American Family vs. Liberty Mutual Car Insurance (2021)

Our American Family vs. Liberty Mutual car insurance guide will help you decide between two excellent companies. We offer comparisons of rates based on your individual characteristics such as age, driving record, and credit score. Liberty Mutual has higher rates than American Family across the board, but Liberty Mutual has some interesting discounts to offset the higher rates. Who knows which company is a better option for you. Continue reading to make your choice.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Feb 22, 2021

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The Highlights

  • Both American Family and Liberty Mutual have great customer satisfaction and a strong financial future.
  • Liberty Mutual has an incredibly high customer complaint ratio.
  • American Family has lower car insurance rates for female teen drivers.
  • Liberty Mutual offers more discounts than American Family.
  • American Family has lower car insurance rates across the board and has better rates for drivers with a low credit score.

Are you trying to decide between American Family and Liberty Mutual for your car insurance needs? Both companies are good options based on financial strength, but a specific discount may be what curves your decision.

In our American Family vs. Liberty Mutual car insurance guide, we compare rates by age, driving record, and credit score. We also compare available discounts and ratings from agencies with a credible and trustworthy view of car insurance companies.

Keep reading to compare American Family auto insurance and Liberty Mutual auto insurance, or enter your ZIP code to start comparing affordable car insurance companies in your local area.

Is American Family car insurance or Liberty Mutual car insurance cheaper based on age?

Our confidence and awareness as drivers increase over time as we gain more experience on the roads. This is why age is such a big factor in determining your car insurance rates.

In some states, it is legal to also use gender and marital status to determine car insurance rates. Take a look at a comparison of American Family insurance rates and Liberty Mutual insurance rates based on age, gender, and marital status.

American Family vs. Liberty Mutual Average Annual Car Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusAmerican Family Average Annual RatesLiberty Mutual Average Annual Rates
Single 17-year-old female$5,997$11,621
Single 17-year-old male$8,131$13,719
Single 25-year-old female$2,289$3,960
Single 25-year-old male$2,695$4,503
Married 35-year-old female$2,203$3,803
Married 35-year-old male$2,224$3,857
Married 60-year-old female$1,993$3,445
Married 60-year-old male$2,014$3,681
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American Family car insurance rates are anywhere from 67 to 94 percent cheaper than Liberty Mutual car insurance rates across the board. Liberty Mutual rates for female teen drivers is nearly double that of American Family.

American Family is definitely a better choice than Liberty Mutual if you have a teen driver in your household.

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Is American Family car insurance or Liberty Mutual car insurance cheaper based on driving record?

If you have a history of traffic violations such as speeding tickets, accidents, or DUIs, your car insurance rates will be high no matter what company you choose, but certain companies offer discounts for taking driving courses depending on the state.

American Family vs. Liberty Mutual Average Annual Car Insurance Rates by Driving Record
Driving RecordAmerican Family Average Annual RatesLiberty Mutual Average Annual Rates
Clean record$2,694$4,774
With one speeding violation$3,026$5,701
With one accident$3,723$6,205
With one DUI$4,330$7,613
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Again, American Family is the better choice if you have a bad driving record. But let’s take a closer look at how each company handles the different types of infractions.

American Family does take more seriously causing an accident than getting a speeding ticket. American Family rates for having one speeding ticket will increase by 12 percent. But if you have an accident on your record, as compared to a driver with a clean record, rates will increase 38 percent.

Liberty Mutual is a little more lenient on drivers who incur an accident on their record. Compared to a driver with a clean record, a driver with a speeding ticket will increase by 19 percent. However, for drivers that cause an accident, their rates increase by 30 percent in comparison to a driver with a clean record.

Both companies, however, take DUIs very, and equally, seriously. Liberty Mutual and American Family rates increase by about 60 percent if you get a DUI.

Is American Family car insurance or Liberty Mutual car insurance cheaper based on credit score?

Going through a divorce or medical problems can plummet your credit score in a matter of months. Car insurance companies factor in your credit score when determining your car insurance rates because the numbers show that drivers with higher credit scores are less likely to file a claim and, therefore, are better drivers.

If you think this is unfair, you aren’t the only one. Several states have outlawed rates based on credit score along with gender and marital status. Let’s take a look at how American Family and Liberty Mutual handle drivers with low credit scores.

