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Yahoo Finance Plus Allstate vs Liberty Mutual
If you’re getting car insurance quotes, you may be considering Allstate or Liberty Mutual for your coverage. Both are well-known companies, but there are important differences between the two. Bankrate compared the two carriers based on factors like average rates, customer satisfaction scores, financial strength ratings, coverage options, available discounts and mobile experience.
Founded in 1931, Allstate could be a good option for drivers looking for a variety of discounts and driver rewards. The company has a telematics program and deductible rewards for drivers who go a period of time without filing a claim. Allstate is the fourth largest auto insurer in the country, with 10 percent of the market.
Liberty Mutual, which has been writing policies since 1912, has a robust online presence and highly-rated mobile app. Headquartered in Boston, it is the sixth-largest writer of car insurance policies in the U.S. Liberty Mutual may appeal to drivers with older vehicles as it offers endorsements for better car replacement and lifetime repair guarantees at approved shops.
Both insurance providers have pros and cons, and Bankrate’s research may help you choose the best auto insurance company for you.
Allstate | Liberty Mutual | |
|---|---|---|
Bankrate score | 3.8 | 4.1 |
Tier 1 | 3.5 | 3.5 |
Tier 2 | 4.0 | 5.0 |
Tier 3 | 4.3 | 4.3 |
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
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Our verdict
It’s difficult to compare average premiums between the two carriers because rate data is not available for Liberty Mutual. Allstate’s rates, however, tend to run somewhat higher than the national average. Both companies offer a range of discounts that may help lower your costs, but when it comes to endorsements, Liberty Mutual has more options for building a robust policy.
As far as customer satisfaction goes, Allstate has the edge; it scores above average on J.D. Power’s Auto Claims Satisfaction Study, while Liberty Mutual is below the national average.
Allstate vs Liberty Mutual comparison
When looking at Liberty Mutual vs. Allstate, both companies have pros and cons, and neither is going to be the best option for all drivers all the time. To find the best choice for your own needs, you may want to consider the strengths and weaknesses of each company and consider getting quotes from both to compare costs.
Allstate pros and cons
Pros | Cons |
|---|---|
Many discounts for potential policy savings | Average full coverage rates are above the national average |
Liberty Mutual pros and cons
Pros | Cons |
|---|---|
Numerous discounts for potential savings | Above-average complaint index for private passenger product with the NAIC |
Is Allstate cheaper than Liberty Mutual?
Price can be one of the factors—though likely not the only one—that plays into your choice of insurer. Although pricing data is not available for Liberty Mutual, the Allstate and national average rates below may help provide context when comparing against your own personalized quotes.
Allstate’s average rates are mixed, with above-average rates for full coverage and below-average rates for minimum coverage.
Average annual premium for full coverage | Average annual premium for minimum coverage | |
|---|---|---|
Allstate | $2,630 | $545 |
National average | $2,014 | $622 |
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
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Comparing rates for drivers with poor credit
In most states — with the exception of California, Hawaii, Michigan and Massachusetts — your credit-based insurance score could affect your car insurance rates. Generally, drivers with higher credit scores will pay lower rates than drivers with poor credit scores. As rates for Liberty Mutual are not available, we compared Allstate’s average full coverage rates to the national average. Allstate’s average full coverage rates are higher than the national average across all credit tiers.
Credit Score | National average | Allstate |
|---|---|---|
Poor | $3,479 | $3,496 |
Average | $2,176 | $2,731 |
Good | $2,014 | $2,630 |
Excellent | $1,764 | $2,440 |
Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
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Comparing rates for young drivers
In most states, your age may have a significant impact on your car insurance rates. Young drivers tend to pay higher premiums than those with more experience, since data shows that they are more likely to be involved in accidents. The rates below are for a young driver insured on their parents’ full coverage policy. Once again, Allstate’s rates tend slightly higher than the national average.
National average | Allstate | |
|---|---|---|
$4,392 | $4,461 | |
$4,102 | $4,267 | |
$3,837 | $4,184 | |
$3,345 | $3,997 | |
$3,149 | $3,888 |
Comparing rates for adult drivers
In line with the national average, Allstate’s average rates for adult drivers drop as you age and gain more experience on the road. However, your own rate will be influenced by a range of personal rating factors beyond your age, including your vehicle type, driving history, and, in many states, credit rating and gender. The quoted rates are for drivers on their own policy, which explains the discrepancy in prices between 18-year-olds in this table and the one above, where the quotes are based on individuals on their parents’ policy.
