Allstate and Liberty Mutual are two of the top 10 car insurance companies in the country. Both offer similar insurance products, but if you’re trying to decide between them, it helps to look at the unique discounts and coverage types each company offers.
If you’re a teacher or in the military, Liberty Mutual is the better option for your car insurance because it offers special discounts for those professions that you won’t find with Allstate.
On the other hand, Allstate is the better choice for Uber and Lyft drivers because it offers special ride-share insurance that can protect you if there’s a gap between your personal car insurance policy and the one provided by the ride-share company.
If you don’t drive your car often, Allstate may also be the best car insurance for you because it offers Milewise, a pay-per-mile insurance coverage that Liberty Mutual doesn’t have.
Allstate vs. Liberty Mutual auto insurance
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The choice between Allstate and Liberty Mutual auto insurance is a tricky one because they offer comparable full-coverage options and discounts. Neither company comes out ahead of the other in customer service or claims satisfaction. That said, Allstate delivers more bang for your buck. Its basic coverage is less expensive and provides more protection than Liberty Mutual.
Allstate auto insurance
You’re in good hands with Allstate, or at least that’s what the insurance company’s popular marketing slogan tells you. Allstate Insurance has been around since the Great Depression. The company started as an offshoot of Sears, Roebuck and Co., a mail-order catalog company. Like Sears, Allstate first began offering auto insurance through direct mail and the Sears catalog.
Today, Allstate has over 16 million customers in all 50 states in the U.S. The insurer offers comprehensive and collision coverage, as well as policies for various other purposes, such as:
- Homeowners insurance
- Life insurance
- Identity protection
Allstate has a full range of coverage options, such as liability, collision, comprehensive, roadside assistance, and rental car reimbursement. The company also offers MileWise, a pay-per-mile insurance program, which can be a good choice if you don’t drive very often.
Note about pay-per-mile insurancePay-per-mile insurance
is a little more complex than it sounds. You’ll have to pay a base rate and use a mobile app that tracks your mileage.
With Allstate’s Drivewise program, you can earn Allstate Rewards points for safe driving habits that you can then redeem for savings on merchandise, travel, gift cards, and more.
Read our full Allstate auto insurance review
Liberty Mutual auto insurance
Liberty Mutual Insurance is considered the sixth-largest auto insurance company in terms of market share. The Boston-based company was founded in 1912 and today has over 45,000 employees operating in 29 countries across the globe.
Liberty Mutual claims that its policyholders pay only for what they need. When it comes to car insurance, liability and medical payments coverage come standard on all Liberty Mutual policies. The insurer also offers a number of additional coverage options, including collision, comprehensive, roadside assistance, and uninsured motorist.
Liberty Mutual also offers some types of car insurance coverage that aren’t commonly found with other insurance companies. With the company’s better car replacement add-on coverage, if your car is totaled, you’ll get a replacement vehicle that is one model year newer with 15,000 fewer miles than your original car.
You can also get additional original parts replacement coverage from Liberty Mutual, which guarantees that any damaged parts on your car are replaced with parts from the original manufacturer (rather than aftermarket parts).
Read our full Liberty Mutual auto insurance review
Allstate vs. Liberty Mutual: insurance rates
Generally speaking, Allstate offers lower rates than Liberty Mutual. It also offers more coverage for less cost than Liberty Mutual.
During our test insurance quote process, both insurance companies provided quotes on three different levels of coverage. For comparison, we looked at the most basic, least-expensive option for both insurance providers.
Allstate’s basic coverage:
- Insurance cost: $54 per month
- Bodily injury liability: $25,000/$50,000
- Property damage liability: $10,000
- Uninsured motorist: $25,000/$50,000
- Underinsured motorist: $50,000/$100,000
- Death indemnity: $10,000
- Collision: $1,000 deductible
- Comprehensive: $1,000 deductible
Liberty Mutual’s basic coverage:
- Insurance cost: $68 per month
- Bodily injury liability: $25,000/$50,000
- Property damage liability: $10,000
- Uninsured motorist: $25,000/$50,000
- Collision: $2,500 deductible
- Comprehensive: $2,500 deductible
- Liberty Mutual Deductible Fund (reduces collision deductible by $100 each year)
Allstate vs. Liberty Mutual: discounts
Both Allstate and Liberty Mutual offer a number of discounts that can save you some money on your car insurance. The discounts both insurers have in common include:
- Multiple policies
- Good students
- Safe drivers
- Automatic payments
Both of these companies also offer programs in which drivers can earn discounts by having their driving habits tracked via a mobile phone app or a device installed in their car. Drivers can earn a discount just for signing up for Liberty Mutual’s RightTrack or Allstate’s Drivewise programs.
Both Allstate and Liberty Mutual also offer accident forgiveness. Accident forgiveness is an add-on coverage option where you get a guarantee that the company won’t raise your auto insurance rates after your first accident.
Note about accident forgivenessAccident forgiveness isn’t available for all policyholders. Only those with clean driving records (meaning no traffic violations, accidents, or claims) qualify for coverage. With Liberty Mutual, drivers must have five years of clean driving to be eligible, while Allstate insurance only requires a clean record for three years.
Where Allstate and Liberty Insurance differ.
