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|Current Executives||CEO - David H. Long|
|Number of Employees||Nearly 50,000|
|HQ Address||175 Berkely Street, Boston, Massachusetts 02116|
|Best For||Worker's Compensation|
You know this scenario: You’ve been with your insurance company—let’s call them Buddy’s Auto Insurance—for the past three years. But lately, it seems…its customer service hasn’t been good. It didn’t pay out on a claim when your car was vandalized.
Your rates went up 20 percent, and they couldn’t give you an explanation of why. So you want to switch.But the question is how? And to whom? Running into problems with your insurance company is never good, and it may seem difficult to switch.
After all, insurance has all these phrases that can be difficult to understand—deductibles, premiums, hard-braking incidents, comprehensive vs collision, GAP coverage. These are the technical terms of car insurance, and they can be confusing.
We understand—and have got you covered.
Here follows a review of a company you might have been thinking about signing up for—Liberty Mutual.
You may have been enticed by its Emu commercials, heard good things about its claims process, or know that it does good in the community.
But you may have questions:
- What are its rates across states?
- What do its employees say about it?
- What are its financial strength ratings?
We have all that and much, much more.
From financial strength ratings to employee experience, from how its rates vary by state and how easy it is to navigate its website, here is the complete guide to Liberty Mutual.
Ready to compare rates? Try our FREE online tool.
Certainly, you know this: That credit score of yours is a thing. It determines the rates you get on car loans, house notes, other credit cards. And if you do things that make it go down…you can be in trouble.
They give an idea of the income to debt ratio of these companies, whether they are in trouble with credit, how solvent they are.
AM Best: The Best rating is an independent opinion on whether an insurance company can meet its financial obligations, to customers and to debtors. Liberty Mutual has an A rating, which is categorized as excellent.
Moody’s: Moody’s rating is based on credit risk; how much debt a company has, how likely they are to meet obligations to pay their creditors. Liberty Mutual is ranked A2, which means they are upper-quality and are subject to low credit risk.
S&P (Standard and Poor’s): S&P is another credit rating company that analyzes the credit risk of a company. Liberty Mutual is ranked as A, which means they have a strong financial standing but are subject to change in circumstances and economic downturns.
|Better Business Bureau||A-|
|NAIC Complaint Index||6.32 (over the median by 5.17)|
|JD Power||Overall Satisfaction: 2/5|
BBB (Better Business Bureau): The BBB rating is based on complaints from customers, how transparent the business is, and if any legal action has been taken against them. Liberty Mutual gets an A- rating, which is two steps from the highest rating.
NAIC (National Association of Insurance Commissioners): This is a complaint index, where the number of complaints is weighed against how many premiums they write. Liberty Mutual has roughly six complaints for every premium, much higher than the mean for all companies.
J.D. Power gives Liberty Mutual a two out of five for overall customer satisfaction.
|Factors in Claim Process||Rating (out of 5)|
|First Notice of Loss||3|
Consumer Reports gives Liberty Mutual an 88 out of 100.
|Liberty Mutual Customer Service||Consumer Report Score|
|Ease of Reaching an Agent||Very Good|
|Simplicity of the Process||Very Good|
|Promptness of the Response||Very Good|
|Damage Amount||Very Good|
|Agent Courtesy||Very Good|
|Timely Payment||Very Good|
|Freedom to Select a Repair Shop||Very Good|
|Being Kept Informed of Claim Status||Very Good|
Consumer Affairs (or their reviewers) gave Liberty Mutual a 1.2 out of five through 170 reviews. However, Consumer Affairs reviewers are likely to be looking to complain; that’s the way the site is set up. Therefore, take the lower rating with a grain of salt.
We all have our histories—where we grew up, what our formative years were like, what impact we made on the people around us and our environments.
Liberty Mutual is no difference, and its history is long.
Founded in 1912 as Massachusetts Employees Insurance Association, Liberty Mutual grew in the span of a few decades to become one of the largest property and casualty insurance groups in the world.
It pioneered numerous innovations:
- Distributing safety driving manuals to teens in 1930, the precursor to its teen driving program today
- Creating two prototype survival cars in 1957, which introduced headrests and seat belts
And opened institutes to help those in pain from work or car-related injuries:
- Opened the first rehabilitation center in the country in 1943 with the goal of restoring the injured to lead useful lives
- Opened The Back School in 1982 to help workers who suffered from lower back problems to live productive lives
- Established the Center for Disability Research at the Research Center for Safety and Health at Hopkinton, Massachusetts
All this while providing more service for contractors in World War II than any other casualty company. Its history is good and it has made an impact in numerous ways. However, so have a lot of its competitors.
How does Liberty Mutual fare against the Nationwides and the State Farms of the world?
