USAA and Liberty Mutual are easily recognized for their car insurance commercials. However, choosing a provider requires more research than basing a decision on television advertisements. Continue reading to compare these insurers’ coverage, price, discounts, and more.
For more information on the individual companies, check out our USAA Car Insurance Review and Liberty Mutual car insurance review.
USAA and Liberty Mutual offer standard car insurance coverage such as:
Read our article on common types of auto insurance for more information about basic coverage.
Additional features and products from USAA and Liberty Mutual may be available as add-ons to basic coverage. Some types of insurance coverage might not be available in every state.
Insurance companies determine their rates using formulas with many variables. In addition to driving history, the driver’s age, gender, marital status, annual miles traveled, geographic location, vehicle type, and credit history are among the factors that influence the overall insurance cost.
Some praise USAA as a top-quality auto insurance option with inexpensive rates. According to research from The Zebra, the average USAA policy costs less than Liberty Mutual. See the below table to compare average annual premiums between USAA and Liberty Mutual by age tier.
| Age Group | USAA | Liberty Mutual |
| Teens | $2,864 | $6,559 |
| 20s | $1,261 | $2,686 |
| 30s | $963 | $2,686 |
| 40s | $957 | $1,926 |
| 50s | $889 | $1,793 |
| 60s | $845 | $1,746 |
Source: The Zebra
Insurers typically encourage customers to take advantage of bundling auto insurance with home, renters, boat, motorcycle, or another insurance policy. Combining policies has the potential to generate significant savings, so be sure to ask about multi-policy and multi-vehicle bundling options with USAA and Liberty Mutual.
Policyholders may be eligible for some of the many discounts and perks offered by the companies:
Both companies have telematics programs, which monitor driving habits to determine the premium. Other savings, such as Liberty Mutual’s discount for alternative-fuel vehicles, may be available to eligible customers.
USAA offers an uncommon benefit available to its policyholders. As an insurer geared toward service members, the benefit provides savings of up to 60% for storing a vehicle securely for 30 days. If the storage location is on a military base, drivers can get a 15% discount.
One unique feature of Liberty Mutual is the length of its car insurance policies. Unlike most leading carriers, Liberty Mutual offers policies in 12-month terms. Liberty’s longer-length policy option may help you avoid rate increases that often come at the end of typical 6-month policies.
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The cost of coverage should not be your only consideration when shopping for a car insurance policy. Some drivers argue that you get what you pay for and that higher prices lead to better service. Regardless of how much you pay for insurance, your carrier should provide good customer service, quickly respond when you need help, and pay submitted claims.
The J.D. Power 2021 U.S. Auto Insurance Study provides key insights from the responses of nearly 39,000 car insurance customers. The survey measures criteria regarding customer satisfaction:
Liberty Mutual achieves “above average” ratings in the study in terms of overall customer service.
USAA was not officially included in these J.D. Power rankings because the insurer didn’t meet the study’s criteria. USAA offers its policies only to veterans and members of the U.S. armed forces and their family members. Still, the company receives many positive reviews, and its customer service is highly regarded.
USAA is among the top-rated companies by Investopedia in many of its reviews, including Best Car Insurance, Best Car Insurance for Teens, and Best Military Car Insurance.
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A.M. Best assesses insurance companies’ ability to meet their ongoing policy and contractual obligations. According to The Zebra, USAA shows “excellent” financial strength, and Liberty Mutual’s rating is “good.”
While the ratings are different, both carriers have the financial strength to cover their customers’ claims.
When deciding whether USAA or Liberty Mutual is the right choice for your auto insurance, there are many factors to consider.
USAA receives widespread praise from customers. However, membership restrictions can prevent you from signing a policy with them and enjoying the company’s affordable rates. Liberty Mutual offers many discounts that can lower the cost of its policies, and its 12-month terms benefit many policyholders.
Do your research before deciding on a new auto insurance provider. Choose the company and the coverage levels that best meet your needs. It’s best to request quotes from several carriers. Above all, be sure you understand what gets covered before signing a new insurance policy, especially before buying a new or used car.
