Auto Insurance

Liberty Mutual Auto Insurance Review

Liberty Mutual Auto Insurance Review
Written by amirhuxain

Liberty Mutual offers comprehensive auto insurance. In our review, we look at the features and costs of Liberty Mutual, as well as customer satisfaction data.

When you’re shopping around for car insurance, it pays to look at as many insurers as possible. One popular option is Liberty Mutual. They’re so popular, in fact, that they made our list of top car insurers of 2018.

Liberty Mutual has been around for more than a century, and they’ve served customers well in that time. If you’re considering them for your car insurance, check out our in-depth review to make sure Liberty Mutual car insurance will meet your needs.

What They Have to Offer

One of the things we like about Liberty Mutual is that they have a bunch of add-ons you can choose to tack onto your policy. Some of these options increase your monthly premium, of course. But they can also help you customize your car insurance policy so that it perfectly suits your needs.

Some of Liberty Mutual’s unique offerings include:

  • New Car Replacement: Cars depreciate quickly. So replacing a new-ish car with a brand new one can be a tough sell for your insurer. If you buy a brand new car, consider this policy add-on from Liberty Mutual. If you total your car when it’s less than a year old and has fewer than 15,000 miles, you can get money for a brand new car, rather than the actual value of the car.
  • Better Car Replacement: On the other side of the spectrum, this can be a good option if you drive an older vehicle. With this coverage, you can choose a car that’s one model year newer and that has 15,000 fewer miles than your totaled car. This is especially good news if your car was very old and high-mileage.
  • Accident Forgiveness: You can get this benefit if you’ve had no accidents or violations in the previous five years. When you have your first accident after that time period, you won’t see an increase in your insurance premiums. This can mean serious savings after a fender bender!
  • Deductible Fund: This basically helps you save up for your deductible. You add a bit of extra to your monthly premium. Liberty Mutual will automatically put $100 in savings for your deductible fund. Then every year, they’ll add $100 more dollars to the account. With a $500 deductible, you’d pay nothing out of pocket on an accident after five years.
  • Medical Payments: Dealing with medical payments related to insurance can take time. That’s because the insurance companies have to figure out who is at fault in the accident. This rider lets Liberty Mutual pay your medical payments right away, regardless of who is at fault in the accident. It also covers family members who live with you if they’re injured as pedestrians or in someone else’s vehicle.
  • Rental Car Reimbursement: As I said above, hashing out payments and repairs after an accident can take time. But you still need to get to work and around town in that time. With this coverage, Liberty Mutual will pay for your rental car in the event of a covered collision or total loss. Restrictions do apply, so be sure you understand this policy before you choose it.

Besides these riders, of course, Liberty Mutual offers flexible insurance policies, including varying levels of coverage. Their website provides a map of state minimum coverages. That way you can be sure you’re at least getting your state’s minimum level of coverage.

What Others Have to Say

It’s important when choosing an insurance company to check out others’ reviews of the company. To be honest, most car insurers offer about the same products. What sets them apart from one another is really the less tangible things, including customer service and speed of processing claims.

You can look around online for personal reviews of car insurance companies like this one. Just be aware that you’ll often hear from only the very best and the very worst experiences. That’s why we like to rely on third-party rating systems like J.D. Power and Company’s ratings. Luckily, J.D. Power has rated Liberty Mutual in both its 2017 Insurance Shopping Study and its 2017 U.S. Auto Claims Satisfaction Study.

In the first, Liberty Mutual scores four out of five points in Overall Satisfaction. In fact, it scores four for most categories. Including Policy Offerings and Pricing. It scores a bit lower–a three–for the Local Agent and Insurer Website categories.

Liberty Mutual fares less well on the claims satisfaction side. It gets a two out of five points for Overall Satisfaction. J.D. Power assigned the company two points in the following categories: Claims Servicing, Estimation Process, and Settlement. It gets three points in these categories: First Notice of Loss, Repair Process, and Rental Experience.

Although this doesn’t look great on the claims side, this is actually about average. Considering auto insurance claims are very stressful on the consumer, companies have to have outstanding customer service to really stand out here. But this is something to keep in mind if you’re considering Liberty Mutual.

What About Cost?