Market share, within the insurance industry, is defined by how many premiums you have written, compared to other companies.
|Liberty Mutual Market Share||2015||2016||2017||2018|
|Private Passenger Auto||4.97%||5.01%||5.01%||4.77%|
Liberty Mutual remains steady for both private passenger auto insurance and total lines. However, the impact of those statistics is different. For 2018, Liberty Mutual is ranked sixth overall in private passenger auto insurance share.
This is behind:
- State Farm: 17 percent
- Geico: 13.4 percent
- Progressive: 11 percent
- Allstate: 9.2 percent
- USAA: 5.9 percent
For total lines, however, Liberty Mutual is ranked third overall.
The overall property and casualty lines are much more fragmented, possibly because there are many more forms of insurance and that leaves vacuums for competitors to fill.
In the end, Liberty Mutual is high in market share in both; but its overall score is more indicative of its financial strength in the industry.
– Service Type
If you’re looking to buy a policy, we know how frustrating it can be. There are numerous avenues to try, and some of them might not suitable or give you what you need. Liberty Mutual offers five methods for finding out more information and/or buying a policy:
Online: This may be one of your best avenues. Liberty Mutual has a website with descriptions of policies, a way to get quotes, and a way to buy.
Agents: For those who like the in-person interactions, an agent is a wise choice. An agent can walk you through all the steps of buying a policy and can have you purchase one right there.
Customer service: If you need more information about a policy, you can call Liberty Mutual’s customer service line at 1 (888) 398-8924 and speak to an agent.
Mail: If you’re not concerned about response time, you can always send a snail mail to Liberty Mutual’s address with your questions or queries.
So, you’re sitting around the dinner table. Your child is struggling to eat his green peas and your wife looks frazzled from a long day arguing cases in court. You want to start talking about something light, something funny. You bring up Liberty Mutual’s accident forgiveness policy.
So, that’s probably not the case.
Car insurance isn’t often the topic of family conversations, at least not at the dinner table. Car insurance companies know this; they know that insurance can be, well…very, very dry.So, therefore, when they advertise, they come with something that appeals to most everyone: comedy.
And Liberty Mutual has the LiMu Emu.
New car buyer:
The confused Emu:
The commercials are based off a 1970s buddy cop theme.
They even do a larger, mock behind the scenes video:
Insurance companies spend a lot on their advertisements, leading some to blast them.
Liberty Mutual spent $270 million on advertising in 2017, which was only fourth in the rankings, behind:
- Geico: $1.4 billion
- Progressive: $622 million
- State Farm: $521 million
It’s a lot of money, and some argue this impacts the consumer, as it can lead to rate hikes.
– Community Service
Some may gauge a person by two questions: How do they treat others and are they active in the community?
To that end, it’s important to look at Liberty Mutual from the framework of do-gooding: How much work does it do in the community and in what areas does it do it?
Liberty Mutual does quite a bit.
Its philosophy is written on its website:
Through Liberty Mutual Insurance’s philanthropic efforts, we look to support best-in-class organizations that are changing the lives of some of our most vulnerable neighbors.
There are three main focuses of Liberty Mutual’s community service:
- Accessibility: Programs that strengthen nonprofit organizations and the general public to be more accessible for people with disabilities
- Education: Programs for low-income youth that provide consistent learning opportunities for them to reach their full potential
- Homelessness: Programs that provide emergency shelter, food, and medical services for all homeless people, though with a specific focus on homeless youth
Employees have additional options to do community service by championing issues within the company and logging hours doing volunteer work.
– How Is It Positioned for the Future?
Everyone generally focuses on what’s in front of them.
For Jim, it’s how many things can he stuff in a bag at the supermarket. For Anne, it may be making that follow-up call to Ed to sell that boat. And for insurance companies…
It’s probably how many premiums are written this month or whatever quarterly goals are set.
But there’s a larger picture at stake—as in, what is the future of ‘x’ company in the auto insurance industry?
Five years? 10 years? 30?Let’s take a look at Liberty Mutual. The company with the LiMu Emu has strong financial ratings from the leading rating companies.
- AM Best: A
- Moody’s: A2
- S&P: A
Those bode well.
Those ratings generally mean, however, that Liberty Mutual can be hurt by economic downturns and other circumstances. However, Liberty Mutual will be under the pressure of other circumstantial forces affecting the auto insurance industry.
- Autonomous cars
- Manufacturer insurance policies
- Safer, technology-enhanced cars
KMPG, one of the big four accounting firms in the world, estimates that the auto insurance industry will shrink by 70 percent by 2050.
For now, Liberty Mutual is safe. However, it’s possible that soon, Liberty Mutual and the rest of the companies will start feeling the squeeze.
