In this post, we'll review Liberty Mutual and take a look at the positive characteristics of their policies, premium costs, and claims process to help our readers make a more informed decision.
What is Liberty Mutual?
Liberty Mutual is located in Boston, Massachusetts and serves millions of insurance customers across the United States. Many customers of Liberty Mutual report that their application process is quick and easy and that it is not difficult to get approved.
The Application Process
Their site attempts to inform their customers about the application process and they offer beginner-friendly guides and helpful resources that aid users in completing the application process. In short, Liberty understands that people are busy and they seem to exemplify what is meant by user UX and creating a positive customer experience.
The Claims Process
While the applications process seems to be quick and effortless, the claims process does not live up to this standard as easily. Some customers have complained that you may not receive the same level of support in filing claims that you do as a new customer. They seem to treat new sales as more important than customer service.
While this is certainly not a problem that is specific only to Liberty Mutual, it is a problem if you are filing a claim.
This is where Liberty Mutual shines. They have some of the cheapest auto insurance rates of any other U.S. insurance company. They have millions of customers, which may be why they can offer such excellent, low rates. It might also explain why the claims process is so slow, and why Liberty Mutual spends more time on new sales than customer service.
Is it worth it to keep your rates low?
There are opposing views on this topic.
On one hand, you want to get the best possible rate you can get to save money year-round on your insurance premiums. Even customers who have a bad driving record have sometimes reported that they can get insurance at a fair rate from Liberty.
On the other hand, if you have a car accident and need repairs as soon as possible, you could wait for days or even a week or more to get attention for your claim, according to some users. This is a red flag when choosing an insurance company. The idea is that, you'll pay less per month but you're not really getting the service you need and isn't that what insurance is for?
However, when the claims department does get back to you, they usually pay claims as long as there is no suspicion of deception or insurance fraud on the part of the customer. So prepare to be able to offer proof of your accident if they ask such as police reports or pictures.
They go through the same claims process as most other insurers do, but it seems as though Liberty Mutual puts too much emphasis on new clients and not enough on current customers, which lowers the public opinion of them.
NerdWallet rates them at a 3.5 out of 5 due to this factor and the fact that they have close to the average number of complaints when compared to other similar insurance companies.
Despite some of the negative reviews, Liberty Mutual appears to have a good reputation overall and they have handled most (if not all) of the complaints filed against them.
They are a legitimate company, but it appears that they follow the saying, “You get what you pay for” with their lack of attention to customer service needs. This is their most common complaint. Customers state that it is hard to get in touch with them when they are needed and they are not as helpful as they should be with current customers.
Liberty Mutual Pros
Below are some of the most obvious advantages of using Liberty Mutual.
- They offer one of the lowest rates in the insurance business
- Easy and fast application process
- High acceptance rate
- Great policy offerings
- Tools to help you identify insurance gaps
- Solid company that is sustainable over time
The Glaring Negative
Sometimes a company shines so brightly with the other things they do that you hardly notice the bad part, until it's time to file a claim. Liberty Mutual has a reputation that is less than average when it comes to filing claims in a timely and professional manner. A study conducted by J.D. Power that focused on overall satisfaction from Liberty's customers indicated that they company ranked 21 out of 24 providers regarding claims processing.
This is a black mark on the company's way of doing business and even seems to communicate that they are far more interested in making sales to new customers than pleasing the one's they've got.
This is not a good message to send and it makes many customers drop the policy later, in favor of a slightly higher-priced surrogate which pays more attention to customer needs.
It might be interesting to attempt to contain Liberty Mutual at a non-traditional time, such as late at night or early in the morning. They state that they have “24/7 claims service.” If this is true, then they should not mind taking claims calls any time of day.
If you are interested in using Liberty Mutual as your primary auto insurance provider, it may be worth it to you to attempt to call them during this time and see if they are taking claims. If they are not, they need to take the “24/7 claims processing” sign off of their website.
Liberty Mutual Discounts
Liberty Mutual offers a number of discounts, which helps keep your coverage low. Check out the following discounts they have available right now.
- New customer discount
- Multiple car discount
- Teen driver discount
- Good student discount
- Anti-theft device discount
- Newly married discount
- Retirement discount
This is a long list of discounts to offer, so you should inquire about any of these that you think you qualify for when applying for insurance with Liberty Mutual.
