State Farm vs Liberty Mutual
State Farm is the cheaper of these two on the published averages. Whether that makes it the better buy depends on three things the price never tells you.
The verdict
Rounds split 1–1; State Farm edges it on total score.
On averages State Farm is cheaper by about $831 a year — but get your own quote from both, because the published averages disagree with each other by nearly as much as they differ from one another.
Choose State Farm if…
- • You want State Farm's lower average rate
- • You want a telematics programme that cannot raise your rate
Choose Liberty Mutual if…
- • You want Liberty Mutual's particular strengths
- • You want a telematics programme that cannot raise your rate
Round by round
- Round 1What you actually payState Farm winsState Farm9/10
$2,030
average annual full-coverage premium
- Cheaper on the published averages
- Figures from independent rate studies
- Your own quote may differ sharply
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
Liberty Mutual5/10$2,861
average annual full-coverage premium
- Rates vary widely by driver
- Figures from independent rate studies
- About $831/yr more on average
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
About $831 a year apart — and State Farm is the cheaper one.
- Round 2What happens when you claimLiberty Mutual winsState Farm6/10
no standout record
nothing notable in the published studies
- Large enough to have a mature claims operation
- Not a leader on claims satisfaction
Source: https://www.jdpower.com/business/insurance/auto-claims-satisfaction-study
Liberty Mutual8/10see note
third on the J.D. Power 2025 auto claims satisfaction study, behind Erie and NJM
- Among the better records on the public data
Source: https://www.jdpower.com/business/insurance/auto-claims-satisfaction-study
The cheap ones are rarely the ones you want on the phone after a crash.
- Round 3Size, reach and who you deal withTieState Farm7/10
largest auto insurer in the US, agent-based
market position
- Established national carrier
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
Liberty Mutual7/10top-five auto insurer
market position
- Established national carrier
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
Both are big enough to pay a claim. That is the floor, not a feature.
State FarmSide by side
- Rates vary widely by driver
- Figures from independent rate studies
- Anyone can buy it
- Established national carrier
- Rates vary widely by driver
- Figures from independent rate studies
- Among the better records on the public data
- Established national carrier
- About $497/yr more on average
- Advertised maximum is rarely reached
- Typical real saving is nearer 10%
- Not a leader on claims satisfaction
- About $831/yr more on average
- About $801/yr more on average
- Advertised maximum is rarely reached
- Typical real saving is nearer 10%