Liberty Mutual Auto Insurance

by Nikola Djurkovic
Liberty Mutual Car Insurance Review Cover Image

Liberty Mutual is the fourth largest commercial insurer in the US, although it’s not as prominent in the car insurance market. Despite using the Statue of Liberty as its symbol, the company is Boston-based. Its most recent, and admittedly amusing, ad features an emu bird called Limu to draw customers’ attention. Their promise is, “Liberty mutual saves you money by customizing car insurance.”

To test if this guarantee is true, we checked Liberty Mutual insurance reviews by customers and industry experts alike. Furthermore, we requested quotes to verify prices, and we studied the leading customer satisfaction rankings. Read on to see if Liberty Mutual might be the perfect car insurance company for you.

Product Overview

Liberty Mutual is a widely available auto insurer with an extensive network of agents. Its website also enables you to handle the majority of your insurance needs online, using your Liberty Mutual login credentials. These include getting a quote, paying bills, filing and tracking a claim, and much more.

Liberty Mutual also offers a useful mobile app that scores respectably on Google Play and in the App Store. Among many things, you can use it to download proof of insurance, request roadside assistance, or even upload a photo and receive an Express Estimate on the cost of your car repair.

Features

Even better, as you’re completing your liberty mutual car insurance quote, you’ll find a selection of many useful optional coverages and discounts.

One such feature is the Liberty Mutual Deductible Fund. When you enter this program, you lower your collision deductible by $100 annually by building a fund. You contribute $30, while Liberty Mutual provides $70. This money stays in the fund for as long as you’re a Liberty Mutual customer.

As useful as this feature is, we like the next one even more.

Signature Feature: Better Car Replacement

If you total your car, Liberty Mutual claims it will get you a better one. To be precise, you will get money for a replacement car that fulfills the following requirements:

  • It’s one model year newer than the totaled vehicle.
  • It has 15,000 fewer miles on the odometer than the totaled vehicle.

This way, you won’t have to worry about having to drive a subpar vehicle after an accident.  This is an optional coverage that you can add to your Liberty Mutual insurance quote for an extra fee on your premium. Note that this coverage is available only for a car that you own, not one that you lease.

Financial Strength

It’s essential to take financial strength into account when choosing an auto insurer. If a company isn’t financially surefooted, an economic crisis or a major natural disaster can bankrupt it. Even if that never happens, an insurer that’s less financially stable is more likely to find excuses when the time to pay any claims arrives.

When it comes to Liberty Mutual, auto insurance reviews note that the company is not as strong as the competition. It’s A. M. Best rating is “A” or “Excellent.” In comparison, State Farm and Geico have an “A++,” while Allstate has an “A+.” Nonetheless, Liberty Mutual occupies the 68th position in the 2018 Fortune 500 list, which confirms that the company knows how to make a profit.

Overall, Liberty Mutual surely has the means to pay their expenses, but the low claims handling satisfaction rating indicates that the company often chooses not to fulfill its obligations.

Types of Insurances Offered

Liberty Mutual offers all six types of standard car insurance. These include liability, collision, comprehensive, MedPay, PIP, and uninsured/underinsured motorist coverage. In addition to these, Liberty Mutual offers a number of common optional coverages. Keep in mind that not all options are available in all US states. To verify, you can always call the Liberty Mutual phone number, which is 1-888-398-8924.

Rental Car Reimbursement

If your vehicle was damaged in a covered accident, you can take it to one of Liberty Mutual’s approved repair facilities and count on Liberty Mutual to pay the expenses of a rental car up to a daily limit.

The company has a partnership with Enterprise Rent-A-Car, which allows for discounted rates and direct billing. However, you can choose another rental car provider if you prefer.

Accident Forgiveness

This is additional coverage that you can select when getting your liberty mutual quote. If you do so, your premium won’t increase after your first at-fault accident. It’s required that you’ve been accident and violation-free for the past five years.