A large number of discounts offered by Liberty Mutual may be why they are considered one of the most affordable insurance companies around for auto insurance.
It's interesting to note that the confidence of their rates is not as high with housing and other types of insurance as it is with auto insurance.
What the Experts Think
J.D. Power's 2017 Auto Claims Satisfaction Study gave them an 841/1,000 rating, which is below the industry average. Their rating with Moody's is an A2 and A.M. Best, the most influential rating system for businesses other than the Better Business Bureau, rated them at an “A” for financial strength.
So, what are the conclusions? Liberty Mutual is a solid financial company, meaning that they have the money to pay all their claims. They likely have a solid reserve that goes above and beyond what is required (per federal law) to keep insurance companies solvent.
So, if they can afford to pay the claims, why aren't they paying them?
The truth is they are paying most claims but the process takes so long and is so frustrating for the customer that many give up and pay the bill themselves, then go to another company that will pay more attention to their needs.
This makes Liberty Mutual look bad, despite the general great deals, discounts, and product offerings that they boast about.
Many studies have been done on customer loyalty. Most of the results indicate that great customer service is at the top of the list when trying to get and keep customers loyal to your brand. In this department, Liberty Mutual is lacking.
Who most likes Liberty Mutual?
Liberty Mutual is most popular with teens and families since they seem to offer the most discounts for these demographic groups. Older people can also get good rates but they often find the claims process not worth the hassles once they get the policy in place.
Liberty Mutual's policies are legal and valid according to most insurance standards, but they fail to follow through on their promise to provide excellent customer service.
If saving money if your priority, or if you are one of these people who prefers never to think about insurance once you get it in place, you would probably be fine with Liberty Mutual. However, you may rethink things the day you have a fender-bender, if the opinions of some of their customers rings true and they make claims one of the last items of business they focus on.
After all, an insurance company is about claims. That's what you pay for as an insurance customer. You make a monthly insurance payment believing that, when you need help after an accident, your insurance company will be there for you and you won't have to wait days for a reply.
No one wants to think about having an accident, even a small one. But if you do, you want to be able to depend on your car insurance company paying attention to what you need to complete your claim in a timely manner.
This is something that Liberty Mutual should definitely work on, if they want to rise to the level of some of their chief competitors in the insurance market.
Liberty Mutual is a legitimate company with a healthy financial reserve. There would not be any worries as to whether or not they could pay a claim should you have an accident. Their friendly, courteous, and quick application process makes it easy to qualify and receive coverage from Liberty Mutual for your auto insurance needs. The online process is so simple a child could use it, according to many users.
The problem is that the claims process is not nearly as smooth or as positive as the initial application process. This creates the impression that Liberty Mutual is more interested in recruiting new customers than paying attention to the ones they already have.
This defeats the purpose of having insurance in the minds of many customers because you pay each month for the peace of mind that you will get knowing your claims paid in a timely manner. Timing is important in such matters.
Liberty Mutual doesn't seem to think that the timing is as important, but their customers do. This is one area in which this company is missing the boat when it comes to good business practices. This is probably why they have a 3.5 out of 5 rating rather than a five. It is the primary aspect of the business that is lacking.
Creating Customer Loyalty is Missing
Customer loyalty is based on good customer service and if you want that you may not get it from this company. However, if you're willing to wait in the claims process and you can find a ride to work while you're waiting for them to call you back or wait for their assessor to contact you, it might be worth it to you to at least apply for this company's insurance.
The fact is Liberty Mutual has one of the lowest rates for car insurance in the whole United States. This says alot and perhaps the company CEOs think that people are willing to wait on them since their rates are so low. Personally, I think an insurance company should treat each customer's needs as the most important thing no matter whether it is a claim, a change in their policy, or just an update to their file. Having to wait too long for customer service puts a black mark on this otherwise stellar company that stands tall as one of the leaders of auto insurance that is affordable to everyone.
Final Analysis: It's a Good Company if You're Patient
This being said, it is still a good choice for someone whose emphasis is to save money where customer service is not as important to them. Teenagers, new drivers, families and many other groups like Liberty Mutual because they can get insurance for less than it costs for a fancy meal in a restaurant. You might want to fill out the application form and speak to an agent voicing your concerns about the customer service issue and see what they say.
We hope this has been an informative blog that will show you both the good and bad aspects of Liberty Mutual Auto Insurance and that it will help you make a more informed decision when looking for a car insurance provider.
