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Liberty Mutual auto insurance may have sparked your interest with its funny commercials. But we wanted to see how the company’s car coverage stacks up against the best auto insurance companies in the country.
Our insurance experts took an in-depth look at Liberty Mutual to get a clearer picture. We examined the provider’s coverage options, costs, industry ratings, and customer reviews. Use our findings in the following article to decide if Liberty Mutual is the right auto insurance provider for you.
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About Liberty Mutual Auto Insurance
Founded in 1912, the Liberty Mutual Insurance Company is one of the most well-established insurance providers in the nation. The Boston, Massachusetts-based company is now the sixth-largest insurer in the country, offering coverage in all 50 states and Washington, D.C.
According to data from the National Association of Insurance Commissioners (NAIC), Liberty Mutual wrote more than $12.7 billion in auto insurance claims in 2021. That number accounts for around a 4.9% share of the overall auto market.
Liberty Mutual Insurance Cost
Our review team requested a quote got a quote or a 26-year-old driver who owns a 2018 Honda Accord and drives 12,500 miles per year. Liberty Mutual quoted us $2,580 per year—$215 per month—for a full coverage policy.
This quote was substantially higher than the national average of $1,730 per year, but there are a few things to consider. The national average is based on a profile of a 35-year-old driver with good credit and a clean record. Our quote was for a younger driver, whose age group typically gets charged much higher rates. In addition, the quote we received did not factor in discounts.
Like many insurers, Liberty Mutual offers free car insurance quotes. You can get a quote online quickly and easily to get a more accurate idea of how the company’s costs compare to other providers.
Liberty Mutual Car Insurance Cost Factors
Your own premium will most likely be very different from what we were quoted. That’s because Liberty Mutual and other car insurance companies generate individual rates for drivers based on a number of factors. These include:
- Coverage options: The cheapest insurance will usually be a policy that only satisfies your state minimum requirements. But you can purchase additional coverage to help insulate you from financial risk.
- Coverage limits: The higher you set your coverage limits, the more you will pay for your premiums.
- Driving record: Your driving history is a strong factor in the cost of your premiums. Any recent at-fault accidents or moving violations will mean much higher premiums.
- Credit score: Insurance companies typically charge higher rates to drivers with lower credit scores when possible. Some states, however, have made it illegal to use credit scores as a factor in your premiums.
- Age: Young drivers and teen drivers especially pay higher rates for car insurance coverage than middle-aged drivers. Seniors also usually pay more for their premiums.
- Location: Different states have different average rates, but rates vary within those states between ZIP codes as well. That’s because drivers in cities are more at risk for theft, vandalism, and car accidents than drivers in rural areas.
- Vehicle: Your car’s make, model, age, and mileage all factor into the cost of car insurance.
Liberty Mutual Auto Insurance Discounts
While our Liberty Mutual auto insurance review found that the company’s rates aren’t as affordable as some of the other top providers, the company offers a number of discounts that can help make coverage more affordable. Here are some of the most popular ones:
- Homeowner discount: Liberty Mutual offers policy discounts to people who own their homes.
- Military discount: Active duty, reserved, and retired military members can get a discount on car insurance with Liberty Mutual.
- Early shopper discount: You can get up to 45 percent off your car insurance policy by buying a new policy with Liberty Mutual before your current policy expires.
- Advanced safety features discount: Safety equipment installed on your vehicle such as anti-lock brakes, electronic stability control, or adaptive headlights can earn you a discount.
- Anti-theft device discount: Car alarms and other anti-theft features can also net you a discount on your premiums.
- Accident-free discount: Liberty Mutual offers a discount to policyholders who successfully stay claims-free for a specified period of time.
- Violation-free discount: You can also get a discount by not getting any speeding tickets or moving violations.
- Multi-policy discount: Get a discount for bundling your car insurance with other insurance products such as your life or home insurance from Liberty Mutual.
- Multi-car discount: You can also get an across-the-board discount when you insure multiple vehicles on the same policy.
- Preferred payment discount: Signing up for automatic payments can get you another discount on your premiums.
- Pay in full discount: If you pay your entire premium upfront rather than in monthly payments, you’ll save some money with Liberty Mutual.
- Online purchase discount: When you request a free car insurance quote from the Liberty Mutual website and then buy a policy, you’ll get a discount on that policy.
- Paperless policy: Liberty Mutual rewards policyholders for cutting out paper statements and bills and switching them to online-only.
Liberty Mutual Insurance Discounts for Young Drivers
Young drivers face some of the highest premiums of any category of driver. However, Liberty Mutual offers several discounts for families with teen drivers to help make coverage more affordable.
These discounts are why Liberty Mutual earned the award for Best for New Drivers in our latest study. They include:
- Good Student Discount: Teens with a B average or better can get an additional discount.
- Away at School: Get additional savings if your kids are in college but only use their car when they return home.