– Age of Employees
A company may be young, old, or in-between, and, despite being founded more than a century ago, Liberty Mutual would certainly be considered a young company today.
|Millenial (born between 1981 and 1997)||45%|
|Gen X (born between 1965 and 1980)||36%|
|Baby Boomers (born between 1945 and 1964)||18%|
A remarkable 45 percent of its employees are millennials, who are between 22-39 years old. A young company can signal many things, including a desire for younger people to work there who see Liberty Mutual as a place to grow. It may also show an ability to innovate, using technologies and analytical tools that may appeal to the younger generation.
Youth is good, but experience is important as well.
The majority of employees have been at Liberty Mutual for less than 10 years.
This can be problematic on some level, as higher positions would be filled with candidates who have less experience than previous recipients of promotions. However, the fourth-highest category is actually the ones with the most experience: Those with 20-plus years.
It could be seen that Liberty Mutual has a good mix of young and old, inexperienced and not, which allows for new ideas to be brought in with the stability of a stable organization.
– Employee Experience
You certainly remember your last employer, your best employer, and your worst. What would you write about them if you could?
And what are the employees writing about Liberty Mutual?
Fortunately, the Internet has the answer.
From the survey site, Great Place to Work: 83 percent of employees say that Liberty Mutual is a great place to work.
|Statement||Percentage in Agreement|
|I feel good about the ways we contribute to the community.||91%|
|When you join the company, you are made to feel welcome.||91%|
|I am able to take time off from work when I think it's necessary.||89%|
|People here are given a lot of responsibility.||88%|
|Management is honest and ethical in its business practices.||86%|
Most people agree that they feel good about the ways their organization contributes to the community, that they can take time off if they need to, and that management is honest and transparent.
From Glassdoor: Its reviewers are not as kind.
|Rating||3.3/5 (4,152 reviews)|
|Recommend to a Friend||55%|
|Approve of CEO||67%|
Not great ratings from Glassdoor (that 3.3 is essentially a failing grade on a school test) but keep in mind:
Glassdoor reviewers seek out the site to give a review, meaning they might be likely to give a bad rating.
From Payscale: The job is highly stressful.
Not great ratings here either, but another site where people seek out the site to give a review.
– Awards and Accolades
Along with employee experience, awards and accolades can allow for a glimpse into the company’s culture.
|Issuer||Year of Award||Award|
|Great Place to Work||2019||#37 in PEOPLE 2019 Companies that Care®|
|Forbes||2019||#105 America's Best Employers for Women|
|DWG||2018||Digital Workplace of the Year (DWG)|
|Forbes||2018||#62 Best Employers for New Graduates|
|Forbes||2018||#111 America's Best Employers for Women|
|Forbes||2018||One of America's Best Large Employers|
|Forbes||2018||#25 Best Employers for Diversity|
|Great Place to Work||2017||#80 Best Workplaces for Diversity|
Liberty Mutual has received awards for everything from digital work culture to diversity.
To further diversity in its workforce, Liberty Mutual has created employee resource groups that connect and support communities with empowerment.
- Amigos (Hispanic/Latino community)
- Liberty Employees of African Descent and Allies (African America/African descent communities)
- Pride (LGBTQ communities)
Liberty Mutual’s philosophy:
We believe that the inclusion of allies is a critical component of ERGs, as it gives employees of different backgrounds an opportunity to learn about others and make their communities stronger.
Cheap Car Insurance Rates
We’ve all been there:
It’s the first of the month and that envelope comes through the mail.
It’s in that standard logo and color pattern of your car insurance company. It’s an uneasy moment and you feel a churn in the stomach. You open, see the statement, and the bold number jumps out at you.
The first thing you say: How did they get that number?
Car insurance rates are set according to numerous factors:
- Driving record
- Credit history
- Whether you’re male or female
Liberty Mutual does things no differently than the rest when it comes to factors.
So what are Liberty Mutual’s rates?
– Liberty Mutual Availability and Rates by State
Car insurance prices vary by state.
The reason being is that in some states there is a higher likelihood of filing a claim, which drives up costs for the company, leading to higher rates for the consumers.
These reasons can anything from more hard-braking incidents, more accidents, more thefts, or more violations.
|State||Annual Premium||Higher/Lower Than State Average||%|
|Arizona||NA in State||-||-|
|District of Columbia||–||-||-|
Liberty Mutual’s rates vary significantly from state to state. There is an $18,700 difference between the average premiums in Michigan ($20,000) and Montana ($1,300).
– Comparing the Top 10 Companies by Premium Average
Companies offer different rates for different reasons.
- Cost of doing business like employee salaries and operational costs
- Likelihood of driver filing a claim
- Different levels of coverage limits
However, some are on average higher and the others and some are lower.
|Company||Average Premium||Compared to Liberty Mutual (+/-)||Compared to Liberty Mutual (%)|
Liberty Mutual clears the field by about $1,200. It is 20 percent more expensive than the nearest competitor (Allstate; $4,900). And it is 58 percent more expensive than the cheapest competitor (USAA; $2,500).
