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Last updated: February 5, 2024

Liberty Mutual Auto Insurance Review

Will you really only pay for what you need?

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For more than a century, Liberty Mutual has offered auto insurance throughout the U.S. Its online platform provides potential customers with an easy way to request quotes or sign up for new policies. Liberty Mutual provides many options beyond basic car insurance, including gap, new car replacement, and original parts replacement coverage. This review goes over what Liberty Mutual offers and how to evaluate whether it would be a good option for your auto insurance.

Key Takeaways

Liberty Mutual provides customers with many ways to tailor their auto insurance policies. However, it’s not ideal for everyone.

Who It’s Best For

  • Teachers
  • Young drivers
  • Drivers looking for specific add-ons, such as gap coverage
  • Those who travel across the border to Mexico frequently

Who It’s Not Best For

Pros and Cons of Liberty Mutual Car Insurance

Pros

  • Many types of coverage

  • Lots of discounts

  • Robust digital tools

  • Available nationwide

Cons

  • Does not offer discounts for defensive driving courses and airbags

  • Premiums can run higher than similar insurance companies

What Does Liberty Mutual Cover?

Like many auto insurance providers, Liberty Mutual has a list of standard options that come with every auto insurance policy it underwrites:

  • Collision: This coverage pays for your vehicle’s damage when it collides with another car or object, such as a tree or guardrail.
  • Comprehensive: A comprehensive policy covers your vehicle’s damage from incidents other than a collision, such as theft, vandalism, and weather damage.
  • Medical payments: Pays for you and your passengers’ initial medical expenses related to an accident that you caused.
  • Personal injury protection: Also known as PIP, this option covers medical expenses for you and your passengers because of an accident, no matter who was at fault.
  • Property damage: This type of coverage is for the cost of repairing or replacing another person’s property when you were at fault for an accident.
  • Bodily injury liability: This coverage option is for the initial medical treatments for the driver and passengers of other vehicles involved in the accident that you caused, as well as any injured pedestrians or bicyclists.
  • Uninsured motorist: If the other driver in an accident has no insurance, this coverage pays for your injuries and property damage, up to the limit you set, if the other driver in an accident has no insurance.
  • Underinsured motorist: This coverage bridges the gap if the other driver lacks sufficient insurance to cover your losses.

Here is a list of options policyholders can add to their basic auto insurance:

  • Lifetime repair guarantee: This guarantee helps you find an approved direct repair facility after an accident and guarantees the repairs will last for as long as you own your vehicle.
  • New car replacement: If your new car is totaled in the first year of ownership, new car replacement buys you a brand-new car, not merely the depreciated value.
  • Better car replacement: This replacement option gives you money for a model that’s one year newer than your totaled vehicle.
  • Rental car reimbursement: As the name suggests, this option pays the cost of a rental car when your vehicle undergoes repairs in a covered accident. If you have your vehicle repaired at a Liberty-approved repair shop and get your rental with Liberty’s help, the company will cover the entire rental costs for as long as your car is at the shop.
  • 24-hour roadside assistance: This add-on covers jumpstarts and tows when your vehicle breaks down.
  • Gap: If your leased car is totaled and the vehicle’s value is lower than the amount you still owe on your loan, gap insurance pays the remaining amount owed.
  • Original parts replacement: This add-on allows you to replace damaged vehicle parts with those from the original manufacturers.

TIP:

To personalize your auto insurance, use the online quote tool with Liberty Mutual.

What Will My Auto Insurance Rate Be?

The average cost for Liberty Mutual insurance is $1,637 annually. Liberty considers the following factors when calculating your auto insurance rate:

  • Age
  • Any safety issues related to your vehicle
  • Credit history
  • Driving record
  • Gender
  • Homeownership
  • How many miles you drive
  • Marital status
  • The cost to repair your car
  • Where you reside

Discounts

Liberty offers numerous ways for drivers to save on their auto insurance premiums.

  • Claims-free: If you have a claims-free driving history, you will save on your auto insurance premiums.
  • Early shopper: When you receive a Liberty insurance quote before your policy with another auto insurance company expires, Liberty will give you a discount.
  • Good student: If your student drivers have grades of B or higher, you could receive a discount.
  • Homeowner: Those who own homes qualify for a discount.
  • Military: Active, reserved, or retired U.S. Armed Forces military members can receive a discount.
  • Multicar: If you insure all your vehicles with Liberty, you’ll save money.
  • Multipolicy: Bundling your insurance policies with Liberty will snag you a discount. For example, combine auto and home insurance to save.
  • Online purchase: If you purchase your policy online, you’ll save money.
  • Paperless policy: Choosing to receive your documents online will earn you a discount.
  • Preferred payment: Enroll in automatic payment through your bank account to receive a discount. If you pay your annual premium in one or two payments, you’ll qualify for a discount as well.
  • RightTrack: Take advantage of Liberty’s RightTrack program, which monitors driving behavior, to get an initial discount just for participating. Many drivers also receive additional discounts of up to 30 percent off their auto insurance, depending on their driving.
  • Student-away-at-school: If your student attends school away from home (typically at least 100 miles away) and only drives a covered vehicle occasionally, you could get a discount.
  • Violation-free: If you have no driving violations on your driving record when signing with Liberty Mutual, you will see a discount on your auto policy.

