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Liberty Mutual vs State Farm
State Farm leads on size, AM Best rating and J.D. Power regional scores; Liberty Mutual scores better on claims and adds independent agents and extras.
Verdict
State Farm and Liberty Mutual are both mutual-owned, but they reach customers differently. State Farm, the largest U.S. auto insurer, wrote $69.16 billion of private passenger auto premium in 2025 (18.61%) through more than 19,200 captive agent offices. Liberty Mutual, seventh, wrote $10.41 billion (2.80%). It sells direct online and by phone, through its own agents and through more than 20,000 independent agencies, which it served under the Safeco name until April 2026.
State Farm has the higher AM Best rating, A+ (Superior), though AM Best downgraded it from A++ in November 2025. Liberty Mutual is rated A (Excellent), affirmed in September 2025. On overall satisfaction State Farm is well ahead. It beat the regional average in nine of 11 regions in the J.D. Power 2026 U.S. Auto Insurance Study, while Liberty Mutual did so only in Texas. Claims are a different story. Liberty Mutual placed third of 20 in the J.D. Power 2025 claims study with 730, ahead of State Farm's 716 (tied 8th). Liberty Mutual also offers more optional coverage, including Better Car Replacement, original parts, a lifetime repair guarantee and a deductible fund.
Neither company is reliably cheaper. Get quotes from both.
Choose Liberty Mutual if
- You want to buy online or through an independent agent who can compare other carriers.
- You live in Massachusetts or Rhode Island, where State Farm doesn't write new auto business.
- Claims handling is your priority. Liberty Mutual was third of 20 in J.D. Power's 2025 claims study.
- You want Better Car Replacement, original manufacturer parts or a lifetime repair guarantee.
- You are a teacher (teachers' auto insurance) or in the military (military discount).
Choose State Farm if
- You want a single local agent for auto, home and life.
- Overall satisfaction matters: State Farm ranked first in the Northwest and second in four regions in 2026.
- You want the higher AM Best rating and a mutual that paid a $5 billion auto dividend in 2026.
- You live in California, where Liberty Mutual scored 541 in 2026 and State Farm 632.
Key differences
| Liberty Mutual | State Farm | |
|---|---|---|
| How you buy | Direct, own agents and 20,000+ independent agencies | Captive agents, plus online and app |
| Availability | Nationwide; some options vary by state | Not sold to new customers in MA or RI |
| AM Best | A (Excellent), September 2025 | A+ (Superior), November 2025 |
| J.D. Power 2025 claims study | 730, 3rd of 20 | 716, tied 8th of 20 |
| Usage-based program | RightTrack (10% to 15% to enroll, up to 30%) | Drive Safe & Save (10% to enroll, up to 30%) |
| Standout coverages | Better Car Replacement, original parts, Deductible Fund | Rideshare driver coverage, car rental and travel expenses |
RightTrack applies only to certain coverages, and Drive Safe & Save isn't offered in California, Massachusetts or Rhode Island, so check what your state allows (see telematics programs from the major insurers compared). Liberty Mutual's online purchase discount is unavailable in nine states. Compare equal limits and deductibles on the car insurance quote comparison worksheet.
Side by side
| Liberty Mutual | State Farm | |
|---|---|---|
| Type | National carriers | National carriers |
| Customer service | 800-295-2723 | 800-782-8332 |
| Report a claim | 800-225-2467 | 800-732-5246 |
| Roadside assistance | 877-762-3101 | 877-627-5757 |
| Website | libertymutual.com | statefarm.com |
| NAIC group | Liberty Mutual Group | State Farm Group |
| Headquarters | Boston, Massachusetts | Bloomington, Illinois |
| Founded | 1912 | 1922 |
| Ownership | Mutual holding company (Liberty Mutual Holding Company Inc.) | Mutual (owned by its policyholders) |
| Where it sells auto insurance | Sold nationally online, by phone and through agents; some coverages, discounts and RightTrack options vary by state | All states and Washington, D.C., except Massachusetts and Rhode Island, where State Farm does not quote new auto business |
| How it sells | Direct (online, phone and app) and agents, including more than 20,000 independent agencies (formerly under the Safeco brand) | Captive (exclusive) agents, plus online and app service |
| U.S. private passenger auto rank (2025) | 7 | 1 |
| Auto premiums written (2025) | $10.41 billion | $69.16 billion |
| U.S. market share (2025) | 2.80% | 18.61% |
| AM Best financial strength | A (Excellent) | A+ (Superior) |
| J.D. Power | Third of 20 (score 730) in the J.D. Power 2025 U.S. Auto Claims Satisfaction Study; above average only in Texas (662) in the J.D. Power 2026 U.S. Auto Insurance Study | Ranked highest in the Northwest region (667) in the J.D. Power 2026 U.S. Auto Insurance Study; scored 716, tied for 8th of 20, in the J.D. Power 2025 U.S. Auto Claims Satisfaction Study |
| Usage-based program | RightTrack (Continuous and 90-Day) | Drive Safe & Save; Steer Clear (drivers under 25) |
| Mobile app | Liberty Mutual Mobile app (iOS, Android) | State Farm mobile app (iOS, Android) |
| Best suited to | Drivers who want to buy direct or through an independent agent, value add-ons like Better Car Replacement and a lifetime repair guarantee, and put weight on claims service. | Drivers who want a local agent, a mutual insurer that returns profits to policyholders, and auto, home and life from one company. |
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Facts come from each insurer's profile, where every figure carries its source and review date. Prices are personal: compare quotes, not just companies.
Last reviewed October 4, 2026