Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Benjamin Carr was a licensed insurance agent in Georgia and has experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. Benji is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Feb 2, 2021

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Advertiser Disclosure: We strive to help veterans make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with one auto insurance company and cannot guarantee quotes from any single company. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Take Over

To Sum It Up

  • USAA is more affordable in almost every category when compared to Liberty Mutual.
  • Liberty Mutual has a military discount.
  • Liberty Mutual has more discount options than USAA.

If you’re a current or former military member looking for insurance veterans can afford, you may think of USAA. It’s a company built for those in the armed services. However, Liberty Mutual offers more discounts than USAA, which you may benefit from each year.

Both companies have been around for nearly 100 years; Liberty Mutual was founded in 1912 as the Massachusetts Employees Insurance Association following the state law passage that required employers to provide worker’s compensation insurance. USAA was started in 1922 in San Antonio as the United Services Automobile Association by Major William Henry Garrison and 24 of his army officers.

If you’re ready to start comparing auto insurance providers in your area, begin using our free tool. Enter your ZIP code now to find the best auto insurance quotes near you.

Unsure which auto insurance company is best? Read on to learn about Liberty Mutual and USAA’s company rates.

Comparing Rates

The average car insurance cost annually for USAA is $2,489.4925 and Liberty Mutual is $5,295.55.

USAA has better rates than does Liberty Mutual, as it does when pitted against most companies. Based on auto insurance premiums, USAA is the most affordable, the best for military and veterans across the country. However, you may be in the military, but someone you want to add to your policy doesn’t qualify under USAA, or maybe you’re not in the military yet.

If that’s the case, keep comparing these two companies. Liberty Mutual and USAA team up to offer discounts, so you may find these companies aren’t all that different.

But, what are the third-party companies saying about these companies?

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Comparing Company Ratings

According to consumer complaint data, USAA has at least 100 more complaints year after year compared to Liberty Mutual. However, USAA has more than 13 million members; Liberty Mutual’s customer count was inconclusive.

Both companies have comparable ratings from third-party companies.

  • A.M. Best – Liberty Mutual was given an “A,” and USAA car insurance has an “A++” rating.
  • From Moody’s, Liberty Mutual was given an “A2,” and USAA was given an “Aaa”
  • And S&P’s gave Liberty Mutual an “A” and USAA an “AA+.”

While J.D. Power gave USAA five out of five stars for power rankings, it gave Liberty Mutual a three out of five. Liberty Mutual received a J.D. Power award for the most satisfying purchase experience in 2015.

Learn more in the next section about military discounts and other discounts these companies offer.

Comparing Military Discounts

USAA is a program seeking to be the best car insurance option for veterans. USAA offers more than just auto insurance. It also provides veterans, active military members, and their families all types of coverage, including life, flood, and small business insurance — to name a few. 

The company is an all-in-one stop for military members, which could be beneficial to your family. 

Below is a table of all the military discounts available by the company.

Military Discounts from the Major Auto Insurance Companies
DiscountsEmergency DeploymentMilitaryMilitary Garaging
21st Century
American Family
Country Financial
Esurance✓- 25%
Geico✓- 25%✓- 15%
Liberty Mutual✓- 4%
MetLife✓- 15%
Safe Auto✓- 25%
State Farm
The General
The Hanover
The Hartford
USAA✓- 15%
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USAA is very affordable for its policyholders, which helps it hold its title as the military’s largest insurance provider. It also rewards its members for being loyal, leading to more savings. Its website claims drivers saved $707 in the first year after switching to USAA from another auto insurance provider. 

USAA offers discounts for driving: 

  • Safe Driver 
  • Defensive Driving 
  • Driver Training 
  • Good Student 
  • New Vehicle 
  • Multi-Vehicle 
  • Annual Mileage
  • Vehicle Storage
  • Family Discount 
  • Length of Membership
  • Military Installation

Below check out the full list of discounts — and who offers a military discount — of the major insurance providers.

Discounts offered by Liberty Mutual include a military discount to active, retired, or reserved members of the armed forces. Liberty Mutual also doesn’t disclose what that discount may take off your annual premium — which isn’t promising.

  • Homeowner Discount
  • Military Discount
  • Early Shopper Discount
  • Good Student Discount
  • Student-Away-at-School Discount
  • Advanced Safety Features Discount
  • Alternative Energy Discount
  • Anti-Theft Device Discount
  • Accident-Free Discount
  • Violation Free Discount
  • RightTrack
  • Multi-Policy Discount
  • Multi-Car Discount
  • Preferred Payment Discount (auto payments)
  • Pay-in-Full Discount (pay the annual premium in one or two payments)
  • Online Purchase Discount
  • Paperless Policy Discount

Learn more about who offers a discount to veterans for auto insurance.  Below, the table lists what discounts are available to military personnel and veterans.