Roadside Assistance

This is an inexpensive add-on to your car insurance policy. If you choose this coverage, you will have 24/7 access to locksmith services, towing, battery jumpstart, fuel and oil delivery, flat tire replacement, and more. You can select two limits, $50 or $100. They cost $2 and $3 monthly. Whenever you need roadside assistance you can call the Liberty Mutual phone number.

Car Repair Insurance

This is a standard feature with every Liberty Mutual car policy. After a covered accident, the company will arrange your repairs in one of its 2,000 Guaranteed Repair Network facilities. On top of that, Liberty Mutual guarantees the quality of the repairs for as long as you own your vehicle.

GAP Insurance

If you recently got a loan and have totaled your car, this coverage can help. GAP insurance is an optional protection plan that reimburses the difference between the actual cash value of your vehicle and the amount that’s left on your loan.

Original Parts Replacement

If you choose this coverage on your liberty mutual car insurance policy, the company will use only the highest quality original parts in the repairs. If manufacturer parts are unavailable, comparable or reconditioned parts will be installed.

New Car Replacement

This optional coverage is similar to Better Car Replacement. The only difference is that you’re getting a vehicle that’s the same model as the totaled one. It’s basically a brand new car since this coverage is available only for vehicles that are one year old and have less than 15,000 miles.

Customer Service

NAIC Ratio and BBB Rating

This is the department where Liberty Mutual really disappoints. For starters, its NAIC ratio is 1.05 which isn’t ideal for a company of its size. On the Better Business Bureau’s website, the situation is a little brighter, reflected by its “A-” score. Nonetheless, there are almost 300 reviews there, with an average rating of 1.2 stars out of 5.

J.D. Power Rating

Liberty Mutual customer service hits its lowest point in its J.D. Power rating. In the 2018 claims satisfaction study, the company is fourth from the bottom, scoring 2 out of 5 stars. Ouch. In a similar study on insurance shopping satisfaction, the score is slightly better, 3 stars out of 5. On the regional level, the situation is not bright, either. Liberty Mutual is near the bottom in most US regions. The Central, Florida, Mid-Atlantic, Southeast, and Texas Regions are the places where Liberty Mutual’s ratings are strikingly poor.

Customer Reviews

Liberty Mutual insurance claims reviews on websites like Yelp and CreditKarma are not significantly better either. For instance, the company has 1.2 stars on Yelp, with a lot of customer complaints about low settlements and unresponsive company representatives.

We always take these reviews with a grain of salt, because an angry customer is more likely to leave a review than a satisfied one. However, in the case of Liberty Mutual, because there’s evidence of low-quality customer service in Liberty Mutual reviews by industry experts, we tend to believe them more.

Discounts

Liberty Mutual offers a significant number of discounts. There’s nothing groundbreaking here, but their sheer number will keep the majority of customers satisfied. Nonetheless, make sure to check the details before buying your policy. You can do that by contacting a local agent or Liberty Mutual customer service. This is necessary since not all discounts are available in all states, and the exact premium reduction may vary.

Homeowners

You can qualify for a discount just by owning a home, and it doesn’t have to be insured with Liberty Mutual.

Military Discount

Liberty Mutual offers a discount to active, reserved, and retired members of the US Armed Forces. Liberty Mutual insurance reviews note that this is not the only way that the company pays respect to the military. Not long ago, it donated an undisclosed sum to the Wounded Warrior Project.

Still, if you are an army member, get a quote from USAA too. It’s one of the best companies according to our insurance reviews, excelling in all departments while still being quite affordable.

Advanced Safety Features Discount

If your car has anti-lock brakes, electronic stability control, or even adaptive headlights, you can get a discount.

Good Student Discount

If you attend an accredited academic institution, and your GPA is 3.0 or higher, you’re bound to get a discount on your Liberty Mutual car insurance.

