Choosing an insurance provider that cares for both your personal and business needs can be a tough call. Price comparison sites are helpful but don’t always provide the in-depth insights you need to make the right decision.
There are hundreds of insurance companies and brokers out there in the same number. So, how do you know which is best for you?
That’s why today, we’re diving into two of the best-known insurance providers in the US: Liberty Mutual and State Farm. We’ll be making direct comparisons between the two, so hopefully, by the end of this review, you’ll have a better idea of which, if either, provider’s best for you.
There’s lots to cover, so let’s make a start:
Main Differences Between Liberty Mutual vs State Farm
The main differences between Liberty Mutual vs State Farm are:
- Liberty Mutual offers cheaper rates for customers, whereas State Farm’s rates are more expensive.
- Liberty Mutual sells policies online, whereas State Farm sells policies exclusively through local agents.
- Liberty Mutual offers travel trailer insurance and RV insurance, whereas State Farm doesn’t offer such option.
- Liberty Mutual offers discounts for military personnel if you pay in full or you’re a homeowner, whereas State Farm doesn’t offer such discounts.
- Both providers offer policies in all 50 states.
- Both provide a complete range of insurance products, including auto, life, and home insurance.
- Both companies offer breakdown assistance.
- Liberty Mutual and State Farm both come with mobile apps to manage your insurance.
Liberty Mutual vs. State Farm: Who’s Liberty Mutual?
Liberty Mutual first opened its doors in 1912 to help workers acquire compensation insurance. Shortly after, in 1918, they launched their first auto policy.
Fast forward to today, and the Boston-based company now has a presence in more than 30 countries. Liberty Mutual has expanded beyond recognition since its beginnings over a century ago. Now, the company offers multiple types of insurance policies to personal and business customers alike.
Liberty Mutual has earned numerous awards, including making Forbes Magazine’s 2020 list of best companies in the US for new graduates, women, and veterans. It’s also recognized as one of the best employers for diversity.
The Liberty Mutual homepage allows potential customers to input their zip code before going through a series of actions to acquire an insurance quote. Alternatively, you can call them for a quote instead. It’s also possible to pay insurance bills online and do business with a local Liberty Mutual insurance agent.
Liberty Mutual vs. State Farm: Who’s State Farm?
State Farm differs from Liberty Mutual in that it’s not a straightforward insurance company. It also offers banking and investment services.
However, similar to Liberty Mutual, its website enables you to get insurance quotes, with potential discounts for different policies.
Launched in 1922, State Farm now has 19,000 agents across the US and 58,000 employees. Founded by Illinois farmer G.J. Mercherle, State Farm describes itself as “a trusted neighbor since 1922.”
Like Liberty Mutual, the company has earned lots of recognition for being a good employer, environmental record, and community work.
These include the MF13 award for being a top military veteran employer, a 2020 award for being a leading company for women technologists, and the 2020 National Association of Female Executive award for being one of the top companies for executive women.
Liberty Mutual vs. State Farm: Liberty Mutual’s Insurance Offer
Liberty Mutual divides its insurance packages into two main categories:
Within these two categories are tons of sub-categories depending upon the type of insurance you’re looking for. Here, we’re going to take a broad look at all of these while focussing on personal insurance.
At this point, it’s worth noting that Liberty Mutual’s aim is clear: to help meet your insurance needs in one convenient place.
Liberty Mutual’s personal insurance is divided into three sub-categories:
Auto and Vehicle:
Here, you’ll find the following policies:
- Car insurance
- Motorcycle insurance
- Boat and watercraft insurance
- Antique and classic car insurance
- ATV and off-road vehicle insurance
- Recreational vehicle insurance (RV)
There’s also an Umbrella policy covering the additional liability of up to $1 million, coverage for those in your household, and worldwide protection.
This category offers the following property-related policies:
- Mobile home
…That’s as well as an Umbrella policy covering additional liability with the same features outlined above.