Make sure to read up on other insurance companies and look at Geico reviews and Lemonade Insurance for home and renters insurance. For auto, you can also consider The General auto insurance, Farmers auto insurance, and Allstate car insurance.
General Liberty Mutual FAQ
If you have any general questions about Liberty Mutual or its services, take a look at some of the questions below.
What is Liberty Mutual?
Liberty Mutual is an insurance firm that offers a wide range of insurance services. The company is one of the largest insurance companies in the United States.
Is Liberty Mutual a good insurance company?
While there are a number of complaints about Liberty Mutual, as well as some government actions against some of their offices, Liberty Mutual does have an A- rating with the BBB. As one of the largest insurance firms in the country, they do offer some excellent services — just make sure to keep up to date with consumer sentiment.
Where is Liberty Mutual insurance headquarters?
At present, the Liberty Mutual insurance headquarters is in Boston, Massachusetts. The company does have offices throughout the country as well.
Who is Liberty Mutual blah blah girl?
The blah blah girl in the Liberty Mutual commercials is an actress named Lily Rains. She's also an actress in a number of television shows.
Does Liberty Mutual have renter's insurance?
Yes. Liberty Mutual does offer renter insurance to its customers — it has extensive coverage available.
Does Liberty Mutual offer rideshare insurance?
At present, Liberty Mutual does not offer rideshare insurance to its customers. Fortunately, many other large insurance providers do.
How much Does Liberty Mutual accident forgiveness cost?
It is included in many of the company's insurance policies. Just make sure to ask if you have it included in your particular policy — there are conditions.
Does Liberty Mutual have life insurance?
Yes. Liberty Mutual does currently have some of the best term life insurance policies for its clients. You can take advantage of wide range of coverage levels.
Is Liberty Mutual a public company?
No. Liberty Mutual is not a publicly traded company. It has a complex ownership structure that actually means that it is owned by its policy holders. You see this with other large insurance companies around the country.
Is Liberty Mutual and Safeco the same?
Safeco is a subsidiary of Liberty Mutual. While they offer different services, they are effectively part of the same company. Liberty Mutual acquired the company in 2008.
What is Liberty Mutual phone number?
Liberty Mutual has different phone numbers for different purposes. Its primary phone number is 1-888-398-8924.
Does Liberty Mutual offer gap insurance?
Yes, Liberty Mutual does offer some gap insurance policies. Make sure to ask them for a quote if this is the type of insurance you're looking for.
How Does Liberty Mutual right track work?
You will be sent a tracking device that will track your driving habits — the device will come with instructions for installation. You can use this to reduce your insurance costs — you may save up to 30%.
How many customers Does Liberty Mutual have?
It appears the exact number of customers that Liberty Mutual has is not a publicly available statistic. They are currently the fourth largest insurance company in the United States.
Is Liberty Mutual a fortune 500 company?
Yes, as one of the largest insurance firms in the country, Liberty Mutual is considered a Fortune 500 company. In fact, they consistently finish in the top 100.
Is Liberty Mutual a good place to work?
On online databases for past and present employees, it appears that Liberty Mutual has mixed reviews. This being said, it scores much higher than many other companies.
How Does Liberty Mutual calculate total loss?
They will determine if the repair costs exceed the total damage to the car. If you want more information about how they're calculating your total loss, speak to your client representative.
How Does Liberty Mutual pay claims?
This will depend on the type of insurance claim that you're making. In some cases, Liberty Mutual may even be able to pay the repair company the money directly. Make sure to talk to your client representative if you're wondering about payment options.
How many employees Does Liberty Mutual have?
While the exact number of employees at Liberty Mutual is unknown, there are over 50,000 people currently employed by the company.
What is home protector plus Liberty Mutual?
This is an expanded homeowner's insurance policy offered by Liberty Mutual. This can be helpful if you want to reduce your overall exposure to potential costs. Think about also getting home warranty services in conjunction with this insurance.
Is Liberty Mutual insurance expensive?
The price of Liberty Mutual will completely depend on the type of insurance you're looking for, your record, and the amount of coverage you need. It's always important to make sure that you compare various quotes before making a decision. Comprehensive insurance coverage will always cost more.
What type of insurance Does Liberty Mutual offer?
