Most independent insurance brokers who offer car insurance represent multiple companies so they will have various sources to find the best policy to meet the needs of their customers and prospective customers.
Car insurance companies vary on how they distribute their products and it’s important to understand the difference between an insurance agent, (typically represents a single insurance company) and insurance broker (typically represents multiple companies).
Although car insurance shoppers can get great prices and value from a company agent and an independent agent, it’s best to shop with both to make certain your auto insurance policy is the best insurance solution for your individual needs and budget.
We are continually rating the carriers we represent to make certain they are offering quality products that deliver value to our customers, provide outstanding customer service and claim service, and are financially stable so they can always keep their financial promise to our clients.
In this article, we’ll drill-down into Liberty Mutual Car Insurance to provide the information you need to make an informed purchase decision for your car insurance.
About Liberty Mutual Insurance Company
Liberty Mutual Insurance Group, which is currently headquartered in Boston, Massachusetts, was established in 1912 and since then has become a leading property and casualty insurance that services all of the U.S. and offers property and casualty products globally. The highlights of Liberty Mutual include:
- Ranked #75 by Fortune based on the company’s revenue in 2018
- Ranked as the 5th largest property and casualty insurer in the U.S. according to 2018 premiums
- Currently operating in 30 countries and economies worldwide
- Employs more than 50,000 employees to service millions of loyal and satisfied customers
Liberty Mutual offers a diverse selection of property and casualty products that include auto insurance, property insurance, casualty insurance (liability), commercial vehicle insurance, and business insurance for any size operation.
The Benefits of a Mutual Insurance Company
The primary benefit of doing business with a mutual insurance company is that the company is owned by the policyholders rather than stockholders. This means that the company’s management is responsible to its customers rather than Wall Street.
Additionally, profits shared with policyholders via dividend payments or premium credits rather than with stockholders. When you purchase an insurance company from Liberty Mutual, you automatically gain ownership in the company.
Liberty Mutual’s Financial Ratings
Knowing your insurance company’s financial ratings should carry a lot of weight in your purchase decision. A simple definition of insurance is “a promise to pay in return for a premium.” Knowing this, the insurance companies you do business with must demonstrate the financial stability to pay the claims of their clients on a long-term basis. Cheap insurance buys nothing of the insurer cannot live up to its promise to pay in the contract.
The financial stability ratings that are currently assigned to Liberty Mutual are:
- A.M. Best: A (Excellent) – This means that the company demonstrates an excellent ability to meet their long-term obligations to policyholders and that the company’s outlook is stable.
- Moody’s: A2 (Good) – The A2 rating demonstrates that Liberty has the ability to meet its obligations to its policyholders and the company’s financial outlook is stable.
- Standard & Poor’s: A (Strong) – An insurance rated A has strong financial security characteristics that demonstrate a stable outlook for policyholders.
Other Personal Insurance from Liberty Mutual?
For insurance consumers who like the discounts offered when you bundle your car insurance with other products, Liberty Mutual has a lot to offer:
|Auto & Vehicle||Property||Other|
|Personal Auto||Homeowners||Life Insurance|
|Watercraft||Condo||Critical Illness Insurance|
|Classic/Antique Car||Landlord Insurance||Pet Insurance|
|ATV and Off-Road Vehicle||Mobile Home||Tuition Insurance|
|RV and Travel Trailer||Flood||Identity Theft|
|Personal Umbrella||Business Insurance|
Liberty Mutual Auto Insurance Coverage
Liberty Mutual’s standard auto insurance package offers the coverages you need to protect you financially if you are responsible for bodily injury liability or property damage to a third-party, and the policy provides the coverage you’ll need to pay to replace or repair your vehicle is damaged in an accident, by vandalism, or stolen.