Liberty Mutual is unique in that it offers special discounted rates on car insurance for teachers. This coverage can include zero deductibles in certain circumstances, such as if your car gets vandalized while on school property, or if you get in a collision while driving on school business.
Teachers are also covered up to $2,500 if teaching materials or school property is stolen from, or damaged in, their car.
Liberty Mutual also has some military discounts for drivers who are active, retired or reserved in the U.S. Armed Forces.
Allstate auto insurance has some unique coverage options of its own. It offers ride-share insurance for drivers who work for companies like Uber or Lyft.
Allstate Ride for Hire is additional protection for ride-share drivers that covers the gap between their personal auto insurance and what the ride-share company’s insurance covers. These gaps typically occur when the driver is waiting for a passenger assignment.
Allstate vs. Liberty Mutual: claim experience
Both Allstate and Liberty Mutual rank under the industry average for customer experience according to J.D Power. In the 2021 U.S. Auto Claims Satisfaction Study, the industry average rank was 880 on a 1,000-point scale.
- Liberty Mutual’s ranking: 876
- Allstate’s ranking: 870
Despite its ranking, Liberty Mutual’s claims process is easy. You can file claims online in less than 10 minutes. You can also track the status and manage claims online or through the Liberty Mutual mobile phone app.
Allstate policyholders can also file claims via the website or mobile phone app. The app has a QuickFoto Claim feature that you can use to get paid quicker, but keep in mind that not all claims are eligible.
If you’d rather not file your claim online or through the app, then you can file a claim over the phone or with a local agent instead.
Allstate vs. Liberty Mutual: credit score requirements
Like it or not, your credit score can have an impact on what insurance companies charge you for car insurance. Drivers with bad credit are seen as higher risks and usually have to pay more for car insurance than drivers with good credit scores.
Unless you live in California, Hawaii, or Massachusetts, where insurance companies can’t use credit scores to determine insurance rates, most insurers will look at your credit score to figure out your premiums.
Both Allstate and Liberty Mutual consider credit scores when quoting your car insurance premiums. However, credit scores are only one of the factors used to determine your car insurance rates. Insurers also look at your age, where you live, the car you drive, and your driving record when setting your rates.
Which company should you choose?
When you should choose Allstate car insurance
Allstate car insurance is a good option if you:
- Are a ride-share driver with a company like Uber or Lyft
- Want personal in-person service from an insurance agent
- Haven’t had any traffic violations, accidents, or claims in the past three years, and you qualify for accident forgiveness
- Don’t drive often and need pay-per-mile coverage like Milewise
- Have a vehicle with features like anti-lock brakes and an anti-theft device that can get you a discount
- Like to pay your premium in full
- Drive a classic car you need insured
- Want extended vehicle care on your car
- Want to earn rewards for merchandise, travel, gift cards and more for good driving habits
- Have a homeowners or renters policy to bundle with your car insurance
When you should choose Liberty Mutual car insurance
Liberty Mutual car insurance is a good option if you:
- Are a teacher
- Are in the military
- Own a home
- Want to select your own optional coverages
- Need gap coverage
- Prefer damaged parts are replaced with parts from the original manufacturer
- Have an older car that you want better car replacement coverage on
- Want the protection of a lifetime repair guarantee
- Are insuring a student who lives away from home for school
- Haven’t had a traffic violation, accident, or claim in five years
- Prefer to handle many things online or through a mobile app
What factors to consider before choosing
Consider what unique coverage and insurance discounts Allstate and Liberty Mutual each offer and which would benefit you the most. You should also consider the level of coverage you’ll get for the premium price.
Allstate would be the best car insurance for people who prefer to deal with an insurance agent in person rather than online. It’s also a good option if you have a side gig or work full time for ride-share companies like Uber and Lyft.
On the other hand, Liberty Mutual is the best bet if you’re an active or retired member of the military, or if you’re a teacher. This company offers special discounts for people in those fields. Liberty Mutual may also be a good choice for computer-savvy drivers who like to handle things online or via a mobile app.
Note that coverage variesRemember that car insurance coverage options and available discounts can vary state-to-state. To find out what’s available in your state, contact your insurance agent or your insurer's customer service department.
Is Liberty Mutual the same as Allstate?
No, Liberty Mutual isn’t the same as Allstate. They are two separate car insurance companies. However, the two companies’ offerings and customer satisfaction ratings are on par with each other.
Who is the #1 auto insurer in the United States?
State Farm is ranked as the #1 auto insurer in the U.S. with 16% of the market share, according to the National Association of Insurance Commissioners (NAIC). Allstate is the 4th largest auto insurer with 10.4% market share, and Liberty Mutual is ranked 6th with 5.1% market share.
Is Liberty Mutual good at paying claims?
It depends. According to the J.D. Power 2021 U.S. Auto Claims Satisfaction Study, Liberty Mutual falls below the industry average for claim satisfaction. NAIC data shows that Liberty Mutual also has more customer complaints than the industry average.
Allstate vs. Liberty Mutual: bottom line
Allstate and Liberty Mutual auto insurance have a lot in common when it comes to available coverage, discounts offered, and customer satisfaction. Allstate appears to offer the best rate for more coverage than Liberty Mutual. However, depending on what you do for a living, the special discounts provided by Liberty Mutual may get you the more affordable auto insurance quote.
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