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January 15, 2021
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Liberty Mutual Car Insurance Review

As one of the largest property and casualty insurers in the country, Liberty Mutual offers a wide variety of auto insurance policies with discounts to help you save.

PROS

Variety of add-ons and coverage options. Aside from the traditional coverage options auto insurers offer (bodily injury, property damage, personal injury, medical payments, collision, uninsured and underinsured motorist) Liberty Mutual provides a bevy of extra coverage options.

While some of these options, such as roadside assistance and comprehensive coverage, are common with other insurers, the company also offers policies for teachers, as well as policies that cover other specialty vehicles such as ATVs, RVs, and antique cars.

Multiple discounts. Liberty Mutual scores high points with its discount options. At least 17 discounts are available, with many of those readily accessible to all types of drivers. Students, customers with multiple vehicles, good drivers, and online customers can earn discounts by meeting simple criteria, which we’ll look at in a moment.

Liberty Mutual has also entered the telematics market, in which you agree to allow the insurer to monitor your driving habits and distances traveled via mobile app, and then use the data to determine rates if the policyholder decides to participate.

Get a free quote from Liberty Mutual today>>

CONS

HIgher-than-average complaint ratio. The National Association of Insurance Commissioners (NAIC) is the state-based organization that determines regulatory standards for the insurance industry. Its complaint index compares a company’s performance with other insurance providers in their market.

The National Complaint Index median is 1.00, with anything above it indicating a higher than average number of complaints. For 2020, Liberty Mutual’s complaint index for private passenger insurance was 4.63, which is more than four times the national average.

Lackluster customer satisfaction. According to J.D. Power’s annual customer satisfaction studies, Liberty Mutual does not rank highly in overall satisfaction or claims satisfaction.

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The overall satisfaction surveys are divided into 11 regions (such as Central, California, Mid-Atlantic, Florida, etc.). Liberty Mutual ranked “Average” in five of the regions and below average in six.

That said, Liberty Mutual’s standing in the survey is mostly middling. In regions where it was above average, its satisfaction was only a little above the norm. Where it fell below average, it mostly did so only modestly, and several other large insurers had similar mediocre showings.

Liberty Mutual Auto Insurance Coverage Options

As previously mentioned, Liberty Mutual offers a host of car insurance coverage options and insurance products for different types of drivers and situations.

Standard coverage includes:

  • Bodily Injury Liability – pays for injury costs of any involved in an accident where you are at fault. Also covers legal defense in case you are sued for damages.
  • Medical Payments – coverage for your medical expenses related to an accident. Also covers passengers in your car.
  • Property Damage – covers the cost of repair or replacement of other’s personal property if you’re responsible for the accident. Includes damage to vehicles or property.

Your state might also require certain minimums in the following:

  • Personal Injury Protection (PIP) – takes care of additional expenses beyond the initial medical care that Medical Payments covers.
  • Uninsured Motorist – two different coverages: one for bodily injury and one for property damage. They help you cover costs if the other driver in an accident is at-fault and they don’t have insurance.

Additional coverage options will depend on your particular needs and circumstances. Optional coverage includes:

  • Collision – covers the cost of repair or replacement of your vehicle, regardless of who is at fault.
  • Comprehensive – a somewhat misleading name (it does not include every coverage option), comprehensive coverage insures your vehicle for unexpected damage that results from something other than a collision (such as fire, vandalism, theft, and others).
  • Liberty Mutual Deductible Fund – by paying an extra premium, you can reduce deductibles each year.
  • Lifetime Repair Guarantee – Liberty Mutual helps find and schedule an approved repair facility.
  • New Car Replacement – provides the entire sum to buy a brand-new car in the event that your own car is declared a total loss within one year of its purchase.
  • Better Car Replacement – for total-loss cars, the company provides the money to a model that’s one year newer than the car you had before.
  • Rental Car Reimbursement – covers the cost of a rental car if you’re involved in a covered accident.
  • Towing & Labor (24/7 Roadside Assistance) – Provides round-the-clock roadside assistance, which includes flat tires, running out of gas, dead batteries, towing, and locking yourself out of the car.
  • Gap Coverage – for total-loss cars that have a reimbursable value lower than what is owed. This coverage makes up the difference.
  • Original Parts Replacement – allows for the replacement of damaged parts with original parts rather than less expensive generic replacements.
  • Teachers Car Insurance – provides teachers with additional coverage for vandalism, collision, or theft of school supplies while using the vehicle for work.
  • Mexico Car Insurance – for vehicles traveling to Mexico.

Never pay too much for car insurance. It’s essential to study your coverage options carefully, making sure you’re protected for what really matters, and not over-insuring your vehicle with unnecessary coverage.