Anti-Theft Discount

If your vehicle is equipped with an anti-theft system, you can save up to 10%.

Alternative Energy Discount

It’s always positive to see a company that rewards those who care about the environment. If you are a Liberty Mutual customer, you’ll get a discount if your vehicle is electric or hybrid.

Violation Free

Liberty Mutual auto insurance reviews will remind you that this discount is not the same as Accident Forgiveness. If your driving history is pristine when you apply for car insurance, you will qualify for this premium reduction.

Student Away-at-School

If you have a teen or young adult on a policy who studies away at school and seldom drives the car, you can get a discount.

Multi-Policy/Multi-Car

Insuring multiple vehicles or getting various policies through Liberty Mutual will result in a lower car insurance premium.

Early Shopper Discount

The car insurance market is highly competitive. That’s why big companies will offer substantial discounts if you purchase their insurance before your current policy expires. With Liberty Mutual, you can save as much as 45% by switching your insurer. Liberty Mutual insurance reviews note this is among the most significant savings of this kind available.

Online Purchase

Processing and issuing a new policy online requires fewer staff hours compared to a regular one. That’s why you can get a discount if you select this method.

Pay-in-Full

If you choose to pay the entire premium in one or two payments, you’ll pay less.

Paperless Policy Discount

As Liberty Mutual highlights, this is a win-win situation. Both your wallet and the environment benefit from the choice to handle your entire policy online.

RightTrack Program

This is a program where Liberty Mutual tracks how safely you drive using a mobile app. You will receive a discount just by enrolling. Furthermore, if your results are good, you can get up to 30% off your premium. Liberty Mutual car insurance reviews highlight how the company outperforms the competition here, since some insurers may increase your premium if your results don’t qualify.

Preferred Payment

You can save if you choose automatic billing by linking your bank account to the Liberty Mutual system.

Accident Free

If you drive safely for an extended period of time, Liberty Mutual will reward you with a premium reduction.

About Insurance Rates

A Liberty Mutual auto insurance rate comparison indicates that its prices are only slightly above the average. That’s mainly because the company is quite expensive for younger drivers. On the other hand, middle-aged and senior customers are treated to entirely reasonable prices. Check the table below to see how much Liberty Mutual charges for full coverage compared to its competitors.

Liberty Mutual Auto Insurance Prices Compared to Other Major Car Insurance CompaniesIf you still think that Liberty Mutual may be overcharging you—a concern that has been expressed in one or two Liberty Mutual auto insurance reviews—we have great news for you. There are some quite affordable and highly rated companies on the market. Amica Mutual is leading the pack by offering reasonable prices and top-notch customer service. And if you want dirt-cheap car insurance, take a look at Geico and Progressive.

Liberty Mutual Compared with Its Top Competitors

Liberty Mutual vs. Allstate

Allstate is a slightly more affordable company, especially for younger and older drivers. On top of that, it has a better A. M. Best rating, and overall, it ranks higher in the customer service department.

Nonetheless, as we noted in our review, Allstate is the second from behind in J.D. Power’s 2018 Insurance Shopping Study. Meanwhile, Liberty Mutual is the seventh from the top on that list.

However, Allstate seems like a better choice than Liberty Mutual car insurance. It’s cheaper and a more reliable company, plus it offers the Claims Satisfaction Guarantee. You’ll get your money back if you aren’t happy with the way Allstate handled your claim.

Liberty Mutual vs. State Farm

State Farm is a more expensive option, costing $25 more monthly on average. The difference is particularly striking for middle-aged drivers. Nonetheless, State Farms holds two crucial advantages over Liberty Mutual. It has slightly better customer service ratings, and it’s a financially stronger company.

However, as Liberty Mutual auto insurance reviews note, there are regions where this company gets excellent scores in customer satisfaction. It might be a better option than State Farm in these areas.

