Allstate vs. Liberty Mutual Car Insurance
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UPDATED: Apr 25, 2022
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Allstate and Liberty Mutual are 2 of the largest car insurance companies in America with a combined market share of over 15% but who is the better insurance provider?
Car insurance companies of this size surely have reasons why drivers continue to sign up but its important to compare auto insurance providers on much more than the cost of premiums.
Both Allstate and Liberty Mutual offer a wide range of policy coverage, additional types of insurance and discounts.
About Allstate Insurance
Allstate controls approximately 11% of the automobile insurance market in the United States. Founded in 1931, the idea for the company was born during a game of bridge in 1930. Insurance broker Carl Odell pitched selling car insurance by direct mail to Robert Wood, the president and CEO of Sears.
Odell thought that selling insurance directly would eliminate the costs of hiring salesmen. Wood liked the idea, and so did the board of directors.
The Allstate Insurance Company was founded the following year, selling insurance by direct mail and through the Sears catalog. The company took in over $100,000 in premiums that year, and by 1933 it was showing a profit of $93,000.
Read a Full Allstate Car Insurance Review
About Liberty Mutual Insurance
Liberty Mutual was founded in 1912 as the Massachusetts Employees Insurance Association. The MEIA was founded in response to the growth of workers’ compensation laws. The company’s name was changed to Liberty Mutual in 1917. Over those five years, the focus of the company changed.
Seeking diversification but limited by law to liability insurance, the MEIA partnered with the United Mutual Fire Insurance Company, which would later become one of the founding members of the Liberty Mutual Holding Group.
In 1915 the Massachusetts state legislature passed laws enabling the company to expand to other forms of insurance like automobile insurance. Growth was rapid and by 1937 the company was operating in 48 states.
Read a Full Liberty Mutual Car Insurance Review
Allstate Auto Insurance Offerings
The Allstate Insurance Company offers a wide range of car insurance coverage including all the typical types of coverage such as liability, comprehensive, collision, GAP insurance and more.
How many car insurance companies differ is not by the type of coverage offered but the number of car insurance discounts, customer satisfaction levels, claims handling process, account management options and more.
Allstate excels in offering car insurance discounts and has even introduced Single Accident Forgiveness, which prevents rates from rising after a single accident, even if you are at fault.
In addition, Allstate will reduce the collision deductible by $100.00 the day you sign up. Every year that passes without an accident, the deductible will be reduced by an additional $100.00 up to a limit of $500.00. For every six months that elapse without an accident, you are eligible to receive a check for up to 5% of your premium.
Finally, if your car is totaled within the first three model years, Allstate will replace the car. Whether or not you qualify for all these additional benefits will depend on your profile but for most good drivers Allstate is one of the best providers around.
Liberty Mutual Product Offerings
Liberty Mutual has a number of unique features attached to their auto insurance offerings including guaranteed rates for up to twelve months after the policy is purchased. If you have both home and auto coverage, you can take advantage of a multi-policy discounts that can save up to 10% off your home insurance premiums.
Liberty Mutual also offers a lifetime guarantee for car repairs done through any of their approved facilities.
Rental vehicles are guaranteed if rental coverage is purchased with the regular policy. Premiums will not be raised after an accident if there are no accidents in the previous five years, and no driving violations in the previous three years.
Vehicles which suffer total loss also are guaranteed coverage for a vehicle one model year newer.
Liberty Mutual Auto Insurance Benefits vary by state and all drivers may not qualify for them but overall the company has many advantages over smaller car insurance companies.
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Allstate vs. Liberty Mutual Industry Ratings
According to the 2010 National Auto Insurance Study published by J.D. Powers & Associates, the customer rankings for Allstate and Liberty Mutual using a scale of 1 to 5 (with 5 being the highest) are as follows:
- Overall Satisfaction: Allstate 3/5 – Liberty Mutual 3/5
- Contacting the Insurer: Allstate 3/5 – Liberty Mutual 3/5
- Policy Offerings: Allstate 3/5 – Liberty Mutual 3/5
- Billing and Payment: Allstate 3/5 – Liberty Mutual 3/5
- Pricing: Allstate 2/5 – Liberty Mutual 4/5
Allstate or Liberty Mutual
Which one of these car insurance companies is best? The final decision will be up to you because only you know your unique circumstances and needs. Both companies are highly reputable, have a long history of servicing customers and are financially strong.
Its also important to note that these are not the only 2 car insurance companies of comparable size and reputation.
Companies like Geico, State Farm and Nationwide offer very comparable coverage so always compare at least 5 or 6 car insurance companies before selecting a provider.