Liberty Mutual 2019 Auto Insurance Review: Rates, Claims Satisfaction, and Coverage

BravoDollar Editor rating:

Summary:  

The nation’s eighth-largest auto insurance company offers the traditional array of car insurance coverage options and discounts, along with several types of optional coverage which consumers can add on.   Liberty Mutual also offers a variety of personal and commercial insurance policies. Considered to be a nationwide insurance company, it serves 45 states.

Pros:

  • The company has over 100 years of insurance industry experience.
  • It is the third largest and casualty insurance company in the United States.
  • Offers Liberty Mutual Deductible Fund to help you save up for your deductible.
  • Easy to change coverage to Liberty Mutual from another car insurance provider.
  • Present in 900 locations throughout the world.

Cons:

  • Liberty Mutual’s Customers’ Overall Auto Claims Satisfaction rating is significantly below the industry average according to a J.D. Power study.
  • Some customer’s experience rate increases.
  • The company does not offer all of its auto insurance coverages and its discounts in all states.
  • Liberty Mutual’s rates tend to be at the high end of the auto insurance industry.

As a nationwide auto, personal and commercial insurance provider with a significant presence in the states that it serves, Liberty Mutual is a good choice for consumers who want to switch car insurance companies.   This may be primarily true if the customer is switching from a smaller, local or regional auto insurance company.

There are some areas in which Liberty Mutual auto insurance fails to measure up to other competitors of its size.  Significant drawbacks include the fact that the company’s rates are on the high end, yet it’s claims satisfaction is significantly below the industry average. Thus, Liberty Mutual may be a good automobile insurance company for those who already have a policy with the company such as homeowners insurance or life insurance and wish to bundle their policies.

As an insurance company which has been around for over 100 years, Liberty Mutual tends to offer the traditional insurance coverage options with a few add on features.  The company does, however, insures a wide variety of vehicles including non-traditional vehicles. A variety of property and life insurance coverage options are also available through Liberty Mutual.

The Value Equation ($$$)

One of the primary factors that consumers consider when shopping for car insurance is the premium cost.  Like other auto insurance companies, your Liberty Mutual premium will depend on your age, location, coverage choices, driving history, and the type of vehicle you wish to insure among other factors.  It is important not to simply look for the cheapest insurance premium since that may mean that your coverage is the minimum required by the state in which you live, and you may not be sufficiently covered in the event of an accident.

To get a quote from Liberty Mutual, you can go to its online platform and enter your information.  It you like the quote you receive, you do have the option to purchase directly from the website. You can receive a discount on your coverage if you opt to complete your auto insurance coverage purchase online.  Thus, you do not have to deal directly with an agent if you opt not to. Furthermore, you can receive a quote over the phone by calling 1-800-426-9898.

Here’s a glimpse of how Liberty Mutual’s average premiums compare to 2 other large national providers.

Liberty Mutual offers a mid to high premium in comparison to large competitors such as State Farm and GEICO, the largest and second largest insurance provider in the US.

 GEICOState FarmLiberty Mutual
Drivers in their 30s$1,218$2,379$2,686
Drivers in their 40s$1,189$1,587$1,926
Drivers with at-fault accident$1,580$1,524$2,112
Drivers with DUI/DWI$2,550$3,854$4,182
Drivers with speeding ticket$1,395$1,983$2,068

Discounts

Although Liberty Mutual’s premiums are on the high side, the insurance company does offer some discounts to reduce the cost of your premium if you qualify.  They fall into these categories:

  • Vehicle discounts – discounts for advanced safety features, being anti-theft device equipped, and/or alternative energy car discount.
  • Your driving – accident free discount, violation free discount, and a discount for enrolling in Liberty Mutual’s RightTrack program.
  • Customer Loyalty discounts – insuring multiple cars with Liberty Mutual and having more than one type of insurance policy with Liberty Mutual earn discounts.
  • Policy discounts – preferred payment discount for enrolling in automatic payments, pay in full discount, online purchase discount, and paperless policy discount.

In much the same way as with other auto insurance companies, the discounts that you qualify for with Liberty Mutual are mostly determined when you obtain the policy; however, you may be able to add a few discounts later if you become qualified for them.  Discounts are determined by a variety of personal factors such as age and driving record. Furthermore, you must remain qualified for the discounts throughout the life of the policy to continue to receive most discounts.