|Bodily Injury Liability||Pays for injuries to other drivers or passengers in an at-fault accident subject to the limits in the policy.|
|Property Damage Liability||Pays for repairs or replacement of another person's vehicle or property during an at-fault accident subject to the limits of the policy.|
|Medical Payments||Medical Payments covers medical expenses for you and other passengers in your vehicle in an accident no matter who's at fault. This coverage will even cover you for injuries sustained in another person's vehicle or as a pedestrian up to the limit in the policy.|
|Personal Injury Protection (PIP)||PIP covers the driver, all passengers, or a pedestrian involved in an accident no matter who's at fault. PIP helps pay for medical expenses, lost wages, loss of services, and funeral expenses up to the policy limits. This coverage is typically mandatory in "no-fault" states.|
|Uninsured/Underinsured Motorist||Uninsured/Underinsured motorist covers your medical expenses if the other driver (at-fault) is uninsured or underinsured. Some states also allow uninsured/underinsured property damage that covers your vehicle as well.|
|Comprehensive Coverage||Comprehensive coverage pays to repair or replace your vehicle after a non-collision event such as fire, vandalism, theft, or acts of nature subject to your deductible.|
|Collision Coverage||Collision coverage pays to repair or replace your vehicle after an accident that involves another vehicle or object subject to your deductible.
|Emergency Roadside Assistance||Roadside assistance is available if you are locked out of your vehicle or required roadside assistance like a tire change or fuel for an empty tank. Your coverage for each event is subject to the limit you purchased on your policy.|
|Rental Reimbursement||Rental reimbursement helps pay for rental expenses if you are in an at-fault accident or
hit by an uninsured driver. Most policies will have a limit per-day and per-accident.
In addition to the standard auto insurance coverages, Liberty also provides several features that you’ll likely not find with other insurance companies:
- Liberty Mutual Deductible Fund® – The Liberty Mutual Deductible Fund is a way to save money to use toward your comprehensive and collision deductible.
- Lifetime Repair Guarantee – When you use one of Liberty Mutual’s approved auto repair facilities, the repair work is guaranteed for the life of the vehicle.
- New Car Replacement – Liberty will pay to replace your vehicle with a brand-new one if your totaled vehicle one-year-old or less and has been driven less than 15,000 miles.
- Better Car Replacement – This optional coverage provides for Liberty to replace your totaled vehicle with a model that is a year newer than your totaled car and with less than 15,000 miles on the odometer.
- Accident Forgiveness – Liberty Mutual guarantees not to increase your insurance premiums after your first accident. This coverage is optional and not available in California.
What Coverages are Required in My State?
Depending on the state you live in, you will have to buy at least the minimum liability limits required by the state to register your vehicle and get a tag. These liability limits vary significantly across the country and some states may require to buy additional coverages like uninsured/underinsured coverage and/or medical payments.
To find out what your state’s vehicle liability requirements are you can visit the Insurance Information Institute online. It’s important to note that the minimum liability requirements are for registration only and may or may not be enough coverage to sufficiently financially protect you in the event of an at-fault accident, especially if you cause an accident that involves multiple vehicles or high-end luxury models.
What about Liberty Mutual’s Discounts?
Liberty Mutual is a leader in the industry when it comes to offering insurance policy discounts and this is a primary reason that we love representing them:
Liberty also offers a new insurance concept called “Pay-as-you-go” or the ByMile Program which allows you to pay premiums based on the number of miles you drive. This program can really benefit those vehicle owners who put a low amount of miles on their car each year.
What Customers are saying about Liberty Mutual
If you want a clear picture of what Liberty Mutual policyholders think about their company, you can find out instantly by checking several rating platforms online:
What We Think
Although Liberty Mutual is typically not the cheapest insurance company out there, their pricing is offset by being a discount leader in the industry. For shoppers who qualify for the majority of the discounts they offer, they’ll find Liberty’s car insurance rates very competitive with all the other national companies out there.
Additionally, you should not overlook the company’s financial stability and the number of other insurance products that you are likely to need.
Liberty has been at it for over 100 years and we believe that car insurance shoppers should have them at the top of their list when they are concerned about value, customer service, and claims service.