Liberty Mutual Car Insurance Review of 2023
Liberty Mutual, as a brand, commits to helping customers only pay for the car insurance risk that matches their family and driver exposure.
Liberty Mutual lives up to its name and marketing by offering educational tools that help car insurance shoppers understand the risk and determine how much coverage they need.
A good claims history and no tickets for drivers help boost the discount rating. But even if you don’t have a spotless record, you’ll still find a budget that meets your car insurance needs. Cars with a loan require different coverage, which can be tailored specifically to you and is available with Liberty Mutual.
Liberty Mutual Company History
In business for over 100 years and with a financial rating that matches longevity and strength, the company is a top car insurance company. A financial rating by A.M. Best of an “A” Excellent rating. Opening its doors in 1912 as a worker’s compensation company in Massachusetts it grew over time and now offers a multi-line insurance portfolio of products. It was the 6th largest property/casualty company in the US, with 45,000 plus employees worldwide.
Today consumers find a splash of educational articles on the website including quizzes about insurance that help drivers better understand and retain more of what they read before buying car insurance. Liberty Mutual is a stronger contender as one of the top insurance companies in the market for auto insurance. The company is also a mutual insurance company which means the policyholders own the company.
Liberty Mutual Overview
RighTrack, the usage-based insurance (UBI) driver tool, along with the mobile app, are key tools in saving customers premium dollars and giving them online access 24/7. The bundling option with Liberty Mutual could see savings of up to $950, depending on the market and coverage options chosen. The RightTrack program and a violation driver discount are 2 of the bigger discounts for savings. Each state may be somewhat different in what driver history looks like and all the other factors. Liberty Mutual has a webpage to check your state requirements and options.
Liberty Mutual Car Insurance Basic Coverage
Liberty Mutual offers basic car insurance coverage to meet any state minimum requirements.
However, PropertyNest like other insurance industry professionals recommend buying limits higher than the lowest available for added protection.
That’s because if the cost of accident claims and medical expenses exceed the policy limits, the driver or person who owns the policy is responsible for any additional cost incurred.
The highest liability limit for an accident with Liberty Mutual is $500,000. Car insurance covers other people and property when you are at fault and can cover people in your car and your property with the right coverage.
Car Insurance that covers other people and other property
- Bodily Injury and Property Damage Liability: They are designed to pay damages caused by a covered accident or claim where the person driving causes injury to someone else or damage to their property.
- Split Liability Limits: Consumers can choose a liability limit of 100/300/100 for example. That means coverage is afforded in the amount of $100,000 per person for bodily injury and up to $300,000 for all injuries and people in the accident. An additional $100,000 is afforded for property damage.
- Combined Single Limits (CSL): If you choose, for example, a single limit of $500,000 can apply to bodily injury or property damage.It can pay expenses for bodily injury of one person up to $500,000 or multiple people. The property damage can go as high as $500,000. The total coverage is still $500,000 no matter who it is divided out between bodily injury or property damage.
An insurance company may offer options when buying liability coverage for bodily injury and property damage. The state where you live might drive the type of coverage option you see in a quote. If you want to see both options, you’ll likely need to ask.
Car Insurance that Covers You and The People in Your Car
- Uninsured/underinsured Coverage: Not all states require this coverage, but it is backup coverage if the person who causes bodily injury to you or others in an accident does not carry insurance or proper limits to cover bodily injury. If someone doesn’t have any car insurance or lower bodily injury limits than you do, this coverage is designed to pick up the gap until your policy limits are gone, too. Consumers should consider choosing the same limit options for this coverage as chosen for bodily injury liability.
Car insurance that Covers All The People in any Car Involved in The Covered Accident
- Medical Expenses or Personal Injury Protection (PIP): Both options are similar in coverage, but not every state offers both. When you are liable the coverage pays for medical expenses, hospital stays, and funeral expenses if there is a death. PIP coverage may offer additional benefits in contrast to medical expense coverage like lost wages. Most insurance agents automatically add this coverage to the car quote, so be sure to check the quote to confirm coverage in case you don’t want to add it.
Liability Coverage Limit and Deductible Options
Limits
Liability coverage limits determine how much the insurance company will pay after a covered accident or claim.
There is no liability deductible when the insured has an at-fault accident or claim and other people have bodily injury or property damage like their vehicle.
Liberty Mutual offers up to $500,000 in split limits for bodily injury and property damage.
Deductibles
The amount you pay out-of-pocket after an accident or claim to repair your vehicle when you are at fault and carry optional comprehensive or collision coverage.
Liberty Mutual offers a -0- dollar deductible on glass coverage as well as fixing chips or dings in a windshield before a full replacement is needed.
