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 most amusing ad features an emu bird called Limu to draw customers’ attention. Its promise is, “Liberty mutual saves you money by customizing car insurance.”
To test if this guarantee is true, we checked Liberty Mutual 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.
Liberty Mutual Review 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. 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 respectively 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.
Liberty Mutual Insurance Review Features
Even better, as you’re completing your 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: Liberty Mutual Better Car Replacement
If you total your car, you’ll get a better one when you file a claim with Liberty Mutual. 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 car 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.
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 its expenses, but the low claims handling satisfaction rating indicates that the company often chooses not to fulfill its obligations.
Types of Liberty Mutual Car Insurance Offers
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 phone number 1-888-398-8924.
Rental Car Reimbursement
If your vehicle was damaged in a covered accident, Liberty Mutual roadside assistance allows you to take it to one of it’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.
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.
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 1-800-426-9898.
Liberty Mutual Insurance Reviews – Types of Repair
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.
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 auto 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.
Liberty Mutual 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
Numerous Liberty Mutual reviews state poor customer support, hitting its lowest point in its J.D. Power rating.
In the 2020 claims satisfaction study, the company is fourth from the bottom, scoring 2 out of 5 stars.
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.
Liberty Mutual insurance 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 auto insurance reviews by industry experts, we tend to believe them more.
Liberty Mutual offers a significant number of discounts. There’s nothing groundbreaking here, but its 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 it’s customer service. This is necessary since not all Liberty Mutual discounts are available in all states, and the exact premium reduction may vary.
You can qualify for a discount just by owning a home, and it doesn’t have to be insured with Liberty Mutual. This is perfect if you’re looking to steadily switch in being fully insured by a different company.
Liberty Mutual offers a discount to active, reserved, and retired members of the US Armed Forces. Liberty Mutual 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. According to our insurance reviews, it’s one of the best companies, 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.
If your vehicle is equipped with an anti-theft system, you can save up to 10% on you overall insurance with this company.
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.
Liberty Mutual car 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.
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.
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. Many reviews on Liberty Mutual insurance note the same thing – this is among the most significant savings of this kind available.
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.
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.
Liberty Mutual Right Track Program Review
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. The company outperforms its competition here since some insurers may increase your premium if your results don’t qualify.
You can save if you choose automatic billing by linking your bank account to the Liberty Mutual system.
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 claims 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.
If you still think that Liberty Mutual may be overcharging you—a concern that has been expressed in one or two Liberty Mutual 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. Comparing it to Liberty Mutual insurance company rating, it has a better A. M. Best rating, and overall, it ranks higher in the customer service department.
Nonetheless, as we noted in Allstates’ auto insurance review, Allstate is the second from behind in J.D. Power’s 2020 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. 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.
State Farm vs Liberty Mutual
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, it’s good to note that there are regions where this company gets excellent scores in customer satisfaction. It might be a better option than State Farm in these areas, and many positive Liberty Mutual ratings confirm this.
Liberty Mutual vs. Travelers Insurance
Travelers is simply a superior insurer. It’s more affordable, has higher customer service scores, and is a financially stronger company. Unless you were offered considerably lower prices from Liberty Mutual, or there’s 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 about the Liberty Mutual refund policies, 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 to approach Liberty Mutual with a degree of caution.
Liberty Mutual Pros and Cons & 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. 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 insurance 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.
People Also Ask
Is Liberty Mutual a Good Insurance Company?
According to its online rating and customer reviews, 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. So it’s definitely worth looking into.
Nonetheless, because Liberty Mutual has such low scores in the customer service department, we cannot give this company a universal recommendation.
Is Liberty Mutual good at paying claims?
Liberty Mutual’s financial rating is good, which means it has enough funds to pay incoming insurance claims without difficulties.
However, it sometimes uses stalling tactics, which makes people think it is a bad payer. In general, Liberty Mutual responds to a demand package within ten weeks and needs two to six weeks to pay the money after reaching a settlement.
Which is better - Geico or Liberty Mutual?
While many praise the varying 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.
Is Liberty Mutual better than State Farm?
It’s difficult to say which one is generally better because it depends on your specific needs. State Farm has a better user satisfaction rating and superior financial strength.
Liberty Mutual is cheaper for people with very poor credit scores (under 579), while State Farm wins other credit categories. State Farm is also more forgiving to bad drivers and charges them less. When it comes to age groups, State Farm is cheaper in all of them.
Why is Liberty Mutual so cheap?
Liberty Mutual is the sixth-largest insurer by the number of premiums. It is cheap because it has a wide array of discounts for different user categories.
For instance, it rewards customer loyalty; you also get discounts for multiple vehicles or bundling them with home insurance. It also has one of the lowest premiums in the market for clients with bad credit ratings.
Does Liberty Mutual have a cancellation fee?
You can cancel your Liberty Mutual car insurance, but you will be charged for early cancelation. The cancelation fees and refunds depend on your state, so you should speak with your local agent to get the complete information.
Keep in mind that gaps in car insurance will cause your premium to go up, so buy another car insurance before canceling your current one.
During our Liberty Mutual reviews, we’ve found that many of the complaints were about increased prices due to the insurance gaps.