Discounts21st CenturyAAAAllstateAmerican FamilyAmeripriseAmicaCountry FinancialEsuranceFarmersGeicoLiberty MutualMetLifeNationwideProgressiveSafe AutoSafecoState FarmThe GeneralThe HanoverThe HartfordTravelersUSAA
Adaptive Cruise Controlxxxx
Adaptive Headlightsxxxxxxxx
Anti-lock Brakesxxxxxxxxxxxxxxxxxxxxxx
Claim Freexxxxxxxxxxxxxxxxxxxxxx
Continuous Coveragexxxxxxxxxxxxxxx
Daytime Running Lightsxxxxxxxxxxxxxxxxxx
Defensive Driverxxxxxxxxxxxxxxxxxxxxxx
Distant Studentxxxxxxxxxxxxxxx
Driver's Edxxxxxxxxxxxxxxxxxxxx
Driving Device/Appxxxxxxxxxxxxxx
Early Signingxxxxxxxxxxxxxx
Electronic Stability Controlxxxxxxxxx
Emergency Deploymentx
Engaged Couplex
Family Legacyxxxxxx
Family Planxxxxx
Farm Vehiclexxxx
Fast 5x
Federal Employeexxxx
Forward Collision Warningxxxxxxx
Full Paymentxxxxxxxxxxxxxxxxx
Further Educationxxxxxxxxx
Good Creditxxxx
Good Studentxxxxxxxxxxxxxxxxxxxxxx
Green Vehiclexxxxxxx
Lane Departure Warningxxxx
Life Insurancexx
Low Mileagexxxxxxxxxxxxxxxxxxx
Military Garagingx
Multiple Driversxx
Multiple Policiesxxxxxxxxxxxxxxxxxxxxx
Multiple Vehiclesxxxxxxxxxxxxxxxxxxxxx
New Addressx
New Customer/New Planxxx
New Graduatex
Newer Vehiclexxxxxxxxxxxxxxxx
Newly Licensedx
Occasional Operatorx
On Time Paymentsxxxx
Online Shopperxx
Paperless Documentsxxxxxxxx
Paperless/Auto Billingxxxxxxxxxxxxxxxxx
Passive Restraintxxxxxxxxxxxxxxxxxxxxxx
Recent Retireesxx
Roadside Assistancexx
Safe Driverxxxxxxxxxxxxxxxxxxx
Seat Belt Usex
Senior Driverxxxxxxxxx
Stable Residencexxxx
Students & Alumnixxxxxx
Switching Providerxxxxxxxxxxx
Utility Vehiclexxxx
Vehicle Recoveryxxxxxxxxxxxxxxxxxxxxx
VIN Etchingxxxxxxxxxx
Young Driverxxxxxx
Discounts Provided21212927182726343432383835362230202022382828
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Think you’ve got enough? Time to start comparing your possible auto insurance companies.

Do Your Research

If the military connection is essential for you and your family when purchasing auto insurance, USAA may be the choice for you. USAA has been proudly serving our military and veterans since 1922, while Liberty Mutual has been around just 10 more years. As you can see, both companies have excellent reputations for customer service and financial strength.

Liberty Mutual offers military discounts, though not as extensive as USAA. They offer very similar programs and benefits, which can be hard when you’re choosing a provider. You have all the information you need. Now you need to get an auto insurance quote.

Remember, auto insurance providers will collect demographic information to give you an insurance rate. These factors will include:

  • Age
  • Driving history
  • Car make and model year
  • Location
  • How often you drive
  • What you use the car for
  • Who is in the car with you

Ready to start comparing affordable auto insurance rates in your area? Enter your ZIP code to compare rates before you buy auto insurance.

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Frequently Asked Questions: USAA vs. Liberty Mutual

So, what is the best auto insurance for veterans? Both companies have great rates and great ratings. It’s hard to decide which is best for you. After reading this guide, you may still have more questions. Read on to learn more.

#1 – Is USAA insurance through Liberty Mutual?

USAA does offer exclusive USAA discounts through Liberty Mutual. You will need to sign on the USAA website to see exactly what those discounts are. But these discounts are provided not just to auto insurance policies but also homeowners, renters, and condo insurance.

#2 – Is USAA car insurance for the military only?

Yes. If you want to purchase car insurance from USAA, you, your spouse, your parent, or your parent’s spouse must be in the military. However, USAA is not limited to car insurance. It has a myriad of options, including homeowners and life insurance.

#3 – Does Liberty Mutual have a military discount?