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|Liberty Mutual Overview||Details|
|Current Executives||David H. Long - Chairman, President, and CEO|
|Number of Employees||50,000|
|Total Assets (2017)||$142,502 million|
|HQ Address||175 Berkeley Street
Boston, MA 02116
|Premiums Written (Auto, 2017)||$11,585,976|
|Best For||Drivers with good credit, those that prefer a large, financially stable company|
In business for more than 100 years, Liberty Mutual is among the largest property & casualty insurance companies in the United States.
With the Statue of Liberty as their symbol and logo, Liberty Mutual positions itself as an all-American multi-line insurer that can help you with all of your insurance needs. Despite the American symbol, the company has global operations with dozens of subsidiaries.
Liberty Mutual employs more than 50,000 people, sits at number 68 on the Fortune 500 list, and was the sixth largest auto insurance company in the nation for 2017. But are they a good choice for you?
There are a lot of insurance companies out there, and they all make big promises. There is a lot of information to dig through when it comes to choosing a company to protect you on the road.
These two things combine to make researching insurance companies a long, time-consuming process. It would be a lot easier to read concise information from a trusted, unbiased source, right?
You’re in the right place. We’ve gathered everything you need to know about Liberty Mutual Insurance and simplified it so you can decide if they’re a good fit for your needs.
Keep reading for details on Liberty Mutual’s ratings and customer complaints, the coverage they offer, and a look at what their policies cost.
Liberty Mutual Ratings
You have probably heard of AM Best, J.D. Power, and the other names on the list below. But what do they rate companies for and what do their ratings mean?
Take a look at Liberty Mutual’s ratings from the top consumer and financial reporting agencies, and then we’ll go over what they mean to you.
|Better Business Bureau||A-|
|NAIC Complaint Index||6.27|
|JD Power||Claims Satisfaction 2/5
Shopping Study 3/5
|Consumer Affairs||2 stars/328 reviews|
First up is the AM Best rating of A, or excellent. This rating is for financial stability, which is important since it’s a measure of a company’s ability to pay claims and stay solvent. Liberty Mutual scores very well on this front.
The Better Business Bureau gives companies a rating based on a combination of factors that include customer complaint volume, resolution of complaints, government or court actions against the company, and years in business.
Liberty Mutual’s grade is a little lower than the top ranking of A due to two recent government actions against the company.
The government actions were in San Diego, completed in 2016 and in Massachusetts, completed in 2018. In both cases, Liberty Mutual was ordered to pay a settlement.
The National Association of Insurance Commissioners (NAIC) collects complaints data for companies across the country. Liberty Mutual’s complaint ratio of 5.43 is well above the national median, which is 1.16. That means Liberty Mutual has had more complaints compared to their market share than the average.
J.D. Power might be the most recognizable name on these ratings, as they’re well known for their consumer surveys and for handing out awards to companies that top the list.
Unfortunately, Liberty Mutual doesn’t come close to winning any awards. Of the two national surveys, they earned a below average ranking of 2/5 for claims satisfaction and an average rating of 3/5 for insurance shopping.
J.D. Power also performs regional surveys of overall satisfaction with car insurance companies, and those ratings can vary quite a bit.
Next, we have the Consumer Reports score for Liberty Mutual, which is an 88 out of 100. That’s considered “Very Good”, and is on par with competitors like Nationwide and Allstate, both of which also scored an 88.
And finally, Consumer Affairs, which is a consumer complaint website. In the past year there were 328 reviews of Liberty Mutual auto insurance. The overall rating is a two out of five, with 89 five-star ratings and 141 one-star ratings.
Overall, Liberty Mutual scores very well on financial ratings but underperforms on most of the consumer satisfaction ratings. There is definitely some room for improvement.
Liberty Mutual was founded in 1912 as a worker’s compensation insurance company under the name Massachusetts Employees Insurance Association. In 1914 they started writing auto insurance and took on the name Liberty Mutual in 1917.
Over the following decades, Liberty Mutual expanded beyond Massachusetts and acquired a number of other companies, including Safeco in 2008. They operate in 20 different countries in addition to the United States.
Liberty Mutual continues to operate as a mutual company to this day, which means it is owned by the policyholders rather than by shareholders.