Under this category, customers can find the following insurance policies:
- Accident insurance
- Critical illness
- Identity theft
- Pet insurance
- Tuition insurance
- Small business insurance
With all the above policies, you can put them into what Liberty Mutual calls a “bundle.” If, for example, you “bundle” policies together, Liberty Mutual offers you a discount. It uses these examples on its website:
- Auto + Home
- Auto + Renters
- Auto + Condo
What’s not clear (we looked!) is whether you can bundle other policies together or not. The company also advertises that if you buy one or more of its policies online, you get a 12% off or more. Although it’s possible to get quotes online, this is only the case for some but not all of Liberty Mutual’s policies.
For example, you can get an online quote for car insurance. Still, you have to call an agent for more information about boat and RV insurance. While you can get homeowner, renters, and mobile home insurance online, you have to speak to an agent if you want landlord insurance.
Although small businesses are covered under the personal insurance section, there’s a whole extra insurance area that Liberty Mutual provides for larger business concerns.
Liberty Mutual says, “we know your business. We understand how to protect it.” The company offers business insurance for 24 different business categories, including:
- Not for Profit
- Scrap Metal
..And many more.
This area of Liberty Mutual’s website directs potential business customers to type in their zip code to find a local agent for an insurance quote.
Now let’s turn our attention to State Farm’s insurance offers:
Liberty Mutual vs. State Farm: State Farm’s Insurance Offer
State Farm divides its insurance policy offers into eight categories, each of which is then sub-divided into different areas, which we outline below:
like Liberty Mutual, State Farm offers various types of vehicle insurance. These include:
- Car insurance
- Motorcycle insurance
- Boat insurance
- Off-road vehicle insurance
- Motorhome insurance,
- Roadside assistance insurance
Home and Property
Here, you’ll find the following policies:
- Home insurance
- Condo insurance
- Renters insurance
- Rental property for landlords
- Personal articles
- Manufactured home farm and ranch insurance
- Identity restoration insurance.
Under this category, you’ll find the following policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Change policy insurance
- Change beneficiary insurance
Four areas are covered here:
- Supplemental health insurance
- Medicare supplement insurance
- Individual medical insurance
- Change policy insurance
Areas covered in this category are:
- Long-term disability insurance
- Short-term disability insurance
- Individual credit insurance
State Farm has teamed with pet insurance provider Trupanion to provide pet medical insurance for your much-loved furry friends.
Areas covered here include personal liability insurance, business insurance, and professional liability insurance.
Here’s where you go if you’re looking for the following policies:
- Business owners policies
- Specialty liability insurance
- Workers comp insurance
- Builders risk insurance
- Fidelity bonds
- Commercial auto insurance
Where business owners policies (BOP) are concerned, you can then click through to an area on the State Farm website that’s explicitly dedicated to businesses across 12 different categories, including:
- Contracts and home services
- Food shops and restaurants
- Religious organizations
- Residential and business landlords
…To name a few.
If you’re interested in getting any kind of quote from State Farm, you have two options: online or via an agent. The State Farm home page makes it simple.
You just input your zip code and choose which type of policy you want an online quote from the drop-down menu. You can’t proceed without a US zip code.
The discounts we could see were for auto insurance, including up to a 17% discount if you bundle auto policies, for example, for different members of your household. There’s also a scheme for safe-driving young adults offering up to 15% off. That’s as well as the Drive, Sage, and Save™ scheme with discounts of up to 30%.
Like Liberty Mutual, you can “bundle” some policies to save money, such as home insurance and car insurance.
Liberty Mutual vs State Farm: Their Pros and Cons
Finding the right policy provided by a company that understands your needs can be frustrating and time-consuming. So, here’s our go-to guide on each company’s advantages and disadvantages to help you make a clearer decision.
Liberty Mutual’s Pros:
- A long and well-established history in the insurance industry
- You can manage your insurance via the Liberty Mutual app.
- There are claims-free discounts available.
- Liberty Mutual provides cheaper insurance policies overall.
Liberty Mutual’s Cons:
- You can’t get all your quotes online.
- All business quotes have to be dealt with by an agent.
