Allstate vs. Liberty Mutual Car Insurance (2021)
Our Allstate vs. Liberty Mutual car insurance guide will help you decide between two companies with strong financial stability. Allstate is best for drivers with bad credit, and Liberty Mutual has better rates for teen drivers. Liberty Mutual has to navigate more customer complaints, and both Liberty Mutual and Allstate have considerably high rates for those with a bad driving record.
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Written by
D. Gilson, PhD
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Reviewed by
Leslie Kasperowicz
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UPDATED: Feb 5, 2021
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- Both Allstate and Liberty Mutual have strong customer satisfaction and a bright financial future.
- Liberty Mutual has an incredibly high customer complaint ratio and lower car insurance rates for teen drivers.
- Both Allstate and Liberty Mutual offer competitive discounts — it just depends on your situation.
- Allstate has lower car insurance rates for having bad credit.
- Both Allstate and Liberty Mutual increase rates a great deal for having a bad driving record.
Both Allstate insurance and Liberty Mutual insurance have a stable financial past and future. But which one is better?
Allstate and Liberty Mutual are two of the best car insurance companies, but how do you know which one is best for you?
In our Allstate vs. Liberty Mutual car insurance guide, we take a closer look at rates by age, driving record, credit score, available discounts, and ratings from credible and trustworthy third-party agencies.
Ready to buy car insurance? Keep reading to compare Allstate auto insurance and Liberty Mutual auto insurance, or find affordable car insurance rates by entering your ZIP code and start comparing multiple companies in your local area.
Table of Contents
Is Allstate car insurance or Liberty Mutual car insurance cheaper based on age?
As we get older and drive in different places and situations, we become more experienced. Car insurance companies use age as a factor in determining your car insurance rates.
However, gender and marital status are a different story in some states that have outlawed basing car insurance rates on these additional factors.
| Age Gender and Marital Status | Allstate Average Annual Rates | Liberty Mutual Average Annual Rates |
|---|---|---|
| Single 17-year-old female | $9,282 | $11,621 |
| Single 17-year-old male | $10,643 | $13,719 |
| Single 25-year-old female | $3,425 | $3,960 |
| Single 25-year-old male | $3,571 | $4,503 |
| Married 35-year-old female | $3,156 | $3,803 |
| Married 35-year-old male | $3,123 | $3,857 |
| Married 60-year-old female | $2,913 | $3,445 |
| Married 60-year-old male | $2,991 | $3,681 |
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For those 25 and older, Liberty Mutual car insurance rates are an average of 21 percent higher than Allstate car insurance rates.
Liberty Mutual is a better choice than Allstate if you have a teen driver.
You can save up to 27 percent by insuring your teen driver through Allstate rather than Liberty Mutual.
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Is Allstate car insurance or Liberty Mutual car insurance cheaper based on driving record?
Another completely legitimate factor to base car insurance rates on is your driving record. Any traffic violations such as speeding tickets, accidents, or DUIs will affect your rates no matter what insurance company you choose.
| Driving Record | Allstate Average Annual Rates | Liberty Mutual Average Annual Rates |
|---|---|---|
| Clean record | $3,820 | $4,774 |
| With one speeding violation | $4,484 | $5,701 |
| With one accident | $4,988 | $6,205 |
| With one DUI | $6,261 | $7,613 |
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Both Liberty Mutual and Allstate take infractions seriously. Allstate car insurance rates increase by 17 to 63 percent as you rack up speeding tickets, cause accidents, or drive under the influence.
Liberty Mutual car insurance rates for those with a driving record are just a bit lower but not enough to really make a huge difference when choosing between the two companies. Liberty Mutual rates increase by only 19 to 59 percent.
So, it doesn’t matter which company you choose: Allstate or Liberty Mutual. Your rates with a bad driving record will be just as high with either company; however, Liberty Mutual is a few percentage points lower, and that can make a difference.
Is Allstate car insurance or Liberty Mutual car insurance cheaper based on credit score?
Do you pay your bills on time consistently every month? If so, you should have a pretty strong credit score. But if you have experienced financial trauma such as divorce or accruing large medical bills, you may have poor credit.
Similar to gender and marital status, every year, more and more states are outlawing car insurance rates based on credit score. Car insurance companies see your credit score as a reflection of how well you will pay your car insurance premiums and statistics show those with a higher credit score are more responsible drivers and less likely to file a claim.
| Credit History Summary | Allstate Average Annual Rates | Liberty Mutual Average Annual Rates |
|---|---|---|
| Good Credit (670-739) | $3,860 | $4,388 |
| Fair Credit Score (580-669) | $4,581 | $5,604 |
| Poor Credit Score (300-579) | $6,491 | $8,802 |
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With that said, Allstate is more lenient than Liberty Mutual on those with fair or poor credit. Drivers with fair or poor credit will pay higher rates with Allstate (19 to 68 percent more), but, if you choose Liberty Mutual and you have a poor credit score, expect your rates to be at least double that of drivers with good credit.