- Alumni and Professional Affiliations: Get 10 percent off your policy if you belong to one of more than 14,000 employers, alumni associations, and professional associations.
In addition to discounts, Liberty Mutual helps parents have meaningful conversations about driver safety with its Teen Driving Conversation Guide and its Master This coaching instructions.
Liberty Mutual RightTrack
Liberty Mutual now offers a telematics-based insurance program called RightTrack. This program uses an app on your mobile phone to monitor driving habits, such as how hard you brake or accelerate, how fast you drive, and even what times of day you tend to drive.
Consistently practicing safe driving habits can bring your rates down. According to Liberty Mutual, drivers can save as much as 30% on their premiums with RightTrack. However, your rates can also go up if you practice habits that Liberty Mutual deems unsafe. Be sure to honestly evaluate your own driving habits and whether or not you’re likely to save before joining the program.
Liberty Mutual Auto Insurance Coverage
Liberty Mutual offers standard car insurance policies, as well as a long list of add-on coverage. Drivers can combine these coverages to build a policy that fits their needs and their budgets.
Standard Auto Insurance Coverage
Liberty Mutual offers the same standard coverages as you’d find with most other insurer. They include:
- Property damage liability insurance: Covers damages to other parties’ vehicles and personal property resulting from an accident for which you are found at fault.
- Bodily injury liability insurance: Covers medical bills and other injury-related expenses resulting from an accident you’re found at fault for.
- Collision coverage: Covers damages to your vehicle and property regardless of who caused the accident.
- Comprehensive coverage: Covers damages to your vehicle from sources other than an accident, such as vandalism, theft, arson, floods, and hail.
- Personal injury protection (PIP): Covers you and your party’s medical expenses, lost wages, and other injury-related expenses resulting from a covered accident, no matter who is at fault.
- Medical payments (MedPay): Covers you and your party’s medical expenses resulting from an accident, regardless of who caused it.
Liberty Mutual Additional Coverage Options
Liberty Mutual offers many common coverage plans – some of which we have not seen in our research of other auto insurance companies. We like that Liberty Mutual offers optional coverage plans you don’t see every day, such as teacher-specific auto insurance and coverage for those driving to Mexico.
When you purchase Liberty Mutual auto insurance, you can also add the following insurance options to your plan:
- Rental car reimbursement: Covers rental car costs while yours is in the shop after a covered accident. If you use a Liberty Mutual preferred facility and let them pick the rental car, you can expect a full reimbursement.
- Loan/lease gap coverage: Covers the difference between your vehicle’s assessed value and the amount you owe on a loan if it is totaled.
- Towing and labor coverage: Covers roadside assistance services like flat tires, dead batteries, towing, key lock-outs, and fuel delivery.
- Original parts replacement: Covers and replaces parts with original equipment manufacturer (OEM) parts or parts that meet the highest quality standards. Some state laws may prohibit this type of insurance.
- Teacher’s car insurance: Collision and vandalism coverage with a $0 deductible for events that happen on school grounds. Teachers can receive up to $2,500 for teaching supplies or school-owned property that’s damaged or stolen from your vehicle.
- Lifetime repair guarantee: Covers repairs for the lifetime of your vehicle if you use one of Liberty Mutual’s 2,000 Guaranteed Repair network facilities.
- New car replacement: Covers the full replacement cost of a car less than one year old or that has less than 1,500 miles. The vehicle must not be leased.
- Better car replacement: Covers the cost of replacing your vehicle with one that is one model year newer with 15,000 fewer miles if yours is totaled.
- Mexico car insurance: Covers your car while you drive it in Mexico. This insurance is provided by one of Liberty Mutual’s international partnerships, MexPro.
- Accident forgiveness: Keeps your rate the same if you have a violation or get into an accident after five years of clean driving.
- Liberty Mutual Deductible Fund®: Pay an extra $30 on your premium each year in order to lower your deductible by $100. You can lower your deductible by as much as $500 over five years.
Other Liberty Mutual Insurance Products
Liberty Mutual is a huge insurance provider that offers a wide selection of insurance products in addition to auto policies. Here are just some of the types of coverage you can get from the provider:
- Homeowners insurance
- Renters insurance
- Life insurance
- RV and ATV insurance
- Identity theft protection
- Pet insurance
- Business insurance
Liberty Mutual Mobile App
Like most insurance companies, Liberty Mutual has its own mobile app. Policyholders can use this app to view their insurance id card, manage their policy, file claims, and more.
Most users report having a positive experience with the app. Liberty Mutual Mobile has a 4.8-star rating out of 5.0 averaging from more than 288,000 ratings in the App Store. It also has a 4.7-star rating out of 5.0 in Google Play from more than 88,000 reviews.
Liberty Mutual Claims Process
Filing a claim with Liberty Mutual can take as little as five minutes to complete online. The company’s insurance claims process is as follows:
- File your claim online, over the phone, or using the mobile app.