While there are some outliers here working against Liberty Mutual (five of the states in the previous section have over $10,000 average premiums), it is still the most expensive—and it’s not remotely close.
– Average Liberty Mutual Male vs Female Insurance Rates
Whether you’re male, female, single, married, young, or old all affect your rates.
|Married 35-year old female||$3,802.77|
|Married 35-year old male||$3,856.84|
|Married 60-year old female||$3,445.00|
|Married 60-year old male||$3,680.53|
|Single 17-year old female||$11,621.01|
|Single 17-year old male||$13,718.69|
|Single 25-year old female||$3,959.67|
|Single 25-year old male||$4,503.13|
There’s a $10,200 difference between a single 17-year-old and a married 60-year-old woman.
Unlike most companies, Liberty Mutual has a significant difference between male and female rates for all but one age bracket.
- $2,000 for 17-year-olds
- $550 for 25-year-olds
- $54 for 35-year-olds
- $235 for 60-year-olds
All of these favor the women.
The reason being is that women, in general, are seen as safer drivers than men, less likely to file a claim, which leads to them having lower premiums, though this is not always the case.
Married versus single works the same way.
There’s a perception that when you’re married, you’re less likely to take risks like speeding or weaving through traffic. You’re also likely to be financially secure, which means you’re more likely to pay the premiums. All of these results in discounts, either formally, or through rates.
The young versus old should speak for itself.
– Rates by Make and Model Last Five-Year Average
Car insurance rates vary by make and model for numerous reasons.
- The value of the car bought straight off the lot
- The year of the car, or how much it’s depreciated
- The size of the car, as larger, boxier cars are more likely to be involved in accidents
This can cause rates to fluctuate a little bit, while presumably staying close to other vehicles of the same make and model.
|2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$5,830.16|
|2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$5,869.32|
|2015 Toyota RAV4: XLE||$5,825.33|
|2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$5,988.85|
|2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$6,682.63|
|2018 Toyota RAV4: XLE||$6,244.44|
The newer models all cost more to insure. The surprising piece is that the Honda Civic, with the lowest MSRP, costs the most to insure. Costs even out after three years once all vehicles get some depreciation on them.
You may ask: What are some other factors?
One we can certainly tell you is this:
Although red cars are statistically proven to lead to more tickets, insurers say they don’t factor in the color of your car for rates.
– Average Liberty Mutual Commute Rates
Commute rate affects car insurance rates for the simple reason that the more you drive, the more likely you get into accidents.
|Commute and Annual Mileage||Average Premium|
|10 miles commute. 6000 annual mileage.||$5,995.27|
|25 miles commute. 12000 annual mileage.||$6,151.63|
Liberty Mutual has about a $150 difference in rates between 10-mile commutes and 25-mile commutes. Men get hit by this the hardest, as statistics show they drive more than women, on the whole.
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– Average Liberty Mutual Coverage Level Rates
Coverage level rates can vary for numerous reasons.
- The amount of the coverage limit
- Whether that coverage includes add-ons like collision and comprehensive
- Whether that coverage includes special buys like emergency roadside assistance
Liberty Mutual is no different than other insurance companies in that regard.
But, unlike many other companies, there is a steep difference between the high coverage and the low coverage costs: $550. And even the low coverage cost is higher by $1,000 than the average premium for the next highest competitor.
– Average Liberty Mutual Credit History Rates
We’ve looked at the financial ratings for Liberty Mutual, with them all being strong. Like the S&P, Moody’s, and AM Best, Liberty Mutual assesses its potential consumers’ credit ratings using its own formula. The results can lead to a big difference between good credit rates and poor credit rates.
|Good Credit||Fair Credit||Poor Credit|
The difference with Liberty Mutual is $4,400.
Liberty Mutual, like other companies, uses their in-house credit formula to determine which drivers are more likely to make claims.
Fortunately, there has been a big push in some states, including by some congressmen and women to get rid of all the auxiliary factors in determining car insurance and just go with driving record.
– Average Liberty Mutual Driving Record Rates
Speaking of which. Your driving record also impacts car insurance rates.
|Clean Record||One Speeding Ticket||One Accident||One DUI|
Part of the jump is the claim itself; then there is the likelihood you’ll make another claim.
DUIs hurt the worst: About a $3,000 jump from a clean record.
Speeding tickets hurt the least: But it’s still about a $1,000 jump.
Accidents are in the middle—about a $1,500 jump—but there are other factors with all these to consider, such as court costs and deductibles to meet. Still, Liberty Mutual penalizes you significantly, even compared to other insurance companies.