The higher your deductible, the lower the premium, but remember, you’ll have a higher out-of-pocket cost at claim time.
Coverage To Consider with a Brand New Car and Loan or Lease
If you are buying a brand new car the loan company wants to be protected and so you’ll be required to carry additional coverages like a comprehensive and collision endorsement.
Many times the car dealership or finance company offers coverage options similar to insurance.
Warranty plans that may include towing service or gap coverage for a total loss should be compared for pricing and coverage with insurance options.
Consumers may find towing and loan/lease pay-off coverage less expensive to buy through car insurance in contrast to a warranty with a car loan/lease.
Comprehensive
If your vehicle is damaged due to theft, vandalism, or an act of nature to name a few, including glass damage the insurance company will repair or replace the parts like they were new.
Collison
Hitting another vehicle or a stationary object can trigger an insurance claim to repair or replace the vehicle regardless of fault.
24-Hour Roadside Assistance
No matter why or where your car breaks down, tow services will take your car to the nearest qualified facility. Lockout service, gas delivered when you’re out, and flat tire changes included. The cost of gas is not routinely included.
Liberty Mutual offers several additional optional coverages for owners of brand-new cars that are worth getting a quote for comparison. Only new cars in which the insured is the first owner are eligible for this type of optional coverage.
Gap Coverage
If your new car is totaled in a covered accident and you owe more than the value, this add-on pays an additional percent over the value to help pay off the loan or lease.
New Car Replacement
A total loss accident with your brand-new car in the first year and there is no depreciation in value.
Better Car Replacement
If your brand-new car is totaled in an accident, you’ll receive additional funds to buy a car one year newer.
Original Parts Replacement
An add-on that requires repair of your car after an accident with original equipment manufactured (OEM) parts rather than After Market parts to complete the repair or replacement. (Older cars may also qualify for this optional coverage)
Liberty Mutual Optional Add-on Coverages
At Liberty Mutual, these additional add-on coverages can meet almost anyone’s car insurance needs. Remember, optional coverages or add-ons will increase the premium.
Rental Reimbursement
When your car is in the collision center due to a covered accident, you will be reimbursed for the rental of another car up to your policy limits. Liberty Mutual offers several levels of service and limits for this coverage.
Liberty Mutual Deductible Fund
Unique to Liberty Mutual is the option to lower your deductible. Every year $30 goes toward lowering your deductible by $100. The coverage limit is the full deductible amount.
Lifetime Repair Guarantee
Work with a Liberty Mutual-approved collision center and the repair work is guaranteed for as long as you own the car. Guarantee work must be done at one of 2,000 approved repair facilities.
Mexico Car Insurance
An optional coverage specifically for crossing the border and traveling by car in Mexico.
Alumni or Professional Discounts
Organizations, university alumni groups, large corporations, and professional groups partner with Liberty Mutual to offer additional benefits to car insurance customers.
Teachers Property Coverage
Vandalism loss protection and up to $2,500 per occurrence for property stolen or damaged while in your vehicle. Collision coverage with a -0- deductible depending on the specifics of the accident.
Liberty Mutual Insurance Discounts
Liberty Mutual offers its own set of unique discounts beyond the bundle that can reduce your premium without sacrificing coverage or limits.
The discount categories can be broken down into overall policy discounts and driver or vehicle discounts.
- Homeowner discount: Regardless of which company insures the home.
- Military discount: Retired and active duty members of the military are eligible for discounts.
- Policy bundling: Add multiple policies insured by Liberty Mutual.
- Multi-Car discount: Owning more than one car insured with Liberty Mutual.
- Paid-in-full or auto-pay: Qualify for savings when you pay the annual premium or enroll in automatic payments.
- Paperless communication: Sign up for paperless billing and policy documents and save.
- Online purchase: Extra discount for purchasing the policy online.
- Claims and violation-free: Maintain clean driving and claims record to be eligible for this discount.
- RightTrack Program: Enrolling in RightTrack gets you a 10% discount right away, but you can get up to an additional 30% off once enrolled in the program.
- Student-away discount: If a student member of your family is away at school, you may qualify to save.
- Good Student discount: A student member of your family can qualify you for a discount on your premium.
These are Liberty Mutual's main discounts offered but can vary by state. So, it's important to check for discounts in your state either by going to their website or speaking with an agent.
What Factors Impact an Insurance Rate with Liberty Mutual?
Multiple factors impact someone’s insurance premium beyond the coverage limits, deductibles, coverage options, and discounts.