American Family vs. Liberty Mutual Average Annual Car Insurance Rates by Credit Score
Credit History SummaryAmerican Family Average Annual RatesLiberty Mutual Average Annual Rates
Good Credit (670-739)$2,692$4,388
Fair Credit Score (580-669)$3,170$5,604
Poor Credit Score (300-579)$4,468$8,802
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American Family is more lenient than Liberty Mutual on those with fair or poor credit when it comes to determining car insurance rates. Drivers with poor credit will pay twice as much as a driver with good credit with Liberty Mutual.

If you have a credit score on the lower end, American Family is a better option than Liberty Mutual.

State laws regarding car insurance fall on a wide spectrum; for example, drivers in Michigan pay some of the highest rates in the country because their state requires them to turn to their own insurance company no matter who is at fault.

Study up on your state’s car insurance laws and review rates from a variety of companies by reading your state car insurance guide. 

You may live in a state where basing car insurance on credit score is illegal.

Does American Family or Liberty Mutual have better car insurance discounts?

If you have a bad driving record or a poor credit score, you will want to take advantage of the best discounts from the best companies. There are some strange discounts out there, and it all depends on what a company values most.

Unfortunately, our data source shows only three discounts offered by American Family: defensive driver, airbags, and using their driving device or app.

American Family vs. Liberty Mutual Car Insurance Discounts
DiscountsAmerican FamilyLiberty Mutual
Adaptive Cruise ControlN/A5
Adaptive HeadlightsN/A5
Anti-lock BrakesN/A5
Anti-TheftN/A20
Daytime Running LightsN/A5
Defensive Driver1010
Driver's EdN/A10
Driving Device/App4030
Electronic Stability ControlN/A5
Federal EmployeeN/A10
Forward Collision WarningN/A5
Full PaymentN/A$5
Further EducationN/A10
Good StudentN/A22.5
Green VehicleN/A10
Membership/GroupN/A10
MilitaryN/A4
Multiple PoliciesN/A20
Multiple VehiclesN/A10
New AddressN/A5
New GraduateN/A5
Newly LicensedN/A5
NewlywedsN/A5
OccupationN/A10
Passive Restraint30N/A
Recent RetireesN/A4
Students & AlumniN/A10
Switching ProviderN/A10
Vehicle RecoveryN/A35
VIN EtchingN/A5
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But if you have a vehicle recovery system, you can save 35 percent with Liberty Mutual. So it really pays to check out all of the discounts every company offers.

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Does American Family or Liberty Mutual have better car insurance mobile apps?

Most of the larger car insurance companies offer both a driving app and a general mobile app. The driving app may use your phone’s mechanisms or the company may require you to install a device in your car. This is called usage-based car insurance, and it has become an individualized trend in the last decade or so.

A general mobile app offered by a car insurance company would allow you to pay your bill, change your coverage levels, or provide electronic insurance verification if pulled over.

Read about American Family’s KnowYourDrive and Liberty Mutual’s RightTrack usage-based car insurance apps in our American Family company review and our Liberty Mutual company review.

How does American Family and Liberty Mutual car insurance compare in financial strength and customer satisfaction?

Getting the lowest possible car insurance rates is great, especially if you get to take advantage of a discount that fits your situation. But just as important as discounts is a company’s financial strength, customer satisfaction with the claims process, and customer complaints. The following three agencies provide insight on 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.

American Family vs Liberty Mutual Financial Strength and Credit Ratings
AgenciesAmerican FamilyLiberty Mutual Ratings
AM BestA (Excellent)A (Excellent)
Consumer Reports8988
NAIC Complaint Ratio0.79 (total of 73 complaints)5.95 (total of 222 complaints)
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Both American Family and Liberty Mutual are highly competitive keeping claims process customer satisfaction high. Additionally, the financial future of both companies is strong. However, Liberty Mutual has a much higher customer complaint ratio. Before choosing Liberty Mutual, be sure to get more details on the NAIC website.

Ready to buy car insurance? When you’re unsure which company to choose, you can always use our FREE comparison tool to compare American Family vs. Liberty Mutual car insurance to other companies’ car insurance quotes in your area.

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