Liberty Mutual is one of the most popular auto insurance carriers in the country. But does their car insurance offer value for money?
In this Liberty Mutual car insurance review, we’ll take a closer look at their auto insurance policy, their coverage, policy costs, the discounts they offer as well as their accessibility, among others.
Liberty Mutual auto insurance provides coverage for personal injury protection, property damage, bodily injury liability, and medical payments. They also offer additional or optional coverage like rental car reimbursement, new car replacement, roadside assistance, uninsured motorist coverage, teachers car insurance and roadside assistance, among others.
We are committed to providing transparent, comprehensive, and objective reviews, to help you choose the best car insurance for your needs. If you are shopping for car insurance, here is everything that you need to know about Liberty Mutual car insurance.
About Liberty Mutual
Headquartered in Boston, Liberty Mutual is an insurance company that has been around since 1912. Their insurance products include home insurance, auto insurance, specialty insurance, and commercial insurance, among others.
With over 100 years in the insurance industry, it’s no surprise that Liberty Mutual is one of the most established insurance companies. They have a presence in all the states, mainly operating through various subsidiaries.
What Types of Auto Insurance Does Liberty Mutual Offer?
So, what types of car insurance coverage does Liberty Mutual offer? Well, Liberty Mutual offers both standard coverage and additional or optional coverage. The following coverages come standard.
Medical Payments Coverage
If you are hurt during an auto accident, Liberty Mutual will take care of your medical payments, regardless of who was at fault.
Passengers in your car at the time of the accident will also be covered under medical payments coverage.
Medical payments coverage will also cover family members if they suffer injuries as pedestrians in your car. Also, they will be covered if they are injured as pedestrians traveling in another person’s car.
However, family members will only be covered, if they are living with you at the time of the accident. Ambulance transportation and initial hospital stay are some of the expenses that fall under medical payments coverage.
Personal Injury Protection
Personal Injury Protection or PIP is designed to take care of your expenses after the initial medical care.
Some people tend to assume that personal injury coverage and medical payments coverage are the same thing. However, the two coverages are different.
Medical payments coverage will only take care of initial care medical expenses. Personal injury coverage, on the other hand, will take care of expenses during and after the initial medical care.
The requirements for PIP vary from one state to the other. For example, some states like Florida, Delaware, Kentucky, Kansas, Massachusetts, New Jersey, Michigan, New York, Oregon, Minnesota, Utah and North Dakota mandate PIP coverage.
If you live in one of these states, then Liberty Mutual will add personal injury protection to your coverage when determining your policy cost. From there, you can then choose the PIP coverage that you want, based on your needs.
Property Damage Coverage
Property damage coverage also comes standard with Liberty Mutual car insurance. So, if you are involved in an accident and you are held responsible, this coverage will take care of the expenses incurred in replacing or repairing the other party’s property.
Property damage coverage is not limited to vehicles only. If you damaged another person’s property like a fence or a mailbox, Liberty Mutual auto insurance will pay for those damages and other associated costs.
However, you should keep in mind that if the cost of the damage is higher than the amount of your property damage coverage, then you will have to cover the remaining cost.
You can opt for a higher coverage limit for property damage coverage, which means you will receive a higher payout if you are held liable for an accident.
Choosing a higher limit means that you will pay a lower out-of-pocket amount if the damage exceeds your coverage.
Bodily Injury Liability Coverage
If you have been involved in a car accident and you have been held liable, then this liability coverage will pay for the medical expenses for those injured.
Bodily injury liability coverage will also pay for legal defense, in case you are sued for damages associated with the car accident. Liberty Mutual bodily injury liability coverage will cover the following:
- Medical costs
- Legal expenses
- Legal counsel
- Pain and suffering
- Loss of income
- Funeral costs
Most states have a minimum requirement for bodily liability coverage. You can then opt for a higher limit if you want more protection.
Additional or Optional Coverages
Liberty Mutual also offers several optional coverages, for those looking for additional protection. Some of the coverages that come optional include:
If you are a Liberty Mutual car insurance policyholder and your vehicle is damaged during an accident, this coverage will pay the cost of replacing or repairing it, regardless of who is liable.
Collision coverage also extends to objects like trees or guardrails. Collision insurance will be ideal for someone who owns a new, more expensive, leased or financed vehicle.