In addition to car insurance, Liberty Mutual writes a variety of specialty vehicle coverage including motorcycles, home insurance, life insurance, business coverage, umbrella insurance, and more.
In 2015, Liberty Mutual had a market share of 4.97 percent of the total private passenger auto insurance business in the United States.
In 2016, that share climbed to 5.01 percent, and then stayed steady in 2017. That ranks Liberty Mutual at number six nationwide for market share. While they saw no growth between 2016 and 2017, they didn’t lose any ground either.
– Sales Approach
Liberty Mutual sells its policies through local agents as well as online and over the phone.
Agents that sell Liberty Mutual products are independent rather than captive, which means they can sell products from multiple different companies.
Unlike companies like Allstate or State Farm, Liberty Mutual’s agents don’t work solely for one company. Another difference is that Liberty Mutual sells insurance directly to those that prefer not to work with an agent.
That means you have the choice – buy your insurance through an independent local agent, or buy direct either online or from a sales representative over the phone.
– Liberty Mutual Commercials
Liberty Mutual isn’t known for a memorable catchphrase or a famous mascot – although they did recently introduce their “Limu Emu” in new ad campaigns – but they do have a common theme and a very recognizable landmark.
They’ve been using the backdrop of the Statue of Liberty for several years in their television ads, a tie-in with their name and logo, and have both simple commercials that feature people talking about how much money they saved and funny commercials as well. This follows a general trend in car insurance advertising towards humor.
The main focus of their marketing is on the “Only Pay For What You Need” angle, which advertises Liberty Mutual’s policies as customizable to the specific needs of each driver. We’ll take a closer look at the coverage options they offer later to see just how personal the options really are.
– Community Service
Liberty Mutual gives back through both corporate initiatives and employee giving, as well as volunteer hours. The company boasts a total of $52 million in total corporate and employee giving.
The Liberty Mutual Foundation was created in 2003 and provides grants in three main areas: accessibility programs for the disabled, enrichment and education programs for families living in poverty, and homelessness programs.
The Liberty Torchbearers program is designed to help employees give back, providing volunteer opportunities and also matching 50 percent of all employee donations to nonprofits. The Serve With Liberty program takes place in the first two weeks of May and sees about half of the company’s employees engage in community assistance efforts.
The Safeco Insurance Fund, named for Liberty Mutual’s major subsidiary, also provides grants in the same three main areas of focus as the Liberty Mutual Foundation.
– Liberty Mutual Into The Future
Liberty Mutual is hanging on to a pretty solid position in terms of market share and has the best of both worlds approach to sales with agents and direct buy options.
Their financials are solid and there’s no reason to think this company will have any difficulty in the future.
– Employee Demographics
According to Payscale, Liberty Mutual’s median employee age is 34, with an average tenure of 3.8 years at the company. 72 percent of employees report high job satisfaction. The company ranks at an overall 3.4 out of five for employee satisfaction, which is the same as top-two insurers GEICO and State Farm.
More than 4,000 reviews from employees on Glassdoor add up to an overall rating of 3.3 out of five, similar to the Payscale rating. 52 percent of the reviewers would recommend working at Liberty Mutual to a friend.
According to Great Places to Work, 77 percent of employees surveyed reported high job satisfaction. The employee age group research shows that 15 percent of employees have been with the company for more than 20 years.
– Awards and Accolades
Liberty Mutual has earned a number of awards and made many “best of” lists, too.
For 2018 the Human Rights Campaign awarded Liberty Mutual their 100 percent Corporate Equality Index designation for LGBTQ equality in the workplace.
Forbes named Liberty Mutual to their 2018 lists of Best Place to Work for New Grads as well as Best Places to Work for Women. They also counted Liberty Mutual about the Best Large Companies and Best Employers for Diversity.
Fortune and Great Places to Work also put Liberty Mutual on their Best for Diversity list in 2017.
Among their other accolades is the title of 2018 Digital Workplace of the Year, and J.D. Power’s Commercial Agent Satisfaction Award.
Cheap Car Insurance Rates at Liberty Mutual
Let’s start this section by stating that Liberty Mutual doesn’t advertise itself as a low-cost insurance company exactly. While some of their advertisements have focused on saving money, for the most part, the company isn’t positioned as a budget insurer.
