Liberty National Vs Usaa: Which Insurance Is Better?

Liberty National Life Insurance and USAA are two of the most popular insurance companies in the United States. While both companies offer similar insurance products, there are some key differences between them. USAA is exclusive to military personnel and their families, whereas Liberty Mutual offers coverage to all drivers. USAA has higher customer satisfaction ratings and lower rates, but Liberty Mutual provides more add-on coverage options and discounts.

Customer satisfaction

Liberty Mutual and USAA are two of the largest car insurance companies in the US, and both offer a range of insurance products beyond car insurance. Liberty Mutual has a global presence, while USAA is unique in that it caters exclusively to military personnel and their families.

USAA has a strong reputation for customer satisfaction, receiving stellar ratings from customers and third-party rating agencies alike. It was rated as the top car insurance company for 2019, as well as the best homeowners and renters insurance company for the same year. USAA also topped The Zebra's Customer Satisfaction Survey, scoring highly with both male and female respondents, and across all age groups.

Liberty Mutual, on the other hand, has a higher number of customer complaints than many competitors. It came in near the bottom of The Zebra's survey of fifteen carriers, although it did score well in Online Satisfaction. Older drivers rated the company higher.

USAA also has a higher customer satisfaction ranking than Liberty Mutual in the J.D. Power 2023 U.S. Auto Insurance Study. Liberty Mutual's customer satisfaction ranking in this study was below average.

Reviews for both companies on sites like Trustpilot and Sitejabber are mixed. USAA has received praise for its low premiums, while Liberty Mutual has been criticised for its high rates.

USAA has consistently high customer satisfaction ratings, especially from military members and their families. Liberty Mutual, while offering its products to a wider range of customers, has received more complaints and has lower customer satisfaction scores.

Discounts

Liberty Mutual and USAA both offer a range of discounts to their customers. However, it is worth noting that the availability of these discounts may vary by state and other factors.

Liberty Mutual Discounts

Liberty Mutual offers a wide range of discount options, including:

• Multi-policy discount
• RightTrack: a usage-based program that monitors driving habits and offers savings of up to 30% for safe drivers
• Deductible Fund: allows customers to put money aside over time to lower their deductible in the event of an at-fault accident
• Accident forgiveness: if you're accident-free for five years, your first accident won't result in increased rates
• Military discount
• Good student
• Student-away-at-school
• Claims-free
• Violation-free
• Multi-car
• Alternative fuel discount
• Anti-theft device discount
• Driver training course discount
• Early shopper discount
• Premier driver discount
• Online purchase discount
• Paperless policy discount
• Pay-in-full discount
• Preferred payment discount

USAA Discounts

USAA also offers several discounts, but not as many as Liberty Mutual. These include:

• Accident forgiveness: if you go five years without an accident, your premium won't increase after one at-fault accident
• SafePilot: a telematics program that offers a 10% discount for enrolling and up to 30% savings for safe driving
• Bundling
• Insuring multiple vehicles
• Living on a military base
• Automatic payments
• Defensive driving course
• Anti-lock brake system
• Student away at school
• Affinity membership alum
• Newer/more durable roof
• Protective devices (smoke/burglar alarms, etc.)

Comparison

While Liberty Mutual offers a wider array of discount opportunities, it's important to note that even with discounts, another company may offer a cheaper quote. It's always a good idea to compare quotes and shop around to find the best rate for your specific needs.

Eligibility

USAA expanded its eligibility requirements in 2009 to include military retirees, as well as the spouses and children of members. In 1961, USAA also changed its bylaws so that officers no longer lose their membership after resigning from service.

Liberty Mutual, on the other hand, offers coverage to all drivers and has nationwide brand recognition. It is the fourth-largest property and casualty insurer in the US and ranks 68th on the Fortune 100 list of the largest US corporations.

Financial strength

USAA has a strong financial strength rating of A++ (Superior) from AM Best, indicating that it has a superior ability to pay out claims. This is reflected in its high ranking as one of the top-rated insurers in the U.S.

Liberty Mutual, on the other hand, has a slightly lower financial strength rating of A (Excellent) from AM Best. Despite this, it is still considered to have a good ability to pay out future claims and has an A+ rating from the Better Business Bureau.

USAA has consistently ranked as one of the top-rated insurers in the U.S. due to its strong financial stability and low number of customer complaints. It has received high ratings from third-party organizations like The Zebra, which gave it a 5 out of 5 rating, and J.D. Power, which ranked it high in customer satisfaction.

Liberty Mutual, while having a strong financial outlook, receives a higher number of customer complaints than its competitors. It has a below-average customer satisfaction ranking from J.D. Power and ranked near the bottom in The Zebra's Customer Satisfaction Survey, although it did score well in Online Satisfaction.

In terms of market share, USAA is the fifth-largest car insurance company in the country, while Liberty Mutual is the sixth-largest, with 4.95% of the market share. USAA has a global presence, with its first office outside of Texas opening in Frankfurt, Germany, in 1952, and now has operations in over 900 locations worldwide. Liberty Mutual is also a global insurer, ranking as the fourth-largest property and casualty insurer in the U.S. and 68th on the Fortune 100 list of largest U.S. corporations, with assets of over $100 billion.

Both companies offer a range of insurance products beyond just auto insurance, including homeowners, life, and business insurance, and have similar coverage options that will satisfy the needs of most customers. However, USAA has more restricted eligibility criteria, being available only to members of the armed forces and certain family members. Liberty Mutual, on the other hand, offers coverage to all drivers.

Cost

USAA is known for its affordable rates, with an average monthly cost of $106 for car insurance, compared to Liberty Mutual's average of $144 per month. USAA also offers cheaper premiums for prospective drivers at every credit level. For example, if you have very bad credit, USAA is likely to be a more cost-effective option.

When it comes to life insurance, USAA offers a 20-year, $500,000 term life insurance policy with monthly rates ranging from $27 to $47 for a nonsmoking man in excellent health, and $32 to $57 for a nonsmoking woman in excellent health. These rates are just samples, and the final quote will depend on factors like age, health, lifestyle, occupation, and driving record.

Liberty Mutual, on the other hand, has an average monthly cost of $118 for homeowners insurance, compared to USAA's average of $127 per month. Liberty Mutual also offers a wide range of discount options, such as bundling, good student, military, and multi-car discounts, which can help reduce the overall cost of insurance.

It's worth noting that insurance rates are highly personalized and depend on various factors, including your location, driving history, age, gender, marital status, credit score, and more. Therefore, it's always a good idea to compare quotes from multiple insurers and consider your specific needs before making a decision.

Frequently asked questions