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Liberty Mutual Discounts

Liberty Mutual has substantial discount offerings and, unlike some car insurance companies, does not limit the number of discounts you can apply to your policy. Many of these discounts have simple requisites to meet, allowing more customers to benefit from them. Depending on your situation, you may qualify for the following discounts:

  • Homeowner – if you own your home.
  • Military – for active, retired or reserved individuals in the armed forces.
  • Early Shopper – by getting a quote through Liberty Mutual before your current policy expires.
  • Good Student – for students with a GPA of B or better.
  • Student-Away-at-School – for students away at school who only drive the car occasionally.
  • Advanced Safety Features – for having safety features such as anti-lock brakes, adaptive headlights, and others.
  • Alternative Energy – for electric or hybrid cars.
  • Anti-Theft Device – for vehicles with anti-theft technology.
  • Accident Free – for drivers with an accident-free history.
  • Violation Free – for customers with no violations on their driving records.
  • Multi-Policy – for those who hold one or more additional policies with Liberty Mutual, such as homeowners insurance.
  • Multi-Car – for those who insure more than one vehicle with Liberty Mutual.
  • Preferred Payment – for those who pay premiums through automatic payments linked to a bank account.
  • Pay-in-Full – if you pay your policy in one or two payments.
  • Online Purchase – if you pay your policy online.
  • Paperless Policy – if you choose to receive electronic statements.

Further, drivers who choose to enroll in Liberty Mutual’s telematic program, called RightTrack, could receive substantial discounts of up to 30% if certain requirements are met.

Get a free quote from Liberty Mutual today>>

Liberty Mutual Insurance Claims Process

Like many insurers now, Liberty Mutual offers an online claims filing process, if you prefer that. The company website has a comprehensive FAQ section that covers most, if not all, claims-related questions, such as required documentation, and how to schedule repairs or get a rental vehicle while your car is in the shop.

The claims process usually involves the following steps:

  • You file your claim either online, via phone call, or in person.
  • A Liberty Mutual Representative contacts you to gather information required to resolve the claim.
  • The vehicle’s damage is assessed, whether by photos or, in some cases, an in-person review.
  • The company offers an estimate of how much it will cost to repair or replace the vehicle. If necessary, they can help schedule the repairs.
  • You receive the money owed, minus the deductible, therefore finalizing the claim.
  • A specific timetable for a claims resolution will vary by claim. Generally, Liberty Mutual states that they review incident details after you file and contact you back within 1-2 business days. Customers can submit documentation and track the claim through their online account.

Liberty Mutual Company Information

Liberty Mutual is the sixth largest property and casualty insurance company in the world by written premiums. The Boston-based company has been in business for over 100 years and employs more than 45,000 thousand globally.

Liberty Mutual offers property-casualty, auto, renters, and home insurance, as well as commercial insurance and investment management.

FAQs for Liberty Mutual and Other Auto Insurers

How much car insurance do I need?

Determining how much car insurance you want is a personal choice. But knowing how much you actually need is another thing entirely. Every state, with the exception of New Hampshire, requires motorists to have car insurance, with each specifying particular coverage minimums that must be met.

Generally speaking, these minimums include bodily injury and property damage liability, with others needing personal injury, medical expenses, or uninsured motorist coverage.

Whichever the case may be, before finalizing any auto insurance purchase, make sure you know your state’s minimum coverage requirements. That said, keep in mind that experts typically recommend levels of coverage that are higher than those state requirements.

What factors determine my auto insurance rate?

Several factors go into calculating what your insurance rate is going to be. While you may be able to modify some, others are completely out of your control.

Age – Younger drivers typically pay more.
Gender – Generally, younger male drivers have higher premiums than female drivers of the same age. However, this trend shifts with older drivers.
Marital status – Married couples have lower rates than single drivers.
Driving record – Includes years of driving experience, history of accidents and moving violations.
Car use – Longer commutes and driving more miles every year tends to raise your rates.
Location – Rates will vary by geographical locations; urban areas tend to carry more risk of break-ins and car theft.
Type of car – Some makes and models are prone to theft, which could raise rates.
Claims history – Includes your past claims for no-fault and at-fault accidents.
Credit history – Includes your credit score and outstanding debt.

Is bundling insurance policies a good idea?

Combining different insurance policies from the same company can provide significant discounts, especially for homeowners and auto insurance. Bundling can also be convenient for customers who will only need to manage one account to access policy and billing information.

However, while a discount may be assured by bundling, overall savings across your insurance portfolio is not. Although you could net savings by having your policies with one company, you might still save more by shopping around to individual companies for each insurance type.

Liberty Mutual: Summary and Key Takeaways

  • Varied selection of coverage options and add-ons to protect you on the road.
  • Extensive discount opportunities for all types of drivers.
  • Considerably higher-than-average NAIC complaint ratio.
  • Below-average customer satisfaction, according to J.D. Power
  • About average in claims satisfaction, on par with other insurers of similar size.
  • File claims online, via phone, or in person.

Get a free quote from Liberty Mutual Auto Insurance today>>