Liberty Mutual vs. Travelers Insurance

Travelers is simply a superior insurer. It’s more affordable, it has higher customer service scores, and it’s a financially stronger company. Unless you were offered considerably lower prices from Liberty Mutual, or there’s an optional coverage that you can’t live without, Travelers should be your pick.

Our Expert Verdict

Liberty Mutual has a slick website and a well-rated mobile app, together with a lot of optional coverages and discounts. Furthermore, according to our study and the Liberty Mutual car insurance reviews we checked, its prices are only slightly below the average.

Nonetheless, it’s hard for us to recommend a company that scores so poorly in customer service. Liberty Mutual is fourth from the bottom in J.D. Power’s 2018 claims satisfaction study, and its NAIC ratio is 1.05. Those are all results below the industry average. That’s why we advise customers approach Liberty Mutual with a degree of caution.

Best Alternatives

If you want more affordable car insurance or higher quality customer service, there are other companies you should check. Amica Mutual comes to mind first since it offers lower prices and premium customer satisfaction according to the best auto insurance reviews. It doesn’t have an app or a website as polished as Liberty Mutual’s, but that’s a small price to pay for the quality it delivers.

If you want more choice, Erie and Auto-owners are other affordable companies that excel in customer service. And if you want dirt-cheap car insurance, Progressive, Geico, and Mercury should be your go-to options.

Furthermore, if you are military personnel or a close family member, USAA is a no brainer. If it weren’t for its restricted availability, we would rank it as the best US insurance company.

Frequently Asked Questions

1. Is Liberty Mutual good insurance for cars?

Liberty Mutual insurance reviews note that the company has many things going for it. It has a sleek website and several innovative coverages and services. Furthermore, it’s premiums are reasonable for all but young drivers.

Nonetheless, because Liberty Mutual has such low scores in the customer service department, we cannot give this company a universal recommendation.

2. Does Liberty Mutual have a grace period?

Yes, you can count on Liberty Mutual car insurance to offer you a 10-day grace period to renew your policy.

3. Does Liberty Mutual have homeowners’ insurance?

Yes, the company offers this coverage. You can even get two kinds of discounts if you’re a homeowner: the first one just by owning a home and the second one for purchasing both homeowners and car insurance from Liberty Mutual. And according to the reviews on Liberty Mutual insurance, its homeowners’ insurance is well rated.

4. Does Liberty Mutual have roadside assistance?

Liberty Mutual offers roadside assistance as an add-on to your regular policy. You can select this coverage when getting a quote. If you do, you’ll receive help with battery replacement, fuel and oil delivery, towing, and locksmith services.

5. How do you receive Liberty Mutual discounts?

It’s quite simple. Check the discounts you qualify for, and select them when filling your quote. If there’s no such option, call your insurance agent or Liberty Mutual customer service number and tell them about the discounts you want to get. In some instances, as with the Good Student discount, you may need to provide supplementary documentation to obtain a premium reduction.

6. Can I cancel Liberty Mutual insurance online?

We looked for details on Liberty Mutual’s website and found no such option. The company strongly advises that you call their customer service to start the cancellation process.

7. What is Liberty Mutual Insurance’s A. M. Best rating?

The Liberty Mutual insurance company rating from A. M. Best is “A” or excellent. This is not the best result possible—companies like Geico and State Farm score “A++.” Nonetheless, it’s still good enough that an average customer has nothing to worry about.

Despite that, Liberty Mutual’s low claims satisfaction rating indicates that the company is overly cautious about paying its customers accordingly.

8. Liberty Mutual or Geico, which is better?

While Liberty Mutual insurance reviews praise the many options this insurer offers, we think Geico is a clear winner. Its product range might be less extensive, but Geico trumps Liberty Mutual when it comes to affordable rates and reliable customer service. These are the two most important factors when choosing car insurance.

In addition, Geico’s financial strength is second to none. After all, it’s a subsidiary of Warren Buffet’s Berkshire Hathaway.

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