Insurance rates vary based on a lot of factors, which means Liberty Mutual may be a good value for one driver and incredibly expensive for another.
In the next section, we’ll compare Liberty Mutual to other companies, look at average rates by state, and see how various factors affect the company’s premiums.
– Liberty Mutual Rates By State
Here’s a look at how Liberty Mutual stacks up in the 43 states where they offer car insurance coverage. Of those states, Liberty Mutual’s rates come in lower than average in only seven.
When Liberty Mutual does come in below average, they really make a show of it. In Montana, they have their cheapest rates at an impressive 142 percent below average.
The most expensive states to choose Liberty Mutual for your car insurance are Midwest neighbors North Dakota and Minnesota and Delaware, with rates more than 67 percent above average in all three states.
– Liberty Mutual Average Rates Compared to Top 10 Companies
Liberty Mutual ranks among the top ten companies for car insurance in the nation. Here’s a look at how their average rates compare to the other nine companies in that list.
|District of Columbia||$6,468.92||–||–||$3,692.81||–||$4,848.98||$4,970.26||$4,074.05||–||$2,580.44|
The rates for each company vary a lot by state, with Liberty Mutual a good value compared to other companies in some places and not such a great deal in others.
– Rates By Commute
Longer commutes are generally seen as resulting in higher insurance rates, although not all companies raise rates a whole lot based on commute length. As you can see below, there is a difference at Liberty Mutual, but it’s not a huge increase.
|Commute Type||Liberty Mutual Average Rate|
|10-mile, 6,000 miles annually||$5,995.27|
|25-mile, 12,000 miles annually||$6,151.63|
– Rates By Coverage Level
The main reason people choose to carry a lower level of coverage on their car insurance is the cost. Here’s a look at the average rates from Liberty Mutual for three levels of coverage.
|Coverage Level||Average Liberty Mutual Rate|
– Rates By Credit History
Credit is one of the factors insurance companies can use to calculate your rates. A driver will poor credit will usually pay the highest rate. At Liberty Mutual, the average rate doubles between good credit and poor credit, with fair credit falling right about in the middle.
|Credit History||Liberty Mutual Average Rates|
– Rates By Driving Record
A clean driving record is always going to earn you the lowest rate, no matter which company carries your insurance. But each company weights things like a ticket or an accident differently.
Below are Liberty Mutual’s rates for several common situations. At Liberty Mutual, a DUI will cost you the most, while a speeding ticket carries the lowest rate increase.
|Driving Record||Liberty Mutual Average Rate|
|1 Speeding Ticket||$5,701.26|
Liberty Mutual writes full coverage auto insurance policies with a lot of options. They advertise their approach to insurance as being a “pay for only what you need” customized policy, but selecting from add-ons and endorsements is the norm at most insurance companies.
In this next section we’ll take a look at what Liberty Mutual offers for coverage and how, if at all, it differs from the other options out there.
– Types of Coverage
Liberty Mutual’s auto policy starts with the basics – liability coverage to meet your state’s minimum requirements. Depending on your state, this will include some or all of the following:
- Bodily Injury Liability
- Property Damage Liability
- Personal Injury Protection (PIP)
- Medical Payments (MedPay)
- Uninsured/Underinsured Motorist (UM/UIM) Bodily Injury
- Uninsured/Underinsured Motorist Property Damage
Your liability package can include just what the state requires, or you can add on the options you want to provide extra protection. After choosing liability, Liberty Mutual allows you to choose from several other options that are designed to provide extended financial protection for your car and more. Here’s a list of the options.
- Towing and Labor
- Rental Car Reimbursement
- Loan/Lease Gap Protection
- Original Parts Replacement
- New Car Replacement
- Better Car Replacement
Most of these are options we see from other insurance companies, although Better Car Replacement is unusual. This coverage replaces a totaled car with one that is one model year newer and has 15,000 fewer miles.
It differs from New Car Replacement, which only applies to cars under a year old and with less than 15,000 miles.
Overall, a Liberty Mutual policy is built in much the same way as most other insurance companies; you can pick and choose the coverage you need and leave off what you don’t.
Worth noting about Liberty Mutual’s coverage is that they guarantee your rate for 12 months.
