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State Farm vs. Liberty Mutual Car Insurance Comparison [2024]

On average, State Farm charges $86 monthly, while Liberty Mutual's average monthly cost is $91. State Farm offers coverage in the United States and Canada, whereas Liberty Mutual has a broader international presence. Read our State Farm vs. Liberty Mutual car insurance comparison if you're considering either company.

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Melanie Musson

Published Insurance Expert

Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

Published Insurance Expert

Kristen Gryglik

Licensed Insurance Agent

Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...

Licensed Insurance Agent

UPDATED: Dec 21, 2023

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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 stack up.

Then enter your zip code into our 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

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.

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Frequently Asked Questions

What is the difference between State Farm and Liberty Mutual car insurance?

State Farm and Liberty Mutual are both well-established insurance companies that offer similar coverage options. However, State Farm has a larger presence in the US and Canada, while Liberty Mutual is more internationally focused.

How long has State Farm been in the insurance business?

State Farm has been in the insurance business since 1922 when it was founded by George J. Mecherle. It started by offering car insurance to farmers and has since grown to provide a range of insurance and financial products.

What types of insurance does State Farm offer besides car insurance?

In addition to car insurance, State Farm offers insurance coverage for homes, motorcycles, boats, renters, and life insurance. They also provide retirement planning and banking services.

How does State Farm rank in terms of customer satisfaction?

According to a customer service study conducted by J.D. Power and Associates in 2009, State Farm received positive ratings. On a scale of 1 to 5, State Farm was rated among the best in terms of customer satisfaction.

What are some insurance products offered by Liberty Mutual?

Liberty Mutual offers a range of insurance products, including car insurance, home insurance, renters insurance, life insurance, and business insurance. They also provide coverage for motorcycles, boats, and other recreational vehicles.

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