With this optional coverage, you will avoid paying out-of-pocket to have the car repaired or replaced. You will also be adequately covered when the vehicle is damaged beyond repair or totaled.
Uninsured Motorist Coverage
You may sometimes be involved in an accident that doesn’t have insurance. Unfortunately, if you only have a standard Liberty Mutual car insurance policy, then you may be forced to take care of all the expenses arising from the accident.
And this is where uninsured motorist coverage comes in. If you have purchased this optional coverage, Liberty Mutual will pay you for damages caused by the other party that doesn’t have auto insurance.
The coverage will help to pay for the costs of repairing or replacing your car as well as medical bills, pain and suffering, and lost wages if you can’t work after the accident.
Uninsured bodily injury coverage and uninsured property damage are required in at least 20 states. But as much as it may not be required in your state, it will provide you with additional protection, in case you are involved in a collision accident with an uninsured driver.
Comprehensive Car Insurance
Comprehensive car insurance is an optional coverage, which will protect your car from damage arising from non-collision incidents.
With Liberty Mutual’s comprehensive car insurance, you will have additional protection when your car is damaged by things like floods, storms, vandalism, theft, fire or anything else that is not covered in the standard policy.
Mexico Car Insurance
Liberty Mutual also provides insurance coverage for U.S citizens who are heading down to Mexico.
Your U.S car insurance policy will not cover you when you drive into Mexico, and that’s why you will need a separate policy.
Mexico car insurance is available for RV’s pickups, cars, and other types of vehicles. Also, it’s available in various coverage options and limits, making it easy to choose one that aligns best with your needs.
New Car Replacement Insurance
If you have purchased a new car and it’s totaled within its first year, Liberty Mutual will give you money to purchase a brand new car through the new car replacement insurance coverage.
But for the car to qualify for this coverage, it shouldn’t have covered more than 15,000 miles. If it has exceeded this mileage, then it will not be eligible for this protection, even if it’s new and under one year old.
Teachers Auto Insurance
Liberty Mutual also offers a custom-designed auto insurance policy for teachers. This customized car insurance covers the following:
- Vandalism loss protection
- Personal property coverage
- Collision coverage
Vandalism loss protection will compensate you if your car is vandalized when it’s on school property.
For personal property coverage, Liberty Mutual will compensate you if another party damages or steals school-owned property while it’s in your vehicle. The coverage limit for personal property is $25,000 per occurrence.
Better Car Replacement Insurance
As the name suggests, better car replacement is an insurance policy whereby Liberty Mutual will give you money to replace your car, with a better model.
So, if you have purchased this additional insurance coverage and your car is totaled, Liberty mutual will give you money to purchase a replacement car, which is newer by at least 15,000 miles than the one you currently own.
For instance, if your totaled car was a 2020 model with 30,000 miles on it, then Liberty Mutual, via the better car replacement insurance, will give you enough money to purchase a replacement 2021 model with 15,000 miles on it.
Rental Car Reimbursement
If you are involved in a covered auto accident, Liberty Mutual will cover the costs of a rental car through this policy.
This insurance policy is designed for people who rely on their cars every day, whether it’s going to work or dropping kids to school.
Lifetime Repair Guarantee
A lifetime repair guarantee is a type of auto insurance, designed to help eliminate the stress of fixing a car after an accident.
With this policy, Liberty Mutual will make all the arrangements for the car to be repaired. They will pay the auto repair shop directly and follow up on the repairs. You can also track the repairs yourself by logging into your online account.
Furthermore, they will guarantee these repairs, as long as the policyholder maintains ownership of the car.
Liberty Mutual will also guarantee the repairs, if the policyholder opts to have their car fixed at one of the nationwide Guaranteed Repair Network auto shops.
Gap coverage is an optional Liberty Mutual car insurance coverage, which will pay off your car loan, in case your car is stolen or totaled.
This coverage will pay for the difference between what you still owe the car and its depreciated value.
For example, you may have purchased a brand new car for $20,000 and you still owe $10,000 on the auto loan.
If the car gets totaled and its depreciation value is currently at $17,000, then your Liberty Mutual collision coverage will only pay up to $17,000.
If you don’t have gap insurance, you will have to pay the $3,000 difference out of pocket. With gap insurance, you will be covered for that difference, meaning you will not incur out-of-pocket costs.