While a six-month policy with possible rate changes at the time of renewal is standard at most companies, you won’t see rate increases for 12 months with Liberty Mutual.
Liberty Mutual offers bundles for their auto and home insurance policies that will earn you a discount on both. The bundling doesn’t only apply to homeowners insurance, but also to renters and condo owners.
We found no indication that there are bundling discounts for any of the other types of insurance offered by Liberty Mutual.
– Area of Operation
Liberty Mutual writes car insurance in 43 states. Currently, you can purchase coverage in every state with the exception of Arkansas, Arizona, D.C., Louisiana, New Mexico, South Carolina, Texas, and Virginia.
– Additional Options
Liberty Mutual has some other options that can be added to your car insurance policy for extra benefits and savings. The availability and details can vary from state to state.
Accident Forgiveness was a big trend in car insurance a while back, and most major insurers offer it today. Liberty Mutual offers this coverage only to those that have been accident-free and have had no violations in the past five years.
This applies to current customers and new ones, as long as they meet the criteria. Accident Forgiveness isn’t available in California.
Liberty Mutual Deductible Fund is an unusual option that acts as something of a savings account for your deductible. Each year, you can contribute $30 to your fund, and the company will kick in another $70, for a total of $100.
The fund can continue to grow each year, and in the event of a claim where you are responsible for paying a deductible, the fund can be used to pay it either in full or up to the amount you have available.
So, if your deductible is $500 and you have contributed for five years, it will be paid in full. You’ll have put in $150, and Liberty Mutual will have paid the rest. Or, if you look at it from another angle, you will have put $150 in a savings account, and Liberty Mutual has reduced your deductible to that amount.
Lifetime Repair Guarantee is Liberty Mutual’s repair program that guarantees the work on your car for as long as you own it if you have the repairs done through one of their approved shops. This is included automatically with every policy.
Teacher’s Auto Insurance is a special program for teachers that provides additional coverage at no extra cost. the program adds vandalism coverage with a $0 deductible if the damage happens on school property, $2,000 in coverage for school-related personal property, and a $0 deductible for collisions when driving on school business.
RightTrack is Liberty Mutual’s usage-based program. It uses a small device that attaches to the car’s windshield and connects with a mobile app. The device records driving habits such as hard braking, rapid acceleration, and time of day driven.
After a 90-day monitoring period, a discount is calculated and applied to your policy. Liberty Mutual advertises a discount of up to 30 percent for the program.
Liberty Mutual also offers a Vehicle Service Plan, which is essentially an extended warranty for your car.
As you can see from the table below, Liberty Mutual has a lot of available discounts – but they don’t provide much information in terms of how much you can actually save. There’s no amount listed for most of the discounts.
|Discount||Percentage Off (up to)||Details/Requirements|
|Advanced Safety Features||Not stated||Vehicles with anti-lock brakes, electronic stability control, adaptive headlights|
|Anti-theft Device||Not stated||Vehicles equipped with qualifying anti-theft device|
|Alternative Energy||Not stated||Hybrid or electric vehicles|
|Homeowner||Not stated||Own a home|
|Early Shopper Discount||45%||Sign before previous policy expires|
|Military||Not stated||For active, retired, or reserve members of the military|
|Good Student||Not stated||Maintain a B average or better|
|Student Away||Not stated||Students away at school without a vehicle|
|Accident Free||Not stated||No accidents|
|Violation Free||Not stated||No violations on record|
|RightTrack||30%||Must install and use the RightTrack device for 90 days|
|Paperless Policy||Not stated||Sign up for online policy management|
|Full Pay||Not stated||Pay full term premium up front or in two payments|
|Preferred Payment||Not stated||Enroll in automatic payments|
|Online Purchase||12%||Purchase your policy online|
|Auto and Home||Not stated||Have both auto and home in force with Liberty Mutual|
|Multi-car||Not stated||Insure more than one car with Liberty Mutual|
|Group membership||10%||Members of one of 14,000 groups and alumni associations, as well as employees of affiliated companies|
Liberty Mutual is one of a handful of major insurance companies to offer a military discount and also stands out for their green car discount.
We didn’t see any discounts listed on the company website for 55-plus drivers or for defensive driving courses. It’s possible these are offered by not listed, but leaves us to wonder why they wouldn’t provide that information up front.
