Liberty Mutual: High-Risk Auto Insurance?

Liberty Mutual is a well-known insurance company that has been in business for over 100 years. The company offers a wide range of insurance products, including car, home, business, and powersports vehicle insurance. Liberty Mutual is known for its competitive pricing, wide selection of coverage options, and discounts. In addition, the company has a strong financial rating from A.M. Best, indicating its ability to pay out claims. However, some of its customer service and claims ratings are below average. Overall, Liberty Mutual is a good choice for those seeking customizable and affordable insurance coverage.

Pros and cons of Liberty Mutual car insurance

Pros of Liberty Mutual car insurance:

• Wide selection of coverage options and discounts
• Better pricing than competitors in multiple categories
• Potential 30% discount by participating in its RightTrack UBI program
• A.M. Best A rating for financial strength

Cons of Liberty Mutual car insurance:

• Some states do not appear to be served by an agent
• Middling claims and customer service ratings
• Received more than the expected number of complaints for an insurer of its size

Liberty Mutual's coverage options

Liberty Mutual offers a wide range of coverage options for auto and homeowners insurance.

Auto Insurance Coverage Options

Liberty Mutual offers standard auto policies with optional add-ons depending on your state. These include:

• Accident forgiveness: Your premium won't increase after your first accident if you've had no crashes or traffic violations for five years.
• New car replacement: If your car is totalled in the first model year and first 15,000 miles, you'll be reimbursed for a new car, not just the depreciated value.
• Better car replacement: If your car is totalled at any age or mileage, you'll be reimbursed for a car one year newer with 15,000 fewer miles.
• Deductible fund: Liberty Mutual will contribute $70 to this fund each year, and you contribute $30; this amount is then used to lower your collision deductible.
• Gap insurance: If your car is totalled and you owe more on your loan or lease than its worth, gap insurance covers the difference.
• Original parts replacement: Repairs are made with original manufacturer parts when available.
• Rental car reimbursement: If your car is damaged but still drivable, Liberty Mutual will deliver a rental car to you while your car is being repaired.
• Teachers' auto insurance: This unique offering includes vandalism loss protection, personal property coverage, and collision coverage for school-owned items and vehicles.

Homeowners Insurance Coverage Options

Homeowners insurance covers your house and possessions against damage or loss from events like fire, theft, and storm damage. It also includes liability coverage for personal injuries on your property. Additional coverage options include:

• Personal property replacement cost: In the event of a covered loss, Liberty Mutual will pay the actual cash value for items at the time of loss, then up to the full amount of the cost in today's market.
• Additional living expenses/loss of rent: Covers any necessary increase in living expenses so you can maintain your standard of living.
• Inflation protection: Automatically adjusts your coverage limits when your policy renews to keep pace with inflation.
• Wind and hail damage: Covers your property for damage caused by wind and hail.

Liberty Mutual's pricing

Liberty Mutual offers a wide range of discounts and coverage options, and its pricing is often better than that of its competitors. The company provides customized car insurance plans, allowing customers to save money by only paying for what they need.

One notable feature of Liberty Mutual's pricing is its RightTrack program, which offers discounts of up to 30% based on tracked driving habits. Customers can install an app or a small tracking device in their car to monitor driving habits like acceleration, braking, distance, and time of day. The discount is based on an evaluation of safe driving during a 90-day period.

Additionally, Liberty Mutual provides optional coverage types, such as accident forgiveness and rental car reimbursement, which enhance the overall value of their insurance plans.

Overall, Liberty Mutual's pricing is competitive and offers good value for customers seeking comprehensive coverage and various discounts.

Liberty Mutual's customer service

Liberty Mutual has been in the insurance business for over 100 years. It offers insurance for cars, homes, businesses, and more. The company has a wide range of coverage options and discounts, including a 30% discount for participating in its RightTrack UBI program. Liberty Mutual's customer service is available through various channels, including:

• Online account: Customers can log in to their online accounts to view and manage their policies, make changes, access documents, and get insurance help 24/7. The online account also allows users to update their contact information, billing preferences, and payment details without having to call customer service.
• Mobile app: The Liberty Mutual mobile app provides easy access to policy information, claims management, and insurance documents. It also allows users to download their insurance ID cards.
• Phone: Customers can call Liberty Mutual's customer service line at 800-290-8711 for assistance.
• Mail: Liberty Mutual provides mailing addresses for different types of insurance, including billing, life insurance, and corporate headquarters.
• Agent locator: Customers can find an independent commercial insurance agent or broker through the Liberty Mutual website, who can provide tailored coverage advice.
• Online support team: For technical assistance, customers can contact Liberty Mutual's online support team via email.

While Liberty Mutual offers a range of customer support options, it is important to note that some of its claims and customer service ratings are below industry averages. The company ranked below average in the J.D. Power 2022 U.S. Auto Insurance Claims Satisfaction Study and received a high consumer complaint index from the National Association of Insurance Commissioners (NAIC).

Liberty Mutual vs. Progressive

Liberty Mutual and Progressive are two of the most recognisable insurance brands in the US. Both companies offer a range of coverage types and have a number of discount options available to customers. However, there are some key differences between the two providers, which are detailed below.

Cost

Progressive is generally the cheaper option for most drivers, with an average rate of $104 per month. Liberty Mutual's rates are more affordable for drivers with extremely bad credit, but Progressive is cheaper for those with a score of 800 or above. Progressive also tends to be more affordable for high-risk drivers, such as those with a DUI on their record.

Customer Satisfaction

Liberty Mutual has a higher-than-average number of customer complaints and falls below the industry average for overall customer satisfaction. Progressive, on the other hand, scores slightly better in key areas, including overall customer satisfaction and claims satisfaction.

Coverage

Both companies offer the six standard car insurance types: liability insurance, collision insurance, comprehensive insurance, medical payments coverage, personal injury protection, and underinsured/uninsured motorist coverage. They also offer a range of additional coverage options, including accident forgiveness, better car replacement insurance, gap insurance, and rental car reimbursement.

Telematics Options

Both Progressive and Liberty Mutual have telematics programs that allow customers to save money on their premiums by tracking their driving habits. Progressive's Snapshot® program records driving behaviours for 30 days, while Liberty Mutual's RightTrack® program tracks driving behaviours for 90 days.

Bundling Options

Both companies offer customers the opportunity to save money by bundling their auto insurance with other types of insurance, such as homeowners insurance.

Availability

Progressive is the third-largest car insurance provider in the US, while Liberty Mutual is the sixth-largest. Progressive is available in all 50 states, while Liberty Mutual is not available in North Dakota, South Dakota, or Wyoming.

Summary

While both companies offer good coverage options and reasonable rates, Progressive comes out on top in terms of overall coverage availability and customer satisfaction. However, Liberty Mutual may be a better option for some drivers, particularly those with extremely bad credit or young drivers who can take advantage of the company's wide range of discounts.

Frequently asked questions