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Why is my car insurance so much cheaper with Liberty Mutual compared to Farmers?

It feels like Farmers keeps increasing my rates. I put in the same coverage amounts on Liberty Mutual's website and according to the quote I got, I would save $200 over a six-month policy. Why is Liberty Mutual so much cheaper?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Auto insurance companies like
Farmers
and
Liberty Mutual
have similar ways of pricing policies, but many companies will lower their rates for first-time customers to entice them to switch providers.
You might find over a year or two that the Liberty Mutual rate creeps up to where the Farmers rate is now. This is fairly common.
Keep in mind that companies also use their own proprietary formulas to determine premiums. They may weigh certain factors like zip code and
credit score
differently—or they may not consider them at all. 
It’s normal for different companies to offer you slightly
different rates
. However, a huge discrepancy may be a sign that you’re either benefiting from an introductory rate or something odd is going on.
View full answer 
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