You must purchase this optional Liberty Mutual insurance coverage at the same time as your car. Also, you must be the first owner of that car to qualify for the payout.
Liberty Mutual also runs a 24-hour roadside assistance program, offered through the towing and labor cost coverage.
It covers things like towing the vehicle to the nearest qualified facility, delivering emergency fuel, jump-starting a dead battery, unlocking vehicle doors and changing a flat tire, among others.
You should note that this program will only cover labor charges incurred at the scene of the breakdown. Hence, it doesn’t cover the parts.
For example, if your vehicle needs a tire change, Roadside Assistance will only pay for the fee of changing the tire and not the cost of purchasing the new replacement tire.
Umbrella Personal Liability Coverage
Also known as umbrella insurance, umbrella personal liability policy is a type of insurance coverage that is designed to protect against larger claims that your current auto insurance can cover.
Umbrella liability insurance covers additional liability coverage over the limits of your auto insurance policy, all the family members living in your household, and payment of attorney fees, defense costs, as well as other associated expenses arising from a lawsuit.
For example, you may be involved in a vehicle accident and the other party ends up with serious injuries or astronomical medical bills.
That party may decide to sue you, and the jury sides with the plaintiff, and awards them a judgment of $700,000.
If your current auto policy is $250,000, then you will be left with a deficit of $450,000. Without an umbrella policy, you will be forced to pay the difference out of pocket. And you may end up using your retirement nest.
On the other hand, if you have an umbrella policy of $1 million, then it will cover the $450,000 deficit, meaning you don’t have to use your retirement savings. You will also be left with some money in your umbrella policy, which can go towards legal expenses.
Without a doubt, Liberty Mutual offers several coverages, both standard and optional. Therefore, you can either opt to purchase the standard coverage or upgrade to the optional packages, depending on the level of coverage that you want.
How Much is Liberty Mutual Car Insurance?
The average cost of car insurance in the U.S is $1,134 according to Policy Genius. Minimum car coverage is approximately $560 per year while full car coverage is around $1,600 annually.
On average, you should expect to pay approximately $100 per month for a standard Liberty Mutual car insurance policy.
Their rates tend to be lower than those charged by the majority of other auto insurance providers like Farmers Insurance, Allstate, and Travelers.
What Determines the Cost?
While the average cost of Liberty Mutual auto insurance is $100 per month, the actual cost that an individual will pay will depend on various factors.
Liberty Mutual has an online auto insurance calculator, which you can use to get a quote estimate. The calculator uses some of the following factors to determine your estimate.
Your ZIP code is the first thing that Liberty Mutual will ask you to provide when calculating your auto insurance quote. And you may be probably asking yourself how your location can determine your rates.
Well, if you live in a densely populated neighborhood, then accidents will be higher. Consequently, insurance claims coming from that neighborhood will be higher.
So, people living in highly populated areas, for example, those in cities will pay higher rates than rural dwellers.
Liberty Mutual will also use your ZIP code to examine the rate of car theft in your neighborhood, cases of vandalism, damaging weather conditions as well as the number of fraudulent claims filed. And all this information will help them to determine your level of risk.
However, it’s important to note that some states prohibit the use of location as a rating factor.
For instance, in California, car insurance companies are required to first consider your driving record, yearly mileage, as well as driving experience before turning to your location.
Your driving record is one of the factors that Liberty Mutual will use, to determine your car insurance quote.
If you have a clean driver’s history, then you will qualify for lower rates. You will also be eligible for safe driver discount, which will help to lower your rate even further.
On the other hand, if you have been involved in an accident or you have a serious moving violation on your record like speeding, DUI, drag racing, reckless driving, hit and run, or driving without a valid license, then you are considered high risk by the insurer.
Consequently, you will have to pay higher insurance rates, compared to someone with a clean driving record.
Minor violations like speeding tickets can bump up your rates by approximately 30% while a major moving violation like DUI could push your rates up by 100% or even more.
The less the time you spend on the roads, the lower your risk of being involved in an accident.
On the other hand, if you have long daily commutes, then the chances of being in an accident are high.
Therefore, Liberty Mutual will consider your yearly mileage when calculating a car insurance quote. If your lifestyle has changed and you are now driving less, then you should inform Liberty Mutual about those changes, since you may qualify for lower rates.