Have you had this feeling: You’re going through a company’s website, looking for insurance right for you or your family. You see all these neat links—auto, RV, life, umbrella—and in general, you know what they mean until you get to the specifics.
There’s comprehensive vs collision, GAP coverage, underinsured/uninsured motorist, vanishing deductibles, and all of a sudden it’s raining cats and dogs.
Don’t worry, we’ve got you covered.
We know that going through coverages can be confusing.
That’s why, in this section, we’ve sorted it all out.
– Types Besides Car Insurance
Car insurance is actually not Liberty Mutual’s top-selling point when it comes to insurance.
The company initially started out as the country’s first worker’s compensation company and still retains the title as the leader in that part of the insurance industry.
However, they are a full property and casualty insurance company, meaning they have a whole host of options aside from car insurance.
Some of them are typical; some of them might surprise you.
Homeowners: This insurance coverage takes the risk out of owning a home if something devastating were to happen. With Liberty Mutual, the dwelling, belongings, and additional living expenses are covered. There’s even liability protection as well.
Life: This protects your family financially if you were to pass away. With Liberty Mutual, the plans are based on a fixed term; five, ten, twenty years. Some of the benefits include a tax-free benefit and 100 percent return of premiums guarantee.
Umbrella: This adds to your liability insurance—sometimes up to the tune of millions of dollars. It’s an extra safeguard if something catastrophic were to happen. With Liberty Mutual, the policy covers the costs of libel and slander and lawsuits, whether they are frivolous or not.
Pet: This protects you from the cost of having an ill pet. With Liberty Mutual, the coverage covers accidents and injuries, serious illnesses like diabetes and cancer, and minor conditions like upset stomachs and ear infections.
And while auto insurance is the first kind of coverage you might think of for motorized vehicles, Liberty Mutual has coverages for many others.
These include boats, motorcycles, classic cars, and ATVs.
Liberty Mutual has 22 coverages overall, with many of them having subset coverages.
– Types of Car Insurance
Liberty Mutual has 14 types of auto coverages, each with certain layers of protection.
|Standard Auto Insurance Coverages||Purpose||You might need it:|
|Bodily Injury Liability||Will pay for the other drivers' medical bills/loss of income in an accident you caused||When the 25-year-old rock star you hit has broken his strumming hand|
|Property Damage Liability||Will pay for the damage to the property in an accident you caused||When the policeman insists you pay for hitting his vehicle|
|Medical Payments||Helps pay for you and your passengers' medical costs after an accident||When a car strikes you and you sprain an ankle|
In all cases, states require you to have bodily liability and property damage liability in order to drive. In some cases, medical payments (Med Pay) is required too. Liberty Mutual takes these three, which are all essential to protection while driving, and puts them in their standard package.
|Add-On Personal Coverage||Purpose||You might need it:|
|Uninsured Motorist||Helps you when you are in an accident with a driver who's uninsured||Because drivers in American have no chill|
Underinsured/uninsured motorist is a requirement in many states.
The reason being?
Being hit by an underinsured/uninsured motorist can leave your vehicle totaled—and you with nothing.
The state also takes a penalty, as they have to find the person, suspend their license, and, depending on the severity of the crash, imprison that person.
|Add-On Vehicle Coverages||Purpose||You might need it:|
|Collision||Pays for damages to your car in a collision with an object or vehicle||When an 80-year-old woman strikes your car from the rear|
|Comprehensive||Pays for damages to your car for situations not involved in a collision (theft, vandalism, etc.)||When a 16-year-old kid spray-paints your car|
|Towing and Labor Coverage||Pays for the cost and labor when you car has to be towed||When the bald, large man is charging $80 for a tow|
|Rental Car Expense||Gives you access to a rental car if your car is in the shop for a claim||When you need to get to work but your car has major damage from an accident|
|Gap Coverage||Covers the gap between the actual value of your car and what you owe, if your car is totaled||When your car is totaled and the manufacturer still wants money|
These are all optional coverages, with all of them helping with specific situations that are unusual but all can hurt financially (or with lost time).
|Special Auto Coverages||Purpose||You might need it:|
|Roadside Assistance||Helps you when you are stranded at the side of the road||When you have a flat tire and it's raining, hailing, and cars are whipping past you|
|Lifetime Repair Guarantee||Repairs are guaranteed if you use an approved facility||If you believe having more money is a good thing|
|New Car Replacement||They'll help you get a new car if yours is totaled||If you have no luck with cars|
|Better Car Replacement||They'll help you replace your used car with certain stipulations||If you have a little more luck with cars|
|Original Parts Replacement||Replacing your damaged parts with OEM parts||If you're a stickler for the original parts|
|Accident Forgiveness||If you get in an accident, your rates won't go up||When it's the Mercury retrograde and your luck is up|
These are more for repairs, replacement, or an emergency. Having your car breakdown in the rain on the side of the road is no fun. Having to repair it with after-market products may not be what you want. Having to replace it because it’s been totaled…well, that’s disappointing to say the least.
