The Complex Relationship Between Farmers Insurance And Liberty Mutual: Understanding The Affiliate Mystery

Farmers Insurance and Liberty Mutual are two of the biggest car insurance companies in the United States. Both insurers offer a broad range of coverage options and money-saving discounts suitable for all types of drivers. However, Farmers Insurance and Liberty Mutual are not the same company and are two independent insurance companies that sell a variety of insurance products, including auto insurance and home insurance.

Customer satisfaction

Farmers Insurance and Liberty Mutual are two of the biggest car insurance companies in the United States by market share. Both insurers have an impressive coverage selection, but Farmers has higher customer satisfaction from policyholders. Liberty Mutual has lower average rates, making it the more affordable option for some drivers.

Farmers Insurance Customer Satisfaction

Farmers Insurance has mixed online reviews from customers and about four times as many complaints as expected in the National Association of Insurance Commissioners Customer Complaint Index. However, Farmers Insurance has an A rating from A.M. Best for financial stability and is the seventh-largest insurer in the U.S. with more than 30 different types of insurance, including auto, home, renters, flood, earthquake, life, and business insurance.

Liberty Mutual Customer Satisfaction

Liberty Mutual has lower-than-average ratings for customer satisfaction and claims satisfaction based on a 1,000-point scale from J.D. Power. It has a high number of customer complaints, but it has an A rating for financial strength from A.M. Best and an A+ rating from the Better Business Bureau. Liberty Mutual is the sixth-largest U.S. car insurance company, capturing a 4.95% total market share. The company offers more than a dozen available discounts and low average rates.

Cost of insurance

The cost of insurance is a critical factor when choosing an insurance provider. The average cost of car insurance in the United States is $1,483 per year, or $124 per month. However, the cost varies depending on factors such as location, provider, and coverage level. Liberty Mutual's average annual premium is $1,090, which is higher than the national average of $671. On the other hand, Farmers Insurance offers a full-coverage car insurance policy for $3,169 annually, while a minimum-liability coverage policy costs around $1,153 per year.

When it comes to home insurance, Liberty Mutual offers a wide range of coverage options and discounts. The average cost of homeowners insurance in the United States for $300,000 in dwelling coverage is $2,153. Liberty Mutual's average home insurance rates are not available, but they offer a variety of discounts to help make their policies more affordable. Farmers Insurance also offers homeowners insurance, with an average annual rate of $1,455.

Both Liberty Mutual and Farmers Insurance provide prospective customers with online tools to obtain quotes for their insurance products. It is important to remember that insurance rates are highly individualized and depend on various factors, so it is always a good idea to compare quotes from multiple providers before making a decision.

Types of insurance

There are several types of insurance policies available to protect you from financial fallout in the event of an unexpected disaster. Here are some of the most common types of insurance:

Auto Insurance

Driving without auto insurance is against the law in almost every state. Auto insurance prevents you from bearing the financial burden of an expensive accident. There are several types of auto insurance, including:

• Liability coverage: Pays for property damage and injuries you cause to others if you’re at fault for an accident.
• Uninsured/underinsured motorist (UM) coverage: Pays for medical expenses, lost wages, and pain and suffering if you are struck by an uninsured or underinsured driver.
• Personal injury protection (PIP): Covers injuries to you and your passengers, regardless of who was responsible for an accident.
• Medical payment coverage: Helps pay for medical expenses for you and your passengers if you’re injured in an accident, regardless of fault.
• Comprehensive and collision coverage: Collision insurance pays to repair or replace your car after an accident, while comprehensive insurance covers theft, fire, vandalism, falling objects, and animal strikes.

Home Insurance

Home insurance provides financial protection for your home and personal property in the event of a covered loss, such as a fire, theft, or vandalism. It typically includes:

• Dwelling coverage: Protects the structure of your home and attached structures like a garage or deck.
• Personal property coverage: Protects your personal belongings, such as furniture, appliances, and clothing.
• Other structures coverage: Covers structures on your property like a fence or shed.
• Liability coverage: Pays for injuries or property damage you accidentally cause to others.
• Additional living expenses coverage: Pays for extra costs such as meals and lodging if you are temporarily displaced from your home due to a covered loss.

Renters Insurance

Renters insurance provides similar coverage to home insurance but is specifically for individuals who rent their homes. It can help replace your belongings and provide liability coverage if someone is injured in your apartment.

Life Insurance

Life insurance provides financial protection for your beneficiaries in the event of your death. There are two main types of life insurance: term life insurance, which lets you lock in rates for a specific period, and permanent life insurance, which provides lifelong coverage and includes a cash value component.

Health Insurance

Health insurance provides financial protection to help pay for medical expenses. You can typically obtain health insurance through your employer, the federal health insurance marketplace, or private insurance companies.

Disability Insurance

Disability insurance provides financial protection if you become disabled and are unable to work. It typically replaces a portion of your base income and can be obtained through your employer or purchased individually.

