By BundleInsuranceGuide Editorial Team | Updated September 13, 2026
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Get Free Quotes NowLiberty Mutual vs. State Farm: Which Home and Auto Bundle Is Better?
Liberty Mutual and State Farm are both major national insurers, but they compare quite differently once you look past the headline AM Best letter grade, Liberty Mutual’s claims-satisfaction ranking is notably strong, while State Farm currently reports the larger average bundle discount.
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Liberty Mutual vs. State Farm: Quick Comparison
| Category | Liberty Mutual | State Farm |
|---|---|---|
| AM Best rating | A (Excellent) | A+ (Superior), stable, downgraded from A++ in Nov. 2025 |
| S&P / Moody’s (insurer financial strength) | A+ / A2 | Not independently verified |
| J.D. Power Auto Claims Satisfaction 2025 | 730/1,000, 3rd of 20 | Not among top 3 |
| Reported avg. bundle discount | Varies by state, no single published average | ~20.2% (MoneyGeek) |
Financial Strength: Which Insurer Is More Stable?
AM Best rates Liberty Mutual at A (Excellent). One important clarification: Liberty Mutual’s insurer financial-strength ratings from S&P (A+) and Moody’s (A2) apply to the operating insurance entities, these are stronger, investment-grade marks and shouldn’t be confused with the separate corporate debt ratings sometimes cited for Liberty Mutual’s parent holding company, which are lower and measure a different thing. State Farm holds a higher AM Best grade at A+ (Superior), though it was downgraded from A++ in November 2025 after sustained underwriting losses.
Customer Satisfaction: What J.D. Power Says
Liberty Mutual performs strongly here: it ranked 3rd of 20 in J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study with a 730/1,000 score, just behind Erie (743, #1) and NJM (731, #2). State Farm was not named among that study’s top three carriers.
Bundle Discount: Which Saves You More?
Neither carrier publishes a single official national bundle-discount percentage that we could independently verify for this comparison, Liberty Mutual’s own materials point buyers to an itemized quote rather than a fixed percentage, since the credit depends on state, product, and underwriting company. State Farm’s average bundle discount is reported at around 20.2% by MoneyGeek, which is a documented estimate worth comparing against your own Liberty Mutual quote rather than assuming State Farm automatically wins on savings.
| Provider | Bundle Options | Highlights | Best For | Action |
|---|---|---|---|---|
| State Farm | Home + Auto | Strong bundling discount | Families | View Quote |
| Allstate | Home + Auto + Renters | Flexible policy options | Multi-policy shoppers | See Rates |
| Progressive | Auto + Condo | Fast online quote flow | Digital-first buyers | Compare Now |
Other Differences Worth Knowing
Liberty Mutual’s claims-satisfaction ranking (3rd of 20 nationally) is one of the stronger data points among all the carriers compared on this site, ahead of both Nationwide (4th) and well ahead of State Farm, Travelers, and Allstate, none of which cracked the top three. If how a company handles your claim matters most, that ranking is worth real weight.
Which Bundle Is Better For You?
If claims-handling reputation is your top priority, Liberty Mutual’s top-3 J.D. Power ranking is a genuinely strong signal. If a documented, larger average discount matters more and you’re comfortable with State Farm’s recent rating trend, its ~20.2% reported bundle savings gives it an edge on paper, but because Liberty Mutual doesn’t publish one fixed discount number, get an itemized quote from both before assuming either one saves you more.
Frequently Asked Questions
Is Liberty Mutual’s S&P/Moody’s rating the same as its parent company’s rating?
No, the insurer financial-strength ratings (S&P A+, Moody’s A2) apply to Liberty Mutual’s operating insurance companies, which is what actually backs your policy. These are distinct from, and stronger than, the corporate debt ratings sometimes cited for Liberty Mutual’s holding company.
Does Liberty Mutual publish a fixed bundle discount percentage?
Not a single official nationwide figure, Liberty Mutual’s own materials direct shoppers to an itemized quote, since the discount depends on state, product line, and the specific underwriting company involved.
How does Liberty Mutual rank on claims satisfaction compared to State Farm?
Liberty Mutual ranked 3rd of 20 carriers in J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study (730/1,000); State Farm did not rank among that study’s top three.
Key Takeaways
- Liberty Mutual ranked 3rd of 20 in J.D. Power’s 2025 Auto Claims Satisfaction Study, one of the strongest claims-satisfaction scores of any carrier compared on this site.
- State Farm holds a higher AM Best grade (A+) than Liberty Mutual (A), though State Farm’s grade was recently downgraded from A++.
- Liberty Mutual’s insurer-level S&P (A+) and Moody’s (A2) ratings are distinct from, and stronger than, its parent holding company’s separate corporate debt ratings, don’t conflate the two.
- State Farm reports a documented average bundle discount (~20.2%); Liberty Mutual does not publish one fixed national percentage.
- Get an itemized quote from Liberty Mutual directly, since its discount depends on your state and the specific underwriting company involved.
Insurance Disclaimer
Disclaimer: The content on this page is for informational purposes only and does not constitute insurance, legal, or financial advice. Insurance rates, discounts, and availability vary by state, provider, coverage level, and individual risk factors. Savings figures are general industry estimates and are not guaranteed for any individual. Always consult directly with licensed insurance professionals and obtain multiple quotes before making coverage decisions. BundleInsuranceGuide.com may earn a commission from affiliate links on this page at no additional cost to you.