– Operational States
Liberty Mutual is active in all but seven states.
- New Mexico
- South Carolina
This is good, as if you like your Liberty Mutual plan, you can take it with you from state to state.
You’ll need to get it updated, however, which can influence your rates.
– Discounts Offered
Liberty Mutual offers 38 discounts, which is tied for the highest by any car insurance provider.
|Personal Auto Discounts||Details|
|Homeowner||Need to be a homeowner|
|Military||Active, retired, or reserve personnel|
|Early Shopper||Signing up before current policy expires|
|Good Student||If you have a B average or better|
|Student-Away-At-School||If your son or daughter is away at school and drives infrequently|
Like the categories mentioned in the previous section, these discounts are for demographic issues, with the one exception being the Early Shopper.
It’s important to note that Liberty Mutual has a military discount, which is fairly uncommon among car insurance providers.
|Advanced Safety Features||Examples: Anti-lock brakes adaptive headlight, electronic stability control|
|Alternative Energy||For owners of hybrid or electric cars|
|Anti-Theft Device||Certain anti-theft technologies required|
Two of these are claim-based.
- If you have an anti-theft device, you’re less likely to file a claim about someone stealing your car.
- If you have the advanced safety features, you’re less likely to get in a wreck.
Both of these save Liberty Mutual money.
The other is environmental; Green is in.
|Accident-Free||Accident-free driving histories are rewarded with savings|
|Deducible Fund||Over time, without an accident, deductible goes down|
|RightTrack||Sign-up and complete the RightTrack program; discounts up to 30%|
|Violation Free||Same deal if you're violation-free|
These are all bonuses if you are a safe driver, with RightTrack tracking your driving use to determine what likelihood you have of getting in an accident.
|Multi-Policy||Discounts for having more than one policy with Liberty Mutual|
|Multi-Car||Discounts for insuring more than one vehicle with Liberty Mutual|
|Preferred Payment||For automated payments|
|Pay-in-Full||For paying off policy in one to two payments|
|Online Purchase||For purchasing online|
|Paperless Policy||Think electronic bills sent to your email|
These are all process discounts that make it a little bit easier on the company, such as bundling two plans, going paperless, and paying online.
There are extra discounts as well, that are not typically listed.
|Adaptive Cruise Control||Advanced safety feature|
|Claim Free||If you haven't had to file a claim|
|Daytime Running Lights||For safety, even during the day|
|Defensive Driver||Driver must be 50 or over|
|Driver's Ed||Driver must be under 21|
|Federal Employee||Because they have to deal with red tape|
|Forward Collision Warning||Advanced safety feature|
|Further Education||4-year degrees or higher; should offset those student loans|
|Lane Departure Warning||Advanced safety feature|
|Low Mileage||Because fewer miles means less likelihood of an accident|
|Married||Responsibility, he said|
|Membership/Group||For more than 14,000 organizations|
|New Address||When you move and keep your policy|
|New Customer/New Plan||Switching allegiances is a crafty move|
|New Graduate||Usually must be within 1 year|
|Newly Licensed||When a new driver is added to the plan|
|Newlyweds||Helps fund that honeymoon to the Caribbean|
|Occupation||Depending on what you do|
|Passive Restraint||Advanced safety feature|
|Recent Retirees||Usually must be within 1 year|
|Students & Alumni||For specific groups|
|Switching Provider||When changing companies|
|Vehicle Recovery||To get your car back when it's stolen|
|VIN Etching||So police can more easily identify your stolen car|
|Young Driver||Generally for a teen or minor|
– What Stands Out and What’s Missing
What stands out: Liberty Mutual has numerous policy coverages and 38 discounts, which means you could get a good deal on a high coverage insurance package.
What’s missing: Liberty Mutual doesn’t have a usage-based driving coverage (where the amount you pay for insurance is based on how much you drive). This hurts drivers who drive less frequently than others.
Canceling Your Policy
Have you ever gotten into an argument with a customer service representative, all while trying to cancel a policy?
It can lead to a migraine and a hoarse voice. You shouldn’t have to do that with your car insurance company. So, how does Liberty Mutual stack up?
– Cancellation Fee
As Liberty Mutual writes on its website:
The process and possible fees for policy cancellation varies according to the insurance regulations in your state.
Liberty Mutual doesn’t have a standard process for handling cancellations. It varies according to state, which can prove difficult if you’re trying to find information. In general, it’s best to speak with an agent, as they will know the state laws and how much it costs for you to cancel.