National average | Allstate | |
|---|---|---|
Age 18 | $6,110 | $7,089 |
$2,473 | $3,188 | |
$2,125 | $2,641 | |
$2,014 | $2,630 | |
$1,824 | $2,376 |
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Teens: Rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married parents’ policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
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Comparing rates for high-risk drivers
Drivers with clean driving records usually pay lower auto insurance rates, and Allstate’s average rates follow this trend. Speeding tickets, at-fault accidents and DUI convictions are likely to increase your premium regardless of your insurance company. You may also find that a company will not be willing to write a policy for you if you have a high-risk incident, like a DUI, on your record. Allstate’s rates are once again significantly higher than the national average across all the driving incidents we investigated.
National average | Allstate | |
|---|---|---|
Clean driving record | $2,014 | $2,630 |
$2,427 | $3,123 | |
$2,854 | $3,397 | |
$3,091 | $3,817 |
Rates were calculated by evaluating our 2023 base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
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Allstate vs Liberty Mutual: discounts
Allstate and Liberty Mutual each offer several car insurance discounts that may help customers save on their premiums. Both carriers offer common discounts like multi-policy, paperless billing and good student. Some of the more unique discounts are listed below for each company, but keep in mind that eligibility will vary by state, and these discounts may not be available in all areas.
Allstate
New car discount: If your car is the current year’s model or one year old, and you are the first owner, Allstate may discount your premium.
Early signing discount: If you buy an Allstate policy seven days or more before the effective date, you may save.
Deductible Rewards program: While not technically a discount, if you enroll in Allstate’s Deductible Rewards program, your deductible could be lowered for every year you go without an accident.
Liberty Mutual
Accident/violation free: Drivers who maintain clean driving records may save money with Liberty Mutual.
Online purchase discount: You may get a discount just for purchasing your policy from the Liberty Mutual website.
Homeowner discount: Simply being a homeowner may earn you a discount on your auto insurance
Usage-based insurance comparison: Allstate vs Liberty Mutual
Insurers are increasingly using telematics programs as a way to reward good drivers. Most of these programs use either a device you install in your car or a smartphone app to communicate real-time driving data to your insurance company. These programs are usually optional but may result in significant savings on your premium costs if you sign up and drive safely. Both carriers have telematics programs. Below you can see a summary of Allstate Drivewise and Liberty Mutual RightTrack.
Allstate Drivewise | Liberty Mutual RightTrack | |
|---|---|---|
Telematics device | iOS or Android app | iOS or Android app (in NY, a plug-in device is used) |
Monitored driving factors | Speed, braking, time of day, starts and stops | Total miles driven, night time driving, braking, acceleration |
Potential impact on rates | Decrease | Decrease |
Potential discount | 10% or more, plus points that can be redeemed for gifts | Up to 30% |
Availability | Available in 49 states | Available in 41 states and Washington, D.C. |
Allstate vs Liberty Mutual: customer experience comparison
For many drivers, customer satisfaction may be just as important as price when it comes to choosing an auto insurance carrier. Customer experience metrics may indicate how smoothly you’ll be able to file a claim or manage your policy. Bankrate evaluated J.D. Power’s Auto Claims Satisfaction Study to help determine how satisfied customers are with the claims filing process from each carrier. For reference, the segment average in the J.D. Power study was 873/1,000.
We also evaluated Google Play and iOS ratings for each company’s mobile app. Allstate has an edge with J.D. Power rankings, but the company struggles with the Android version of its app. Customer reviews focus on technical problems with installing and using the app. Liberty Mutual’s app, meanwhile, receives high scores both from Apple and Android users.
Allstate | Liberty Mutual | |
|---|---|---|
Apple store | 4.8 / 5.0 | 4.8 / 5.0 |
Google play | 3.9 / 5.0 | 4.8 / 5.0 |
J.D. Power | 889 / 1,000 | 870 / 1,000 |
Frequently asked questions
There is no single car insurance company that is best for everyone. To find the insurer that will give you the best experience and rates, you may want to start by understanding your own unique wants and needs and then researching companies that could fit what you’re looking for. Most insurance professionals recommend gathering quotes from several insurers before making your decision, as your personal rating factors will ultimately reveal the best car insurance company for you.
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You may want to start by shopping around to determine which insurer will give you the lowest premium for the coverage you need. Researching available discounts or working with an agent may also help ensure you’re taking advantage of all the savings opportunities you’re eligible for. Choosing higher deductibles also generally results in a lower premium, but most insurance professionals recommend choosing a deductible you can comfortably pay out of pocket in case you need to file a claim for repairs.
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Yes, they do. Liberty Mutual has a Bankrate Score of 3.2 out of 5.0 for its homeowners insurance policies and is highly rated for coverage options and discounts. Allstate earned a Bankrate Score of 3.5 for its home insurance policies and tied with USAA for best home insurance company in the 2023 Bankrate Awards based on coverage options, customer service and other factors.
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