While Liberty Mutual cannot deny you car insurance based on your credit history, your credit rating will determine how much you will pay for your policy.
For instance, people with low credit scores are highly likely to file more claims or commit insurance fraud. Therefore, such people are likely to pay more for insurance premiums.
If you live in Massachusetts, California, Michigan and Hawaii, then you are in luck. State laws in these states prohibit Liberty Mutual and other insurance companies from using credit rating as a factor for determining insurance rates.
The Car You Drive
Liberty Mutual will also consider the car you drive when determining your auto insurance policy cost.
First, it will cost more to repair a new car after an accident, compared to an old one. Also, new cars tend to attract more car vandals, compared to older ones.
As you may expect, it will cost you more to insure a new car with Liberty Mutual, compared to an older one.
Second, some car models are highly likely to be stolen. Such cars include a full-size Ford pickup and the Honda Accord. Hence, such vehicles will be more expensive to insure.
The use of a vehicle may also determine the cost of your auto insurance policy. For example, if a vehicle is mainly for personal use, then insuring it will be cheaper, compared to a commercial or business vehicle.
Adding a Driver
Adding a teenage driver to your policy can increase your Liberty Mutual auto insurance rate.
As you might guess, most teenage drivers are inexperienced, which means the chances of being involved in an accident are high.
Also, teenage drivers tend to be more reckless behind the wheel, compared to a 40-year old. They are likely to be involved in drag racing, speeding, and other moving violations.
So, if you add a teenage driver to your policy, then you should be ready to pay more for your Liberty Mutual car insurance policy.
The Type of Coverage
A standard Liberty Mutual car insurance policy comes with liability insurance, personal injury protection, collision insurance, and medical payments.
Therefore, if you want more insurance coverage than what the standard policy provides, then you will pay more for the policy.
Liberty Mutual’s online quote calculator will also ask you whether you are married or living with your spouse. So, why should Liberty Mutual consider your marital status when determining your auto insurance rate?
Well, auto insurance statistics show that married couples are safer drivers compared to unmarried people. And this translates to fewer accidents for the married people.
Apart from paying lower for auto insurance, married couples can also receive some discounts, if they opt to combine their car insurance under one provider.
But if you live in Montana, Michigan, Massachusetts and Hawaii, then Liberty Mutual will not use your marital status when determining your rate.
How is the Liberty Mutual Car Insurance Claims Process?
According to Liberty Mutual, their auto claims process takes approximately 5 to 10 minutes to file using an online account. To file the claim, you will just need to provide basic details of the accident. From there, a customer service representative will contact you within 1 to 2 business days and the process will commence. Here are the steps that follow after you’ve filed the claim.
After filing the claim, your vehicle will be examined at a vehicle repair shop, to determine the extent of the damage.
If a vehicle is stolen and not recovered, then that will be considered a total loss. And the company’s total loss adjuster will contact you and provide a detailed explanation of the valuation process.
Receive an Estimate
After the car is examined, Liberty Mutual will estimate the amount of money needed to repair it and restore it to its pre-accident condition.
They can also help you schedule the repairs, in case you are held up somewhere else. And if you use a repair shop in the company’s Guaranteed Repair Network, then the repairs will be 100% guaranteed, as long as you maintain ownership of the car.
You can either opt to receive the money and pay the repair shop yourself or let Liberty Mutual pay the auto repair shop directly after the repairs are completed.
If you opt for the latter, then Liberty Mutual will pay the entire cost for the repairs, except the deductible.
As you can see, the claims process is easy, transparent and fast. Furthermore, you can track the status of your claim by simply logging into your online account or contacting your claims representative.
Liberty Mutual car insurance will pay for a rental vehicle while yours is being repaired. But as you may expect, your insurance rental policy has maximum limits.
So, if you exceed those limits, then it will be your responsibility to pay for anything above the set limit. Also, you will be responsible to pay for:
- Additional expenses incurred after your vehicle has been repaired
- Loss damage waivers
- Fueling costs
- Fees charged for underage drivers
The rental company may also ask you for a deposit, which is payable via cash or credit card.
You should note that the rental period begins the day the repairs have been scheduled to start and end once the day the repairs have been completed.
