grown from selling automobile insurance to offering insurance for:

  • Homeowners
  • Condominiums
  • Mobile homes
  • Renters
  • Home business
  • Medical
  • Medicare Supplemental
  • Long term care
  • Motorcycle

State Farm also offers retirement planning and banking for personal accounts.

How does State Farm rate with consumers?

In 2009, J.D. Powers and Associates did a customer service study on insurance companies including State Farm.

On a scale of 1 as poor and 5 as among the best, here were the results:

  • Prices 4
  • Payment and billing 4
  • Policies offered 4
  • Insurer contacted 5
  • General overall experience 4

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How big is Liberty Mutual?

Liberty Mutual is the fourth biggest provider of property and casualty insurance within the US according to their number of premiums recorded in 2008.

In 1914, Liberty Mutual wrote its first automobile insurance policy.

Liberty Mutual is currently headquartered in Boston, Massachusetts and has many different offices across the U.S. and the world.

Today, Liberty Mutual employs 45,000 individuals in over 900 offices located around the globe and insures 4.2 million automobiles worldwide.

Liberty Mutual Group has complete or partial ownership of local insurance businesses in:

  • Argentina
  • Brazil
  • Chile
  • China
  • Singapore
  • Spain
  • Thailand
  • Turkey
  • Venezuela
  • Vietnam

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What does Liberty Mutual sell?

Liberty Mutual has a wide variety of national and international insurance products.

Here is a sample:

  • Personal liability
  • Automobile
  • Motorcycle
  • Identity fraud expense
  • Homeowners
  • Condominium

How does Liberty Mutual rank in customer satisfaction?

J.D Powers & Associates included Liberty Mutual in its 2009 customer service study.

Using the identical range of 1 to 5, here is how Liberty Mutual fared:

  • Prices – 3
  • Payment and billing – 3
  • Policies offered – 3
  • Insurer contacted – 3
  • General overall experience – 3

Despite the average ratings, Liberty Mutual has a 91 percent renewal rate among its customers.

Do your own personalized comparison of car insurance quotes to decide if State Farm car insurance or Liberty Mutual car insurance is the best choice for your car insurance needs.

Enter your zip to start comparing quotes now!

References:

  1. https://www.statefarm.com/
  2. https://www.libertymutual.com/
  3. https://www.investopedia.com/articles/active-trading/111314/top-10-insurance-companies-metrics.asp
  4. https://www.jdpower.com/
  5. https://www.libertymutual.com/identity-theft-insurance

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Average Monthly Car Insurance Rates by State