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?

Answer
“Auto insurance companies like Farmers and Liberty Mutual have similar ways of pricing policies. However, the difference is that many companies will lower their rates for first-time customers to entice them to switch providers.
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.
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.
But don’t confine yourself to just looking at one or two companies. Shop around. An intelligent AI-based tool like Jerry is the easiest and most effective way to find a car insurance policy that is customized for you.”
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Eric Schad
Answered on Apr 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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