Liberty Mutual vs USAA Car Insurance

Compare car insurance for Liberty Mutual vs USAA by looking at rates and customer satisfaction. J.D. Powers ranked both companies on customer satisfaction, and USAA ranked 5 while Liberty Mutual ranked 3 out of 5.

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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 26, 2021

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Here's what you should know...

  • Both Liberty Mutual and USAA are leaders in the American auto insurance industry
  • Liberty Mutual offers car insurance as well as homeowners, property and casualty coverage
  • USAA also offers a wide range of insurance including investment and banking
  • USAA ranked highest in a 2009 J.D. Powers & Associates survey of consumer satisfaction

Insurance policies and quotes can be radically different between companies. Liberty Mutual vs USAA auto insurance policies have important differences and similarities that can impact which one you will choose.

Should you purchase car insurance from USAA or Liberty Mutual?

Well, read on to complete this USAA Liberty Mutual car insurance comparison and then enter your zip above for free quotes today!

Liberty Mutual’s Early Start

Liberty Mutual began in 1912 as Massachusetts Employee Insurance Association (MEIA). They took advantage of a new Massachusetts law that required employers have worker compensation insurance starting in 1911.

By 1914, MEIA expanded to selling automobile insurance. MEIA changed its name to Liberty Mutual Insurance Company in 1917 and also added public liability insurance to its products.

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Liberty Mutual’s Financial Strength

US Money Stack Background 2

Today Liberty Mutual is the fifth biggest Property and Casualty insurance company within the US. It employs over 45,000 individuals. A. M. Best gave Liberty Mutual an excellent (A) rating. In 2008, Liberty Mutual financial holdings included:

  • Consolidated assets – $104.3 billion
  • Annual consolidated revenue – $28.9
  • Consolidated liabilities – $94.2 billion

What Product Lines Does Liberty Mutual Offer?

Over 400 offices in the US provide a comprehensive range of personal insurance and financial services such as:

  • Life insurance
  • Personal liability
  • Auto insurance
  • Homeowners insurance
  • High-value personal possessions
  • Annuities

Liberty Mutual provides commercial insurance products to companies that have over 250 employees. Some of these products include:

  • Fire
  • Surety
  • Group life
  • Group disability
  • Worker’s compensation
  • Commercial automobile
  • Commercial peril
  • General liability
  • Global specialty

This company operates in 14 countries and across 5 continents.

How is Liberty Mutual’s Customer Satisfaction?

Review of Arrowhead Insurance

J. D. Powers & Associates surveys customers to collect consumer satisfaction ratings on major insurance companies. In 2009, J. D. Powers & Associates studied homeowners and automobile insurance. It used a ranking system of 1 to 5. The 1 meant “less than the rest” of the companies and the 5 meant “among the best” of the companies. Here are Liberty Mutual’s results.

The ratings first list automobile then homeowners insurance ratings second.

  1. Customer overall experience – 3, 3
  2. Policies offer – 3, 3
  3. Pricing -3, 3
  4. Contact with insurer – 3, 3
  5. Payment and billing – 3, 3

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How Did USAA Start?

The United Services Automobile Association (USAA) was created in 1922. A team of officers in the Army formed USAA to self-insure one another. This happened after private auto insurance companies refused to cover them because of occupational high-risk.

USAA set-up offices in Frankfurt, Germany and London, England in its first few years. Today its headquarters are in San Antonio, Texas. In 1924, it offered auto insurance to servicemen in all branches of the military.

USAA currently provides policies to active and former members of the Armed Forces and their family members. It also includes members of the National Guard, Officer Academy, ROTC, OCS/OTS programs.

USAA Product Lines

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USAA uses its employees to offer potential customers products and financial services instead of using insurance agents. Several of those insurance products include:

  • Property and casualty
  • Automobile
  • Homeowners
  • Renters
  • Annuities
  • Whole and term life
  • Financial planning
  • Investment
  • Banking

How Does USAA Rank With Its Customers?

J. D. Powers & Associate’s 2009 insurance industry study also included USAA. The results for USAA showed the highest rating of 5 in all categories for auto and homeowner insurance.

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Comparing Quotes from USAA and Liberty Mutual

Before you make a buying decision be sure to compare quotes from Liberty Mutual and USAA and many other car insurance companies — enter your zip to start now!

References:

  1. https://www.libertymutual.com/auto
  2. https://www.ambest.com/home/default.aspx
  3. https://www.jdpower.com/
  4. https://www.usaa.com/
  5. https://www.usaa.com/inet/pages/auto_insurance_main?akredirect=true

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