– Is There a Refund?
This, again, varies according to state regulations. In general, it seems that a prorated refund is issued, though that gets weighed against the cancellation fee.
– How to Cancel
Liberty Mutual, fortunately, makes it easy for you to cancel your plan by calling its customer service line at 1-800-290-8858. It’s always possible, as well, to speak with an agent to walk you through the process and give you an idea about the refund and cancellation fee for the plan.
– When Can I Cancel?
Anytime, which is good, but there are a couple of notes:
- Liberty Mutual does 12-month policies, which can lead to varying cancellation fees when you cancel
- Some customers have complained about Liberty Mutual’s cancellation process, with one saying it charged her four months after she submitted her cancellation request
- Some customers have also complained that the cancellation fee was hidden in the contract, so make sure to ask your agent
It’s important to note that all companies make mistakes, especially ones as large as Liberty Mutual.
However, considering its public perception problems, they don’t help.
How to Make a Claim
Claims are an unfortunate part of car insurance, both for the customer and the company.
The things that lead to claims—accidents, theft, a tree falling on your car—lead to lost money for the company, one of the many reasons why rates are the way they are.
But the last thing you want to deal with after an accident is with a mountain of paperwork.
That’s why looking at Liberty Mutual’s claim process can be beneficial.
– Ease of Making a Claim
The ease of making a claim makes all the difference between migraines and frowns—as you’re not likely to be smiling when making a claim.
Fortunately, there are three ways to file a claim with Liberty Mutual:
- Online: This seems to be Liberty Mutual’s preferred method. By submitting online, you can immediately start tracking your claim.
- Over the phone: Call 1-844-339-5299 and talk with a customer service representative to file your claim. They can help walk you through the process.
- Mobile device: In this case, you’ll use Liberty Mutual’s app, which, like the website, you can easily track your claim status.
For all of these avenues for filing, you’ll need the following information:
- Make and model(s) of the vehicle(s) involved
- Name and address of the driver
- Description of the damage
- Time and location of the incident
- Name and information of witness(s)
It helps to be able to upload or share photos of the incident, whether the damage to your car or the other.
Liberty Mutual makes it easy to upload photos through its app and website.
It’s also important to note that talking to an agent won’t result in a claim filed; claims adjusters and agents have two separate jobs.
But it can speed up the process, as an agent can call the claims department and get them to move a little quicker.
– Premiums Written and Loss Ratio
How many claims a company gets is just the start of the process.
The question then becomes, How many claims does the company pay out on?
That’s where loss ratio comes in.
Loss ratio is the number of claims that have been paid divided by the number of premiums.
It gives a strong impression on how many claims insurers are paying out and a glimpse on whether they are stingy with the claims that are coming in.
In the case of the loss ratio, numbers matter:
- Anything above one means the company is losing money.
- Anything below .5 means the company might not be paying out on many claims.
The sweet spot is between .6 and .8.
|Private Passenger Auto||9,942,667||10,756,228||11,585,976||11,776,654|
|Private Passenger Auto||0.62||0.67||0.67||0.62|
The good news is that Liberty Mutual is writing more premiums every year, both for private passenger auto and total lines. Its loss ratio is also in a good range, though there’s a little concern with the .5 numbers of total lines. But that doesn’t affect private passenger auto.
How to Get a Quote Online
Is there anything more frustrating than just wanting a simple car insurance quote and having to jump through some hoops with the company or agent?
Nowadays, getting a quote online is the most straightforward method, and usually only takes just a few minutes. Often, you’ll just need some basic information—name and address, type of vehicle, your previous insurance policy.
– First, Go to The Website
The web address is: https://www.libertymutual.com/
– Click on the Auto Button
This pulls up the quote box.
– Type In Your Zip Code
Click the Get My Price button and it’ll pull you to this page:
From there, you need to put in your information, along with your vehicle information, when you first got your driver’s license, your previous policy information, and more.
|Social Security Number||No|
|Driver's License||When Acquired Only|
|Vehicle Identification Number||No|
|Prior Insurance Information||Yes|
The good news is that you don’t need your social security number, the VIN number of your car, or any ridesharing admission.
After that, Liberty Mutual will run you through its discount section, coming up with everything from adaptive headlights to anti-theft device. From there, Liberty Mutual’s computers will churn and give you a quote.
Design of Website/App
With more and more people finding information about companies through the Internet, it makes sense that a company would invest in its website.
Especially a company as big and diverse as Liberty Mutual. So, what is the navigation like on the website? Is it easy to use and intuitive?
Let’s take a tour starting with the homepage.
From there, to access insurances, you hover over the shop insurance button. It pulls up this page:
From there, to get to auto insurance, you click Car, which brings up this page:
The first thing you see is the quote box, which makes sense as that’s what a good amount of people are there for and what makes Liberty Mutual money.