Long-Term Care Insurance

Long-term care insurance can help pay for expenses such as in-home care, adult day care, or nursing home stays. It is typically purchased by adults in their 50s or 60s as the cost increases with age.

Discounts offered

Farmers Insurance and Liberty Mutual are two of the biggest car insurance companies in the United States. Both companies offer a range of discounts to their customers. Here are some of the discounts offered by each company:

Farmers Insurance Discounts:

• Multi-policy discount: Farmers offers a discount if you bundle your home and auto insurance policies together.
• Multi-car discount: Insuring more than one car with Farmers can result in a discount on each vehicle.
• Good student discount: Students who maintain a certain grade point average (usually a B or 3.0 GPA) and are enrolled full-time can receive a discount.
• Safe driver discount: Farmers offers a discount for drivers with a clean driving record, free from accidents, and traffic violations.
• Affinity discount: This discount is available for members of partner organizations or employees of partner companies.
• EPolicy discount: Farmers provides a discount if you choose to receive all your bills and statements online.
• Anti-lock brakes discount: A discount is offered for vehicles with factory-installed anti-lock brakes.
• Anti-theft discount: If your car has an anti-theft device like LoJack, you may be eligible for a discount.
• Daytime running lights discount: This discount applies to vehicles with headlights that stay on at all times.
• Homeowner discount: Homeowners may receive a discount compared to those who rent their residence.

Liberty Mutual Discounts:

• Safe driver discounts: Liberty Mutual offers various discounts for safe drivers, including an accident-free discount, a violation-free discount, and the RightTrack program, which can save customers up to 30%.
• Vehicle safety feature discounts: Discounts are available for vehicles with anti-theft devices, advanced safety features like anti-lock brakes, and alternative energy (hybrid or electric) vehicles.
• Customer detail discounts: Liberty Mutual offers discounts for homeowners, military personnel, good students, and students away at school.
• Customer loyalty discounts: You can save by bundling policies (auto with homeowners, renters, or life insurance) and by insuring multiple vehicles.
• Payment and policy discounts: Discounts are available for paying your premium in full, enrolling in automatic payments, purchasing your policy online, and choosing a paperless policy.

Both Farmers Insurance and Liberty Mutual provide a range of discounts to their customers, allowing them to save on their insurance premiums. The availability and eligibility for these discounts may vary by state and individual circumstances.

Company ratings

Farmers Insurance Company Ratings

Farmers Insurance is one of the oldest auto insurance companies in the U.S., having opened in 1928. It is the seventh-largest auto insurer in the country and offers standard coverage choices plus a solid list of extras and discounts. It has more than 48,000 independent insurance agents across the country and is available in all 50 states.

Farmers Insurance has received mixed ratings from customers and industry experts. WalletHub editors gave Farmers a rating of 3.0 out of 5, while users on the platform rated it 3.3 out of 5. Farmers received an A rating from the Better Business Bureau (BBB) and an A- rating from AM Best.

Farmers Insurance has fewer complaints than expected for a company of its size, according to the National Association of Insurance Commissioners (NAIC). It was rated above average in customer satisfaction for both auto insurance shopping and claims by J.D. Power. However, Farmers Insurance was rated below average in the J.D. Power 2022 U.S. Auto Insurance Study.

NerdWallet gave Farmers Insurance 4.5 stars out of 5 for overall performance. In a survey conducted by NerdWallet, Farmers received an overall satisfaction score of 72 out of 100, with the average score among 11 insurers being 78.

U.S. News & World Report ranked Farmers Insurance as the eighth-best car insurance company. It was also rated the ninth-cheapest car insurance company.

Liberty Mutual Company Ratings

Liberty Mutual is the sixth-largest property and casualty insurer in the U.S. and has been in business since 1912. It offers auto insurance, life insurance, umbrella insurance, and other types of coverage to people in all 50 states and Washington, D.C.

Liberty Mutual has received mixed ratings from customers and industry experts. WalletHub editors gave Liberty Mutual a rating of 3.2 out of 5, while users on the platform rated it 2.4 out of 5. Liberty Mutual received an A rating from the Better Business Bureau (BBB) and an A rating from AM Best.

Liberty Mutual has received more complaints than expected for a company of its size, according to the National Association of Insurance Commissioners (NAIC). It was rated above average in customer satisfaction for auto insurance shopping and claims by J.D. Power. However, Liberty Mutual was rated below average in the J.D. Power 2022 U.S. Auto Insurance Study.

MoneyGeek gave Liberty Mutual a score of 67 out of 100. Liberty Mutual was rated above average in the J.D. Power 2023 U.S. Insurance Digital Experience Study.

Bankrate gave Liberty Mutual a score of 3.8 out of 5. Liberty Mutual was rated below average in the J.D. Power 2023 U.S. Auto Insurance Study and Auto Claims Satisfaction Study.

Frequently asked questions