If you have a credit score on the lower end, Allstate is the better choice.
The top three factors that affect your car insurance rates are your age, your driving record, and where you live. State laws about car insurance vary widely. Read up about your state laws and car insurance rates in our state car insurance guide before choosing Allstate or Liberty Mutual car insurance based on credit score alone.
Does Allstate or Liberty Mutual have better car insurance discounts?
If you have a lower credit score or a bad driving record, it’s important to investigate discounts that Allstate and Liberty Mutual have to offer. Even a 10 percent discount can make a difference when choosing between two companies.
| Discounts | Allstate | Liberty Mutual |
|---|---|---|
| Adaptive Cruise Control | N/A | 5 |
| Adaptive Headlights | N/A | 5 |
| Anti-lock Brakes | 10 | 5 |
| Anti-Theft | 10 | 20 |
| Claim Free | 35 | N/A |
| Daytime Running Lights | 2 | 5 |
| Defensive Driver | 10 | 10 |
| Distant Student | 35 | N/A |
| Driver's Ed | 10 | 10 |
| Driving Device/App | 20 | 30 |
| Early Signing | 10 | N/A |
| Electronic Stability Control | 2 | 5 |
| Farm Vehicle | 10 | N/A |
| Federal Employee | N/A | 10 |
| Forward Collision Warning | N/A | 5 |
| Full Payment | 10 | $5 |
| Further Education | N/A | 10 |
| Good Student | 20 | 22.5 |
| Green Vehicle | 10 | 10 |
| Membership/Group | N/A | 10 |
| Military | N/A | 4 |
| Multiple Policies | 10 | 20 |
| Multiple Vehicles | N/A | 10 |
| New Address | N/A | 5 |
| New Graduate | N/A | 5 |
| Newer Vehicle | 30 | N/A |
| Newly Licensed | N/A | 5 |
| Newlyweds | N/A | 5 |
| Occupation | N/A | 10 |
| On Time Payments | 5 | N/A |
| Paperless Documents | 10 | N/A |
| Paperless/Auto Billing | 5 | N/A |
| Passive Restraint | 30 | N/A |
| Recent Retirees | N/A | 4 |
| Safe Driver | 45 | N/A |
| Senior Driver | 10 | N/A |
| Students & Alumni | N/A | 10 |
| Switching Provider | N/A | 10 |
| Utility Vehicle | 15 | N/A |
| Vehicle Recovery | 10 | 35 |
| VIN Etching | N/A | 5 |
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Allstate has 24 car insurance discounts, and Liberty Mutual has 28 discounts.
The highest discount you can get with Liberty Mutual is 35 percent, and that is for having a vehicle recovery system. Allstate offers three discounts between 30 and 35 percent, and those are for having airbags, being claim-free, and being a distant student.
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Does Allstate or Liberty Mutual have better car insurance mobile apps?
Usage-based car insurance has become more popular in the last decade or so, and all of the larger car insurance companies have either driving apps or use a device installed into your car. The larger companies also have a separate app you can use to access your policy documents, make changes to your coverages, or pay your bill.
Read about Allstate’s Drivewise and Liberty Mutual’s RightTrack usage-based car insurance apps in our Allstate company review and our Liberty Mutual company review.
How do Allstate and Liberty Mutual car insurance compare in financial strength and customer satisfaction?
Choosing a car insurance company based on rates alone isn’t always the best route. Taking a look at customer satisfaction ratings, total complaints, and future financial stability are factors to consider as well. The following three agencies provide insight into these factors:
A.M. Best scores companies based on their ability to meet their ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.
Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.
And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers against the total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.
| Agencies | Allstate Ratings | Liberty Mutual Ratings |
|---|---|---|
| AM Best | A+ (Excellent) | A (Excellent) |
| Consumer Reports | 88 | 88 |
| NAIC Complaint Ratio | 0.5 (total of 163 complaints) | 5.95 (total of 222 complaints) |
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Both Allstate and Liberty Mutual are highly competitive in keeping customer satisfaction through the claims process high. The financial future of both companies is strong.
However, Liberty Mutual has a higher customer complaint ratio. Before choosing Liberty Mutual, be sure to get more details on the NAIC website.
When you’re unsure which company to choose, you can always use our free comparison tool to compare car insurance quotes to other companies in your area.