A quick scroll down shows:
There you find the links to the discounts, including the online purchase and the RightTrack.
Overall, the site is very appealing visually, with some bold yellow colors (part of Liberty’s color pattern) and some soft grayscale or easy-on-the-eyes images.
It’s intuitive to navigate, with sections clearly laid out and information fairly available.
If you have trouble, there’s a search box you can use by clicking on the magnifying glass at the top right. It brings up this:
And you can check out its Help page:
The only thing?
It’s hard to forget the Emu while navigating due to the colors.
Now, how does this compare to the app?
The Liberty Mutual App is highly rated on the iOS store with a 4.8 out of 5 rating from 27,000 reviews.
A quick look at the app shows all the features. You can:
- File a claim
- Ask for roadside assistance
- Pull up ID cards
- Look at your policy in detail
- Pay your bill
Rating-wise, the Android version is a little different.
It gets 4.2 stars out of about 4,000 reviews.
Viewers vacillate between highly complementary and highly critical:
Jill Weaver (5-star review)
Easy to use. Everything is at your fingertips. Highly recommend Liberty Mutual.
Robert Ancrum (5-star review)
so far so good. easy app to navigate thru, very clear information, and time efficient.
Bonnie Ray-Schmidt (1-star review)
I can’t access anything on this app. As soon as I log on, it sends a feedback message and then it freezes. The app is as worthless as their customer service line.
Overall, however, they are highly complementary.
Liberty Mutual has an additional app for its RightTrack driving program.
The RightTrack program uses the app (and a device placed on your windshield) to track certain aspects of your driving behavior:
- How fast you accelerate
- How hard you brake
- What times of day you drive
- How many miles you log
The app is supposed to be able to intuit all those behaviors.
However, sometimes there are issues.
The app on iOS is rated 3.7 out of 5 from 2,200 reviews.
While most reviews were complimentary, there were a few issues.
safe liberty driver (3-star review)
Since it uses GPS, it knows exactly where you are so I would think it should be able to realize you are speeding up because you are supposed to. I would get dinged even if it was a change of 10mph on the ramp.
perezalo (1-star review)
Like many reviewers mentioned already, device is very, very sensitive. Which, like one of the reviews said, it actually made driving less save to not get dinged with a bad drive.
The app fared a little better on Android.
Thilo Hauser (1-star review)
penalized at about day 10 by stopping for a squirrel running across the road and one ride that ended 5 past midnight.
Bryan bgambles (3-star review)
I work a 12 hour shift, it starts at 2:30am which is the time you suggest not driving. I cannot avoid driving at that time.
Like all of these apps, they are designed to prove safe driving but struggle with uncommon occurrences or things that are inevitable.
Pros and Cons
After all this information, it’s time to boil down Liberty Mutual to some pros and cons.
|Very comprehensive coverage options||Prices are steep|
|Tied for the lead in discounts per insurance company||Not all discounts are made available in the initial online quote|
|Big, stable company with a strong financial rating||Used to be full of questionable executive practices and excess spending|
|Increasing in premiums written every year||Spending hundreds of millions of dollars on advertisement every year|
The Bottom Line
Liberty Mutual is a strong, secure company with good financial ratings.
It has been around since 1912, grown significantly, and has become the fifth-largest property and casualty insurance company in the world.
You can count on Liberty Mutual to be around.
However, there are issues. Its average premiums are over $1,000 higher than its nearest competitor. Customers have had bad experiences while trying to cancel their policies.
If you want a large, stable company with many options and don’t care about the price tag, Liberty Mutual may be for you.
But if not, there are plenty of competitors out there, all cheaper and possibly better as well.
What is Liberty Mutual’s Accident Forgiveness?
Liberty Mutual’s Accident Forgiveness is additional coverage that prevents rates from going up after an accident. Generally, only drivers with five clean years—no accidents, no violations—can qualify.
Is the Liberty Mutual Emu real?
Sort of. The Liberty Mutual Emu is actually a compilation of different emus used in the initial filming process. That compiled emu is then blended with CGI, which is what the viewer sees in the commercials.
Who owns Liberty Mutual?
Because Liberty Mutual is a mutual company, policyholders are the technical owners of the company, though they do not generally receive dividends. Often the benefits for policyholders are reduced future premiums or paid-up additions.
Are Liberty Mutual and Safeco the same company?
In 2008, Liberty Mutual acquired Safeco for $6.2 billion, which has led to billions of revenue for Liberty Mutual. The main difference between them seems to be the agents and the rates; home and auto often vary depending on each entity in the same area.
Alright, that’s it! You now should be ready to make an informed decision about whether Liberty Mutual is the right company for your insurance needs. Full eyes, clear hearts. Happy driving.
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