How To Make a Claim
Before we look at the details of Liberty Mutual’s claims process, let’s take a moment to talk about how they’re doing in terms of losses. Below you’ll see a three-year comparison of Liberty Mutual’s premiums written and loss ratios.
|Liberty Mutual Premiums and Loss Ratio||2015||2016||2017|
|Direct Premiums Written||$9,942,667||$10,756,228||$11,585,976|
A loss ratio tells us how much a company is paying out in claims compared to the amount of money they make on premiums. You don’t want to see that ratio too high, because it could mean financial trouble for the company.
A number over 100 percent means they are paying more than they take in, which could make it hard to pay claims in the future.
A number that’s too low, on the other hand, indicates a company that isn’t paying out claims at the rate that they should be.
Liberty Mutual’s loss ratio increased between 2015 and 2016, but then stayed steady into 2017. The industry total loss ratio for 2017 was 68.79 percent. That makes Liberty Mutual about average. That means they pay out on claims right about on par with the industry as a whole.
– Filing a Claim
Liberty Mutual has several methods available for filing a claim.
- Online, which appears to be the preferred method as the website puts it front and center and encourages it
- Over the phone by calling 1-844-825-2467, 24/7
- Using the mobile app for Android or iPhone
Liberty Mutual’s online claims filing system is for customers only – if you’ve been involved in an accident with a Liberty Mutual insured the website instructs you to contact your own insurance company rather than using their filing system.
You will need to log into a Liberty Mutual account on the website to file a claim with the exception of an auto glass claim. Glass-only claims are handled through a different system.
Liberty Mutual’s Claims Valet Service is available to all policyholders. After an accident, the valet service will get a rental car to you and take care of getting your car to the repair shop.
How To Get a Quote Online
Liberty Mutual allows customers to complete the entire process from quoting to buying a policy online.
From the main page of the website, you can select the type of quote you’d like to obtain, and they’ll also give you the option to get a bundling quote by adding a home policy to the quote as well. The first step is to enter your zip code.
On the next page, you will need to enter your full home address. That’s followed by your name, date of birth, and email address.
With this information, Liberty Mutual will search for vehicles associated with your name and address, and auto-fill the vehicle information in the next section. Select the vehicles from the list, or add new vehicles manually. You’ll then answer basic questions about the vehicle.
The next step covers the drivers, and you’ll answer some basic questions here as well. It’s at this step that the system will ask you for a phone number. It’s likely that this number will be used to follow up on the quote and attempt to sell you a policy, which might deter some insurance shoppers looking to avoid solicitation.
The next steps will ask a few more basic questions regarding previous insurance and then lead to the offer of signing up for the Right Track program. After that, the system will provide you with a quote. On the final quote page, you can adjust things like deductibles and coverage options to change your rate and protection level.
The quote system is easy and smooth and provides a lot of options to adjust the final price as well. It’s far from the most invasive quote system we have seen in terms of personal information requirements.
|Driver's License Number||Not required|
|Social Security Number||Not required|
|Vehicle Identification Number||Not required|
Liberty Mutual’s Website and App
Liberty Mutual has a well-organized website that provides easy access to information about products and services, quotes, claims information, and company information.
In addition to products and services, they have a section dedicated to helping people with common problems called Master This. It includes helpful information on basic car repair, choosing a mechanic, and a long list of other subjects.
The resource section of the site also includes calculators to help you determine what coverage you need and what limits you should consider.
Mobile devices are a major part of most people’s lives these days, and insurance companies are in a rush to take advantage of this technology. Not too long ago, a mobile app was an extra perk offered by a handful of companies but rarely used.
Now, it seems that a sleek mobile app is a necessity for any big-name company trying to keep up with the competition. Liberty Mutual is no different.
The Liberty Mutual mobile app does most everything its website can, plus a little bit more.
– Device Availability
The app is available on any Apple or Android device, including your iPhone, iPad and tablets supporting Androids platform.
User experience will be similar across devices.
Android – Download Here
iOS – Download Here
Some insurance apps are designed for a wide audience, marketed to anyone who might want to download them. Liberty Mutual is much more tightly focused on the needs of existing customers.
