Liberty Mutual Auto Insurance: Is It Worth The Hype?

Liberty Mutual is one of the largest insurance companies in the US, offering a range of insurance products, including auto, home, business, antique and classic car, and recreational vehicle insurance. The company has been in business since 1912 and is headquartered in Boston.

Liberty Mutual auto insurance is available in 45 states and Washington, D.C. The company offers a variety of standard and optional coverage options, including liability, collision, comprehensive, uninsured motorist, personal injury protection, and more. Liberty Mutual also provides a range of discounts, including good student, military, multi-car, and accident-free driving discounts.

While Liberty Mutual offers competitive pricing and a wide range of coverage options, the company has received mixed reviews when it comes to customer service and claims handling. Some customers have reported issues with unexpected rate increases, slow communication, and difficulties with the claims process. However, others have praised the company for its efficient claims handling and responsive service.

Overall, Liberty Mutual is a good choice for drivers looking for a range of coverage options and discounts, but it is important to be aware of the potential for issues with customer service and claims.

Liberty Mutual's customer service

On the other hand, some customers have praised Liberty Mutual for its normally courteous customer service agents and efficient claims handling. The company also has an A rating for financial strength from A.M. Best, indicating that it is financially stable and able to pay out claims.

In terms of digital customer experience, Liberty Mutual offers a user-friendly online platform and a highly-rated mobile app that allows customers to access ID cards, request roadside assistance, file and track claims, and manage their policies. However, the company has received lower-than-average ratings in J.D. Power's studies for auto claims satisfaction and customer satisfaction.

Liberty Mutual's coverage options

Liberty Mutual offers a range of coverage options for its auto insurance policyholders. The company provides six main types of car insurance coverage, including some that are required by the state and others that are optional but recommended for extra protection.

The basic coverage offered by Liberty Mutual includes bodily injury liability, property damage liability, and uninsured motorist coverage. This meets most auto insurance requirements, but additional coverages can be added to the policy for more comprehensive protection. Some of the add-on coverage options available include:

24-hour roadside assistance

Rental car reimbursement

Accident forgiveness

Lifetime repair guarantee

Better car replacement

Teachers' insurance

In addition to these options, Liberty Mutual also offers what it calls “full coverage” car insurance. This typically refers to insurance that includes the state's minimum requirements, along with collision and comprehensive insurance, which protect the policyholder's vehicle.

For those seeking even more comprehensive coverage, Liberty Mutual offers extra coverage options such as rental car reimbursement coverage, new car replacement coverage, better car replacement, accident forgiveness, original parts replacement coverage, and protection for teachers and their teaching supplies. The company also provides coverage for specialty vehicles, including ATVs, off-road vehicles, recreational vehicles (RVs), and antique/classic cars.

Liberty Mutual allows policyholders to customize their coverage based on their individual needs and offers a range of discounts to help make its policies more affordable.

Liberty Mutual's discounts

Liberty Mutual offers a wide range of discounts to its auto insurance customers, which can save them up to 30% on their car insurance. The company categorises its discounts into four main groups: safe driver discounts, vehicle safety feature discounts, customer detail discounts, and customer loyalty discounts.

Safe Driver Discounts

Safe drivers can benefit from the following discounts:

• Accident-Free Discount: Customers who go at least five years without an accident are eligible for this discount.
• Violation-Free Discount: Drivers who avoid violations such as speeding tickets, parking citations, or DUIs for five consecutive years can avail of this discount.
• RightTrack Discount: Liberty Mutual offers an initial discount to customers who sign up for its safe driving program, with a final discount of up to 30% for safe driving behaviour.

Vehicle Safety Feature Discounts

Vehicle safety features can also help reduce insurance costs:

• Anti-Theft Device Discount: Liberty Mutual offers a discount if a covered car is equipped with anti-theft devices or technology, such as passive alarms or LoJack systems.
• Advanced Safety Features Discount: Cars with advanced safety features like anti-lock brakes, adaptive headlights, or electronic stability controls are eligible for a discount.
• Alternative Energy Discount: Hybrid or electric vehicles covered under a Liberty Mutual insurance policy can avail of this discount.

Customer Detail Discounts

Depending on the customer's personal details, they may be eligible for the following discounts:

• Homeowner Discount: Homeowners can get a discount on their car insurance, even if their home is not insured through Liberty Mutual.
• Military Discount: Liberty Mutual offers a discount if one of the drivers listed on the policy is an active, retired, or reserve member of the US Armed Forces.
• Early Shopper Discount: Customers who sign up for a new policy before their current policy expires can benefit from this discount.
• Good Student Discount: If a student driver listed on the policy has a GPA of 3.0 or higher, Liberty Mutual offers a discount.
• Student Away-at-School Discount: Liberty Mutual offers a discount if a driver listed on the policy is a student who doesn't take a car with them to school, typically located 100+ miles from home.

Customer Loyalty Discounts

Long-term customers can benefit from the following discounts:

• Multi-Car Discount: Customers with multiple vehicles listed on their policy are eligible for a discount.
• Multi-Policy Discount: Customers who bundle other policies, such as home, life, or umbrella coverage, with their auto insurance receive a discount.
• Preferred Payment Discount: Enrolling in automatic payments from a bank account can result in a discount.
• Pay-in-Full Discount: Paying the entire policy in one or two payments can lead to a discount.
• Online Purchase Discount: Buying a policy online can result in a 12% discount.
• Paperless Policy Discount: Customers who go paperless by signing up for electronic communication can avail of this discount.

Liberty Mutual's financial strength

Liberty Mutual Insurance Group is a financially strong company with a global presence. As of 31 December 2023, the company had $162.5 billion in consolidated assets and $49.4 billion in consolidated revenue. Liberty Mutual's financial strength is reflected in its high credit ratings from reputable agencies.

The company's financial strength ratings indicate its ability to meet its obligations to policyholders. Liberty Mutual has received an A rating, which means it has an excellent ability to meet its ongoing commitments. This rating suggests that Liberty Mutual has strong financial security characteristics and is less likely to be affected by adverse business conditions compared to insurers with lower ratings.

Liberty Mutual Insurance Company, an entity within the Liberty Mutual Insurance Group, also boasts impressive financial ratings. It has received an A rating from Standard & Poor's, an A (Excellent) rating from A.M. Best, and an A2 (Good) rating from Moody's. These ratings further reinforce Liberty Mutual's financial stability and ability to fulfil its financial obligations.

In addition to its financial strength, Liberty Mutual offers a range of insurance products, including auto, home, renters, motorcycle, and life insurance. The company has a broad range of auto policy coverage options and significant discounts, making it a competitive choice for those seeking affordable insurance.

While Liberty Mutual's financial strength is commendable, it's important to consider other factors when evaluating the company's overall performance and customer satisfaction. Some customers have reported issues with claims handling, unexpected price increases, and poor customer service experiences. However, Liberty Mutual's financial stability provides a solid foundation for its insurance offerings.

Liberty Mutual's claims satisfaction

Liberty Mutual's NAIC (National Association of Insurance Commissioners) scores for auto insurance have shown a downward trend from 3.00 in 2021 to 1.97 in 2023. Although the scores remain above the industry average, this trend suggests improvement in addressing customer complaints.

Liberty Mutual's customer reviews on its claims handling are mixed. Some customers describe frustrating experiences with claims, highlighting inconsistencies in customer service and challenges in getting adequate compensation. Others report satisfactory dealings, noting efficient claims handling and responsive service.

Overall, while Liberty Mutual's claims satisfaction ratings are not the highest, they are generally in line with industry averages, and the company appears to be making improvements in addressing customer complaints.

Frequently asked questions