Here are a few of the common insurance factors that Liberty Mutual uses in underwriting a car insurance application:
- Every driver's past driving record
- Where you live
- Accident and Driving Record
- Claim History
- The cost to repair your car
- How often you drive and how many miles you go
- Coverage options and limits
- Credit score
- Addition of another driver to the policy
- Inflation
- Discount changes
Customer Service Options & Availability
Liberty Mutual offers a variety of communication options for prospects and customers.
The brand name in a retail location might not have the visibility consumers are looking for, but Liberty Mutual does offer plenty of communication channels.
- Local independent agent assistance during regular business hours
- A corporate call center for 24/7 service and support
- Online website with education quizzes
- Mobile apps for claims and service
- Quotes and buying car insurance can be obtained online, through a call center, or a local independent agent
Customers can get policy information on their own, print ID cards, pay a bill, report a claim and see what other products Liberty Mutual has with the website and mobile app.
Liberty Mutual Claims Service
Excellence is the expectation when there is a covered accident and you need help. Liberty Mutual continues the forward-thinking mindset and offers customers a claims process that fits their schedule, and communication style. According to industry surveys, Liberty Mutual can be inconsistent in claims service.
How Does Liberty Mutual Compare Against Other Car Insurers?
When comparing Liberty Mutual, discounts that focus on a brand-new car are hard to beat.
But, each car insurance company completes the application review process a little differently.
We compared GEICO, well-known for auto insurance and a one-stop shop where Allstate agents only represent one company, to see how they compare against Liberty Mutual.
| Company | PropertyNest | J.D. Power (out of 1,000)* | A.M. Best - Financial Strength Rating | BBB |
| Allstate | 5.0 | 826 | A+ | A- |
| Mercury | 4.5 | 827 | A | A- |
| GEICO | 4.5 | 824 | A++ | A+ |
| CONNECT by American Family | 4.5 | 834 | A | A+ |
| Liberty Mutual | 4.5 | 818 | A | A+ |
| State Farm | 4.5 | 817 | A++ | A+ |
| CSAA Insurance Group (AAA) | 4.0 | 814 | A+ | A- |
| Farmers | 4.0 | 809 | A | A- |
| Progressive | 4.0 | 803 | A+ | F |
| Nationwide | 4.0 | 787 | A+ | A+ |
| Kemper | 4.0 | 748 | A- | A+ |
Liberty Mutual Vs. GEICO
Both Liberty Mutual and GEICO understand the claim compassion scenario. Everyone wonders what the following car insurance renewal will look like after an accident. GEICO wins the challenge as surcharges for an at-fault accident may not run as high.
Liberty Mutual has the edge for brand-new car owners as they have multiple optional coverages that GEICO can’t compete against for brand-new cars. Both insurers have a UBI program that meets consumer expectations.
| Liberty Mutual | GEICO |
|---|---|
| Multiple brand-new car optional coverages | Customer service meets consumer expectations |
| Easy-to-use tools for getting a quote and buying car insurance | Multi-car discounts offer savings of up to 25% on basic coverage |
| Discounts for students that make coverage affordable | Affordable minimum state limit requirements |
| J.D. Power (out of 1,000) | 824 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
Liberty Mutual Vs. Allstate Car Insurance
What sets Allstate apart is its national presence as a one-stop shop for coverages. Allstate Insurance has the stability and financial strength to grow with the changing car insurance environment, even though they are slightly newer than Liberty Mutual.
Both companies understand accidents happen anywhere and offer savings discounts with deductible options that can result in less out-of-pocket costs at claim time.
Allstate Insurance enjoys a local agent and retail office presence with name-brand recognition that Liberty Mutual does not in working with independent agents. We give the edge to Allstate because of the local retail insurance office and agent presence.
| Liberty Mutual | Allstate |
|---|---|
| RightTrack UBI program available as an option | Longevity and financial strength in the marketplace |
| Deductible options are plentiful including glass | Name brand recognition with local retail insurance offices |
| New car coverage add-on’s for a total loss | Avail a unique option for ride-share drivers |
| Low mileage driver endorsement that can reduce premium |
| J.D. Power (out of 1,000) | 826 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 4.04 |
| BBB | A- |
Conclusion
Overall, Liberty Mutual meets our expectations with a national presence and an independent agent base that is available in most communities in the country. The limits, deductibles, and all the factors discussed will impact the final rate you’ll pay for the coverage you want. So remember, the higher the limits and more coverage options, the higher the premium.
No matter where you start your search to find the cheap or at least affordable car insurance that matches you, make sure you compare at least 3 car insurance companies. Each company has a different review process for car insurance applications. So adding comprehensive and collision endorsements or add-ons increases the amount of a loss paid by the insurance company and will increase the premium, too.
Liberty Mutual is a good fit for car insurance shoppers and offers robust options for consumers with a brand-new car that neither of the other companies can match.