Of course, for many of us, car insurance comes down primarily to cost. Luckily, Liberty Mutual offers a calculator on its website. So I ran the numbers for two scenarios. In one, I’m testing a 20-something male who drives a small car. In the other, I’m testing a 40-something married female who drives a minivan.

Note: I had to enter an address to get quotes from Liberty Mutual. So I used my own address near downtown Indianapolis. Remember that car insurance pricing can vary dramatically based on ZIP Code.

Here’s where the quotes came out for each:

Car Insurance Quote

  • Zip Code: 46201
  • Age: 23
  • Gender: Male
  • Marital Status: Unmarried
  • Vehicle: 2014 Toyota Corolla with an audible alarm, financed
  • Estimated Annual Mileage: 10,001 to 12,500
  • Residential Status: Renter
  • Driving Record: No accidents or violations in past five years
  • Level of Education: 4-year college

As you can see below, Liberty Mutual gives three different policy options in its quote, which is nice. The middle quote is for $50,000/$100,000 bodily injury liability, $50,000 property damage liability, $5,000 medical payments, and $50,000/$100,000 uninsured motorist. It includes a $500 deductible for comprehensive coverage, and a $500 deductible for collision coverage.

The nice thing about this quote engine is that you can customize your quote as you go. For instance, you can see what changing deductibles or adding additional riders will do for your quote. On the far right, you’ll see the customized quote. Just for fun, I upped both deductibles to $1,000 and added the Better Car Replacement option.

Minivan Insurance Quote

  • Zip Code: 46201
  • Age: 41
  • Gender: Female
  • Marital Status: Married
  • Vehicle: 2014 Toyota Sienna L with an audible alarm and adaptive cruise control, financed
  • Estimated Annual Mileage: 10,001 to 12,500
  • Residential Status: Owner of single-family home
  • Driving Record: No accidents or violations in past five years
  • Level of Education: 4-year college

The insurance for this driver was much cheaper. That’s not a huge surprise, given the individual in question. A 40-year-old married woman could expect much cheaper insurance than a 20-something single guy. But I’ll admit I was surprised at how big the difference was, given the mom is driving a larger, heavier, more expensive minivan.

For the customize quote here, I increased both deductibles on the “More Protection” plan to $750 and added the Better Car Replacement rider.

The Bottom Line on Costs

I think the quote for the 40-year-old woman here is very competitive. But if I were the 20-something Corolla driver, I might shop around a bit more. As with all insurance companies, Liberty Mutual rates risk according to its own formula. There may be other companies who wouldn’t consider our hypothetical bachelor to be quite so risky.

Overall, though, the quote tool is very helpful. As you can see, it’s quite comprehensive. I like this because it’s less likely that I’ll have to spend loads of time on the phone with someone. Often times, car insurers collect the bare minimum of information online. They give you an estimated quote. Then you have to spend half an hour on the phone giving them the rest of your details before you can figure out what you’ll actually pay.

I personally hate talking on the phone. So Liberty Mutual’s more robust online quote system is very attractive.

It’s also nice that the system lets you add home insurance to the quote or see what discounts and features they’ve already added to your car insurance quote.

Other Important Information

I can’t say enough in car insurance reviews how important it is to opt for a company with a strong financial rating. If your car insurer goes out of business when you’re in the middle of a claim, you could be up the literal creek without a paddle. This means lots of money wasted for you!

So I’m happy to say that Liberty Mutual has an A rating with A.M. Best and Standard and Poor’s.

They also have an intuitive website where you can manage your insurance policy, submit a claim, or talk with customer service representatives via email. You can also get the phone number to talk with customer service people over the phone, if that’s more your speed.

Are They the Car Insurance Company for You?

Liberty Mutual could give you a very competitive quote, depending on your circumstances. I’d say they’re worth considering, especially if price is one of your main factors. But you may want to check with some people who have worked with local Liberty Mutual agents in your area. You might find a gem. But, then again, they don’t get great ratings for their local agents. The key is to weigh all these factors, get a quote, and see if Liberty Mutual is the best insurer for your needs.

Liberty Mutual Insurance




Liberty Mutual Insurance

Pros

  • Competitive Quote Engine
  • Offers Discounts for Bundled Insurance
  • Easy Breezy Mobile App
  • Over 100 Years in Business

Cons

  • Poor Rating on Claim Satisfaction

Topics: Auto Insurance

About the author

amirhuxain

Leave a Comment