- Get your car’s damage reviewed at a repair shop. Liberty Mutual recommends one of its Guaranteed Repair network facilities for the best value, but you can choose any repair shop. You can use the app to find the nearest repair shop to you.
- Get a rental car if necessary. Enterprise has partnered with Liberty Mutual, which provides better rates for Liberty Mutual customers.
- Based on your car’s review, your Liberty Mutual adjuster will estimate the cost of repairs, schedule your repairs, and pay the repair facility. You will only have to pay your deductible.
- Check the status of your claim online, upload photos, and complete any other tasks needed to fulfill your claim.
Liberty Mutual Insurance Reviews
Liberty Mutual has been in service for over 100 years, and the company has an A+ rating from the Better Business Bureau (BBB). The company also earned an “Excellent” A for financial strength in its AM Best rating.
In the J.D. Power 2022 U.S. Auto Claims Satisfaction StudySM, Liberty Mutual scored 870 out of 1,000 possible points. This is slightly below the industry average of 873, indicating that the company is about average when it comes to servicing claims.
The company received mixed scores in the J.D. Power 2021 U.S. Auto Insurance StudySM, which surveys overall customer satisfaction ratings. Liberty Mutual scored near the top of the list in some regions and below average in others.
Positive Liberty Mutual Insurance Reviews
Customers who reported a fulfilling experience in their Liberty Mutual insurance reviews consistently praise the customer service they received from their insurance agent.
“They give you a personal customer agent with their direct phone line and email so you get to speak with a live person immediately.”
“Very competitive pricing on premiums. Have received quality, honest, and professional service.”
– Becky, via BBB
Negative Liberty Mutual Insurance Reviews
Some customers have reported expensive premiums or unexplainable rate increases every six months in a large number of negative Liberty Mutual insurance reviews.
“Constantly making alterations to policy without consumer consent. I have had an auto policy through Liberty Mutual now for about two months—and it has been either accidentally dropped and restarted or monthly payment and entire policy and payment altered without my involvement at all.”
– Kelly H., via BBB
“I then learned that Liberty Mutual charges you a penalty for leaving a policy “early” and on top of that, they leave you no way to pay that penalty online once the account is closed. I was paid ahead and they claim I owe them money due to the penalty.”
– Anon., via Trustpilot
Liberty Mutual Auto Insurance: Best for New Drivers
Overall, we believe Liberty Mutual offers broad coverage that’s transparent and easy to understand. We especially like the discounts and educational tools families can use to protect their teen drivers and promote safe driving. That’s why we named Liberty Mutual “Best for New Drivers” in our comprehensive insurance study.
Liberty Mutual auto insurance may not be the best option for budget shoppers, as customers may be surprised by their premiums. However, the company’s overall reputation and unique coverage options and discounts are enough to keep it among the best car insurance companies in the country. Liberty Mutual is worth a look for most drivers, but households with young and new drivers especially should consider the provider.
Liberty Mutual Auto Insurance: Recommended Competitors
Even if Liberty Mutual seems like the right choice for you, it’s still a good idea to shop around. We recommend getting quotes from several insurance carriers so you can compare and find the best rates for you. Both of the following providers scored among the highest in our most recent study and would make good places to start.
GEICO: Best Discount Selection
Throughout our insurance study, we found that GEICO consistently offered some of the lowest estimated rates in most markets. But the company also earned this year’s award for Best Discount Selection due to its large and diverse portfolio of savings opportunities. That means that GEICO is likely to be one of the most affordable providers for many drivers.
Keep reading: GEICO car insurance review
State Farm: Best Overall
State Farm scored the highest of any provider in our most recent auto insurance study, earning it the award for Best Overall. The nation’s largest insurer offers competitive rates, lots of discounts, and a large selection of coverage options. State Farm also features the industry’s largest network of insurance agents, claiming more than 18,000 local agents throughout the country – making it an especially good option for people who value in-person service.
Keep reading: State Farm car insurance review
Liberty Mutual Auto Insurance: FAQ
Does Liberty Mutual offer accident forgiveness?
Yes. Liberty Mutual offers accident forgiveness. However, to qualify, drivers must have no accidents or violations for five years and must have at least five years of driving experience.
How do you get Liberty Mutual affiliation discounts?
You can access Liberty Mutual’s affiliation discounts if you are a member of the military, a teacher, or affiliated with one of the many organizations recognized by the insurer. Liberty Mutual affiliation discounts generally save policyholders 5% to 10% on their car insurance premiums.
Is Liberty Mutual more expensive?
Rates always vary by state and by individual drivers, but on average our researchers found that Liberty Mutual is often a little more expensive than some of the top car insurance companies.
How does Liberty Mutual pay claims?
Liberty Mutual pays claims with a check for the cost of repairs minus your deductible. This check is issued to the repair shop, the lienholder of your vehicle, or you, depending on the situation.
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
- Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
- Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
- Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.