Availability

Drivers can purchase Liberty’s auto insurance in all 50 states and the District of Columbia. Liberty Mutual owns Comparison Insurance Agency, which staffs local agencies that sell Liberty Mutual insurance. Comparison has more than 2,000 local agents in 180 offices. Most states have local agents available to assist with auto insurance policies. The following states have less than 10 agents:

  • Iowa
  • Louisiana
  • Mississippi
  • New Mexico
  • Rhode Island
  • Vermont
  • West Virginia

These states, along with Washington, D.C., do not have any local agents:

NOTE:

Residents of states without local agents can still purchase auto insurance from Liberty Mutual.

Liberty Customer Service

Call customer service directly at 844-629-8984 or by mail at the address below:

  • Liberty Mutual Insurance
  • 175 Berkeley St.
  • Boston, MA 02116

Mobile Apps and Online Features

Liberty’s mobile app allows users to do a variety of tasks:

  • Access ID cards.
  • Pay and manage bills.
  • File and track claims.
  • Add drivers.
  • Access and sign documents electronically.
  • Talk to Liberty via chat.
  • Call roadside assistance.

The app has a good rating with users, with 4.7 out of five stars on Android and 4.8 out of five stars on iOS.

Liberty Mutual Scores with Third-Parties

Liberty Mutual has excellent ratings from third-party reviewers and mixed ratings from customers.

  • AM Best: AM Best affirmed Liberty Mutual’s financial strength rating of A/Excellent in July 2022, the most recent rating available.1 The ratings reflect Liberty Mutual’s balance sheet strength, which AM Best assessed as very strong, as well as its adequate operating performance, favorable business profile, and appropriate enterprise risk management.
  • Better Business Bureau (BBB) rating: The BBB gave Liberty Mutual an A+ rating and has accredited the company.
  • BBB customer rating: From 946 customer ratings, Liberty Mutual received a 1.1 out of five stars. The complaints ranged from rising premiums to difficulty switching policies to accusations about Liberty Mutual not paying for covered accidents.
  • J.D. Power U.S. Auto Insurance Study 2022: Liberty Mutual averaged an 819 rating, which is about average among car insurance companies.2 The study measures customer satisfaction with the price of auto insurance.
  • National Association of Insurance Commissioners (NAIC) Complaint Index Score: Liberty Mutual received a 2.6 rating on the NAIC Complaint Index Score. That rating means the company received more complaints than average. Florida tops the list with more complaints than any other state, with Minnesota a distant second.

Company History

  • In 1912, Liberty opened its doors and offered workers’ compensation insurance in Boston, Massachusetts.
  • The company sold its first auto insurance policy in 1918.
  • In the early 1970s, Liberty expanded outside the U.S. with its first international location in the United Kingdom.
  • Liberty Mutual has grown into the sixth-largest global property and casualty insurer based on 2020 gross-written premiums.3 The company is still based in Boston, Massachusetts.

Other Insurance Liberty Provides

Liberty Mutual has a robust selection of other insurance options for policyholders:

  • Accident Insurance
  • Antique and classic car
  • ATV and off-road vehicle
  • Boat and watercraft
  • Business
  • Condo
  • Critical illness
  • Flood
  • Home
  • Identity theft
  • Landlord
  • Life
  • Mobile home
  • Motorcycle
  • Pet
  • Property
  • Recreational vehicle
  • Renters
  • Tuition
  • Umbrella

FYI:

Liberty Mutual provides much more than auto insurance coverage, with a wide range of policies.

Cancellation Policy

The process and possible fees for policy cancellation vary by state. Call Liberty Mutual’s customer service agents at 1-800-290-8711 to inquire about canceling your policy.

Frequently Asked Questions

How large is Liberty Insurance?

Liberty Mutual is the sixth-largest property and casualty insurance company in the U.S., as of 2021. That year, it had 5 percent of the property/casualty insurance market share in terms of direct premiums written, according to the National Association of Insurance Commissioners and the Insurance Information Institute. Liberty Mutual also ranked sixth for private passenger auto insurance by direct premiums written, with a 5 percent U.S. market share. For commercial auto insurance, it came in third with 4 percent.

How long does it take for Liberty Mutual to approve a claim?

The claims process with Liberty varies based on the severity of damage and the type of claim. Generally speaking, once you’ve filed a claim, a Liberty Mutual claims representative will review the incident details, then respond to you within one to two business days.

How is Liberty Mutual rated on claims?

According to the J.D. Power 2022 U.S. Auto Claims Satisfaction Study, Liberty Mutual ranked 870, slightly below the industry average of 873. The study received 8,239 responses from auto insurance customers who had settled claims within the past six months.

Does Liberty Mutual require you to pay a deductible if the accident isn’t your fault?

Yes, in most cases, if you have a collision or comprehensive claim, Liberty Mutual requires you to pay your deductible upfront, even if the claim wasn’t your fault. However, you can enroll in the Liberty Mutual Deductible Fund to receive as much as $70 annually toward your deductible.

Citations

  1. AM Best Affirms Credit Ratings of Liberty Mutual Holding Company Inc and Subsidiaries. AM Best. (2022, Jul 27).
    https://news.ambest.com/presscontent.aspx

  2. Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds. J.D. Power. (2022, Jun 13).
    https://www.jdpower.com/business/press-releases/2022-us-auto-insurance-study

  3. Company Profile. Liberty Mutual Insurance. (2023).
    https://www.libertymutualgroup.com/about-lm/investor-relations/our-company/company-profile