Claims Satisfaction

Many consumers look for an auto insurance company that has a rather high level of claims satisfaction.   According to the study conducted by J.D. Powers, Liberty Mutual’s auto insurance claims satisfaction rating is solidly below average.  In fact, Liberty Mutual ranks near the very bottom of the list, below companies such as State Farm, Allstate, GEICO, Nationwide, Travelers, The Hartford, Esurance, and Progressive.

How easy is it to file a claim with Liberty Mutual?

  • Log in to your account on Liberty Mutual’s website and file a claim at https://www.libertymutual.com/auto
  • File a claim through their mobile app
  • Call your insurance agent
  • Call their claims Department: 1-844-825-2467

What is the average consumer experience and satisfaction with Liberty Mutual?

Each year, J.D. Power surveys an estimated 10,000 consumers who have filed a claim in the last six months for its Auto Claims Satisfaction Study.  Insurance providers are ranked on a 1000- point scale based on the results of this survey. Liberty Mutual ranks near the bottom of the list of insurers, significantly below the national industry average of 861, with a score of 847/1000.  In comparison, State Farm received a scored of 864/1000 and GEICO scored 857/1000.

Coverage Options

As the eighth largest nationwide automobile insurance provider in the U.S., Liberty Mutual Insurance offers the traditional array of car insurance coverage options.  The chart below compares Liberty Mutual to the top two largest insurance providers in the U.S, State Farm and GEICO. Note that many of the features are available in all 3 with very few unique features.

CoverageLiberty MutualState FarmGEICO
Liability
Physical Damage
Uninsured Motorist
Medical Payments Coverage
Comprehensive
Collision
Roadside Assistance
New Car Replacement
Better car Replacement
Rental Reimbursement
Gap InsuranceOnly for State Farm Bank financed vehiclesX

Other Insurance

In addition to cars, trucks, minivans and SUVs, Liberty Mutual also insures boats, ATV and off-road vehicles, motorcycles, antique and classic cars and recreational vehicles.  Thus, you can get both your transportation and recreational vehicles insured by the same company.

Moreover, Liberty Mutual offers consumers a variety of property insurance policies such as homeowners insurance, condo insurance, motor home insurance, flood insurance and renter’s insurance for apartment dwellers.  You can also buy umbrella insurance from Liberty Mutual if you feel you need additional coverage.

Liberty Mutual also offers term life insurance, whole life insurance and annuities.  This may not be as many options as those offered by other large insurance companies which offer universal life and other options, but the offerings Liberty Mutual has may be what you want.

Liberty Mutual also offers an array of insurance types for small businesses.  Some examples of the insurance that the company offers small businesses is commercial auto insurance, property insurance, equipment breakdown insurance, workers compensation, and umbrella insurance.

A unique type of insurance that Liberty Mutual offers is that of Tuition Insurance.  Tuition Insurance kicks in if your undergraduate or graduate student has to unexpectedly withdraw before the end of the semester.  Liberty Mutual will refund you the tuition and fees that were paid for that semester.

Pet insurance is also available through Liberty Mutual.

Website Experience

Liberty Mutual’s website is rather easy to navigate when it comes to finding out what coverage options are available, getting a list of some common discounts, and obtaining a quote.  The website is comprehensive and allows the user to create an account, download ID cards, pay their bills, change their coverage and file and track a claim. You can even purchase insurance straight from the website without having to talk to an agent.  The company even offers a discount when you obtain your coverage online. Liberty Mutual also offers and app for both iPhone and Android users which you can use in much the same way as the website.

The Bottom Line

  • Liberty Mutual’s customer claims satisfaction rating tends to be lower than that of other major nationwide auto insurance companies such as State Farm, GEICO, Farmers, Nationwide, Progressive and Allstate.
  • The cost of Liberty Mutual’s car insurance policies are at the mid to high end regardless of their claims satisfaction rating.
  • However, the company has been in business for over 100 years and has a very solid financial rating.
  • Moreover, Liberty Mutual offers an array of coverage options and has a comprehensive website where you can take control of your auto insurance without needing to deal with an agent.
Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

No comment yet, add your voice below!


Leave a Reply