If your vehicle is has been declared a total loss or it has been stolen, then the rental period will end the day you’ve been notified about your vehicle’s value or after exhausting your rental limit, whichever comes first.
What Auto Insurance Discounts does Liberty Mutual Offer?
Liberty Mutual offers numerous discounts, designed for those who are looking to maximize their auto insurance savings. Some of their auto insurance discounts include:
Liberty Mutual offers several types of insurance coverages like homeowners insurance, and car insurance, as well as insurance coverage for things like motorcycles, RVs and boats. If you decide to combine your auto policy with something else like homeowners insurance, then you will enjoy a discount of around 15% on each policy.
Liberty Mutual will also give you a discount if you opt to insure more than one vehicle through them. You will also be eligible for this discount if anyone else in your household insures their cars through Liberty Mutual car insurance.
Car Safety Features Discount
If your car is equipped with various safety features to keep the driver and the passengers safe, then you may qualify for the car safety features discount. Some of the features that qualify for this discount include anti-lock brakes, active and passive alarm systems, as well as passenger airbags.
Good Driver Discount
Liberty Mutual will examine your driving history for the last five years. And if you have not been involved in any violations or accidents, then you can receive a discount of 15% to 20% on your premiums.
Furthermore, having a 5-year clean driving record can qualify you for the company’s Accident Forgiveness program, which guarantees that your auto insurance rates will not increase after your first accident.
Affinity Group Discounts
If you are a member of any of the qualifying associations or groups, then you may be eligible for the company’s 10% discount. Members of the U.S Armed Forces also receive a Liberty Mutual car insurance discount.
Participating in the company’s RightTrack program could earn you a discount of up to 30%. However, most participants usually receive a discount of 5% to 10%.
In this program, you will allow Liberty Mutual to install a tracking device in your vehicle for 90 days, which will monitor your driving behavior like how fast you accelerate, time of the day you drive, how you brake as well as your daily mileage.
Liberty Mutual car insurance is available in all states. And most people will encounter no issues when obtaining auto insurance coverage from Liberty Mutual.
However, there are a few exceptions such as drivers with invalid or inactive licenses, or those with serious moving violations like DUI or hit and run.
Liberty Mutual has numerous communication channels, which you can use to get in touch with them.
Whether you are filing a claim, reporting fraud or just asking general questions, you can do so by calling them, sending an email, or using the mobile app.
Where Does Liberty Mutual Rank for Car Insurance?
Third-party rating companies like J.D Power, AM Best, and the National Association of Insurance Commissioners (NAIC), publish annual reports, showing how the different auto insurance companies perform in various areas.
So, how does Liberty Mutual perform compared to other auto insurance companies?
Customer Satisfaction Rating
The average industry score for customer satisfaction rating is 835 out of 1000. Third-party rating experts such as J.D Power give Liberty Mutual a score of 821 out of 1000, which is lower than the industry average.
Customer Complaint Ratio
According to the National Association of Insurance Commissioners (NAIC), Liberty Mutual earns a score of 3.56 for customer complaint ratio, which is way above the national average of 1.
Most of the customer complaints stem from claims handling, the underwriting process as well as the policyholder service. Also, some of their customers are not satisfied with the offers and settlements.
Insurance Digital Experience
Digital experience is one of the areas where Liberty Mutual outshines its competitors. According to the J.D Power 2020 Insurance Digital Experience Study, Liberty Mutual ranked second overall.
According to AM Best, Liberty Mutual and its various subsidiaries scored an A rating for financial strength. And this shows that they are a financially stable company, capable of meeting its ongoing insurance obligations like paying out large auto insurance claims.
- Plenty of coverage options
- Numerous discounts
- Easy online file claims
- Poor customer satisfaction rating
- Higher than average number of complaints
Liberty Mutual is a great choice for low-mileage drivers, teachers who want extra insurance coverage while on the job as well as people who want to upgrade their basic insurance policies with additional coverages.
But if you are looking for an auto insurance company that has great customer service and has a decent history of customer satisfaction when it comes to claims and settlements, then you should consider shopping elsewhere.
About THE AUTHOR
I've spent many years selling cars, working with auto detailers, mechanics, dealership service teams, quoting and researching car insurance, modding my own cars, and much more.Read More About Charles Redding