The app allows you to do most of the things you would do from the customer portal on the main website, including:
- Paying your bill
- Viewing your policy and ID cards
- Updating your information
- Swap to paperless billing
- Check on the status of a claim
- Report a new claim
There’s also a few mobile-only options that you may find useful:
- Sign up to receive text message notifications about your claim status
- GPS for mapping your location
- Gather contact information and take damage photos after an accident
- Locate nearby repair shops
As you can see, most of the app’s features are based around claims. These features are most useful in the event you are reporting a claim right from the scene of an accident since you’ll be able to record information, take photos and submit them timely.
–Google Play / iTunes / Amazon Reviews
Google Play users give it a 3.6 review, which is pretty consistent with its results from other app stores.
There are a few bugs commonly reported with the app, the most frustrating of which being that it will often lose information, causing you to need to re-enter some things. If this bug hasn’t been dealt with, it’s a crippling flaw as no one who’s just been in an accident needs the added frustration of an app that doesn’t work.
Other users say that the app runs slowly or freezes intermittently at the load screen, often after several times of it working just fine.
These bug complaints were still being made as recently as November 2014, for the latest version (184.108.40.206), so they are likely still an issue for at least some users.
- Easy access to your policy and proof of insurance
- Ability to file a claim
- Ability to collect all necessary claim information like location, contact info, photos etc.
- Ability to pay your bill on mobile
- App has reports of lag
Liberty Mutual has gone a bit “app crazy,” offering seven apps in total. Aside from its primary mobile app, it also offers:
- CarZen: A car-shopping app for the iPad, allowing you to research a new vehicle before buying one.
- Training Zone: A sports-game app with skiing and soccer mini-games. You can share your results with Facebook friends and earn various coins and upgrades like you would with any other casual social game.
- HomeGallery: A personal inventory app that allows you to keep track of all of your belongings in the event you need to file a homeowner’s claim.
- FuelQ: An app that monitors your driving habits and provides fuel efficiency analysis and tips for reducing fuel costs.
These apps are available to anyone, not just Liberty Mutual customers, and they’re clearly meant to create some additional buzz or interactivity with the company. By and large, though, they don’t offer anything that you couldn’t get elsewhere.
It seems it would make more sense if the HomeGallery app were bundled with the regular mobile app to add some extra usefulness, or even if the mini-games from Training Zone were incorporated in the main app to get people to use it more often. Having so many separate apps to potentially take up space on your device just doesn’t make sense from a customer perspective.
Comparably this Liberty Mutual app performs at least as well if not better than most other insurance applications we have reviewed. It provides useful functionality and added features not available on the website. In the event of an incident, the Liberty Mutual app seems as though it provides true value. Aside from their main insurance and claims app, the others seem gimmicky while providing no tangible benefit. Stick with the one Liberty Mutual app and you should be just fine.
Pros and Cons
Now that we have gone over Liberty Mutual as a company, looked at rates and coverage, and examined discounts and claims, what’s the bottom line? Here’s a breakdown of the some of the main pros and cons of selecting Liberty Mutual for your car insurance.
|Good list of discounts that are easy to qualify for||Above average pricing in most states, very expensive in some.|
|Choice of working with an agent or direct buy||Consumer satisfaction ratings are not as high as competitors|
|Easy online quoting and buying process||Limited bundling options|
Frequently Asked Questions (FAQ)
We have covered a lot of ground, but you may still have questions about Liberty Mutual. Below you will find some answers, and if it’s not covered here, check out Liberty Mutual’s own FAQ page.
Does Liberty Mutual offer rideshare insurance? No, however, Liberty Mutual will not cancel you if you drive for a rideshare company; they simply won’t cover the vehicle during the time that it’s being used for that purpose. They also require that you have more than one car on the policy, and not only the vehicle used for ridesharing.
Can using RightTrack increase my rates? No. Although some usage-based programs can result in increased premiums based on the data gathered, Liberty Mutual uses it only to calculate a discount.
How do I know if I qualify for a group membership discount? Liberty Mutual offers discounts of up to 10 percent to members of certain groups, employees of affiliated companies, and alumni associations. To find out if you qualify, you’ll need to speak with a sales representative, since there’s no list online.
For a list of companies that we recommend, visit our Best Insurance Companies page.