- Optional coverages can drive up the price.
State Farm’s Pros:
- It also offers banking and investment features.
- You can manage your insurance via the State Farm app.
- All quotes are obtainable online and via agents.
- You can get multi-policy discounts.
State Farm’s Cons:
- State Farm has just an average overall customer satisfaction rating.
- It’s not the cheapest option for auto insurance.
- To get a quote, you’ll need to submit some personal info.
- Some of its coverage is only available in a package.
Liberty Mutual vs. State Farm: Customer Support
Insurance policies aren’t something you want to go into blind. It’s only natural to have questions – and plenty of them! This is where high-quality customer service is worth its weight in gold.
But, before we get into the nitty-gritty of what each provider offers in this department, it’s worth noting that reviews on both companies are mixed and often fall below average. This is why we advise you to do your own research and go with your gut.
You can contact Liberty Mutual on the phone. They also provide a Roadside Assistance number on their website. Note that additional charges apply to this line if your policy doesn’t include towing and labor coverage.
Customer support is available 24/7, 365 days a year when you sign up. Aside from phoning in, you can also send a text to a representative.
Aside from contact details, you’ll also find plenty of self-help resources to manage your policy. This includes frequently asked questions and a listing of all your billing and payment options.
Finding a phone line that will help with your specific inquiry shouldn’t be difficult with State Farm. They provide different telephone numbers for:
- Technical issues
- Comments and questions
- Bank accounts (Mon-Fri 6 a.m – 11 p.m CT, Sat – Sun/Holidays 8 a.m – 8 p.m)
- Credit cards
- Auto/home/property claims
- Health claims
- Life claims
- Auto glass only claims
- Emergency road service (24/7)
A definite bonus-point for their customer support is the availability of a number to dial if you suffer from hearing or speech impairments. State Farm has you covered!
You can even enter your Zip Code, and the website will find an agent near you. You can also search by name, address, language, or product.
In their customer care section, you’ll find all the apps and processes you need to manage your policy and account. There are also answers to frequently asked questions organized by category.
Answer: Yes. The good news is that both Liberty Mutual and State Farm offer various bundles so you can combine your homeowner’s insurance and auto insurance into a cheaper package.
Answer: A variety of discounts are available with both providers. However, their offers aren’t the same. Liberty Mutual offers discounts for military personnel, homeowners, and those that pay in full. Liberty Mutual also provides claim-free discounts.
Overall, State Farm has fewer discounts available. That said, you’ll have to check with both providers to see whether they’re running any deals that could benefit you.
Answer: While both providers offer insurance policies that cover hybrid and electric cars, currently, they don’t offer discounts on these kinds of vehicles. Different insurance providers might provide you with a deal for your sustainable choice, so it’s worth shopping around.
Answer: Liberty Mutual offers ‘accident forgiveness.’ That means if you’re accident-free for five years, independent of which insurance company you were with, they’ll forgive your first accident, and your rates won’t go up. This policy applies to all household members, so even teenagers are included! State Farm doesn’t offer accident forgiveness.
Liberty Mutual vs. State Farm: Our Verdict
Liberty Mutual and State Farm are both sound insurance providers that offer complete insurance policy lines. They cover everything from homeowner’s insurance to auto insurance to life insurance policies. This makes it easy for customers to create bundled policies that suit their exact needs and enjoy discounts in the process.
Overall, we found that Liberty Mutual works out quite a bit cheaper than State Farm. In fact, State Farm is one of the most expensive insurance providers. Suppose you’re unsure about their reviews and are looking for a cheaper insurance policy. In that case, Liberty Mutual might be a better choice for you.
State Farm also sells policies exclusively through local agents. In contrast, Liberty Mutual sells policies online, over the phone, or through independent agents. You might have a preference for which you find more convenient!
So, Liberty mutual vs. State farm? In the end, it’s up to you to decide which company you trust more and which provides the best discounts for the policies you’re looking for.
Let us know in the comments below if you’ve had experience with either insurance provider before. We look forward to hearing from you!