Liberty Mutual vs State Farm: which is cheaper in 2026?
By the BudgetAutoRates editorial team · How we source rates Updated July 2026 Illustrative estimates, not quotes
Scout's Pick: State Farm
For pure price, State Farm wins in 47 of 50 states, averaging $46/mo less on comparable full coverage. Pick Liberty Mutual if you want to build the policy piece by piece: 12 optional add-ons to State Farm's 7, including better car replacement and a deductible fund.
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Head to head
| Category | Liberty Mutual | State Farm | Edge |
|---|---|---|---|
| Avg liability / mo | $74 | $42 | State Farm |
| Avg full coverage / mo | $172 | $126 | State Farm |
| Teen driver added cost | +$189/mo | +$139/mo | State Farm |
| Rate after one at-fault accident | +49% | +23% | State Farm |
| Optional add-ons | 12 | 7 | Liberty Mutual |
| Accident forgiveness | Buy from day 1 | Earned over time | Liberty Mutual |
| Claims satisfaction (J.D. Power) | 866 | 882 | State Farm |
| Mobile app rating | 4.8 | 4.7 | Liberty Mutual |
Illustrative estimates from public benchmarks and a cost model, not quotes; see our methodology.
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Pick Liberty Mutual if · Pick State Farm if
Liberty Mutual fits you when
- You want to assemble coverage a la carte from 12 add-ons
- Better car replacement matters for a car under 2 years old
- You want accident forgiveness you can buy on day 1
State Farm fits you when
- Price sets the decision: $46/mo less in our estimates
- You want one of 19,000+ local agents on your side
- You're insuring a teen driver: +$139/mo vs +$189/mo
The cheaper of two isn't the cheapest of all. Scout digs through 100+ carriers, not two.
See My Real RatesCommon questions
Why is State Farm usually cheaper than Liberty Mutual?
Two different pricing models. State Farm prices a lean baseline and spreads costs across the largest auto book in the country; Liberty Mutual builds its pricing around customization, and the flexibility tends to show up in the base rate. In our estimates the gap averages $46/mo on comparable full coverage.
Are Liberty Mutual's add-ons worth the higher base rate?
Sometimes. Better car replacement can pay for itself on a newer car. Scout's rule: price the add-on against what it would actually pay out, not against the brochure.