As one of the largest insurance providers in the nation, Liberty Mutual offers a range of insurance policies. They also have partnerships with other insurance providers. For a full list of current policies, check the most recent resources on their site.
Can I purchase Liberty Mutual insurance online?
Yes, you can get a quote directly through their website. Alternatively, you can also call to get a quote if you want one via the telephone.
Does Liberty Mutual pay claims?
While there are some complaints online about Liberty Mutual's claims process, as one of the largest insurance providers in the nation, they should pay legitimate claims. Seek the assistance of a consumer watchdog group if you believe you're not being paid correctly.
What bank Does Liberty Mutual use?
It appears that Liberty Mutual does not make this information publicly available. If you'd like more information about their banking practices, it may be worth contact them directly.
When was Liberty Mutual founded?
Liberty Mutual is one of the oldest insurance providers in the United States. The company was first started in 1912. It has since grown into one of the largest insurance groups in the country — it's currently number four.
Are Geico and Liberty Mutual the same company?
No. Geico and Liberty Mutual are certainly two different companies. They are two of the largest insurance providers in the country.
How is Liberty Mutual insurance rated?
Liberty Mutual has mixed reviews from its past customers. Unfortunately, this is the case for every large insurance provider in the United States — you can't make everyone happy. But Liberty Mutual does have an A- rating with the BBB, which is considered a good score.
Liberty Mutual Policy FAQ
If you have a question about Liberty Mutual's policies, check out the questions below.
Does my Liberty Mutual car insurance cover rentals?
While some comprehensive packages to cover some rental insurance costs, make sure to double check what you're covered for — Liberty Mutual doesn't offer too much clear information on their coverage of rental cars.
Does Liberty Mutual cover water damage?
Unfortunately, this will depend on the cause of the water damage. If you're worried about a specific type of water damage, make sure to speak to a staff member about what you're covered for.
Does Liberty Mutual auto insurance cover windshield replacement?
This depends on the type of coverage you have. If you have comprehensive coverage, your windshield replacement costs should be covered. Other policies typically don't cover windshield damage.
Does Liberty Mutual cover towing?
You can purchase coverage for towing and labor. You need to make sure that you have added this onto your coverage or you may not have it. It's not necessarily included in your current policy.
What Does Liberty Mutual homeowners insurance cover?
As always, it's a good idea to look at your specific policy to see what your homeowner's insurance policy covers. Generally, Liberty Mutual will cover damage resulting from theft, fire, certain storms, frozen pipes, and a range of other potential costs. If you don't already have coverage then get a homeowner insurance quote to see what is covered. Also ask them if they offer discounts for having security alarm systems installed. Some companies do give better rates for this.
Are there policy fees for Liberty Mutual?
In some cases, there may be. For example, if you cancel your policy early there may be a fee. Make sure that it is worth cancelling before you make this decision.
Liberty Mutual Coverage and Other Questions
If you haven't found the answers you're looking for in the sections above, make sure to check out the questions below.
Does Liberty Mutual have health insurance?
At present, it does not appear that Liberty Mutual offers health insurance to its clients. This is an extremely complex form of insurance. We address this and other forms of health insurance such as supplemental medicare insurance and the best temporary health insurance in other articles. Learn more about how to choose health insurance.
Does Liberty Mutual insure rebuilt cars?
Liberty Mutual does not offer any information about covering rebuilt cars — many insurance companies shy away from this form of coverage. Contact them directly to see if they're willing to cover your car.
Does Liberty Mutual insure salvage cars?
Again, Liberty Mutual does not offer much information about their salvaged car insurance coverage. As previously mentioned, many insurance companies are not willing to provide this form of coverage. Contact them directly to ask about coverage options.
Can I purchase excess flood insurance from Liberty Mutual?
If you're intending to purchase traditional flood insurance, you can find quotes directly through the Liberty Mutual website.
Can I reapply at Liberty Mutual?
If you're looking for a job at Liberty Mutual, you should ask their recruitment staff if you are able to reapply for the same position.
Does Liberty Mutual offer earthquake insurance?
Liberty Mutual does not offer direct coverage through earthquakes, but you can access this form of coverage through a partnership program they have with an external insurance company.
Does Liberty Mutual offer RV insurance?
Yes, if you're looking to get some insurance coverage for your RV or motorhome, you'll be able to get coverage through Liberty Mutual.
Does Liberty Mutual offer travel insurance?
Yes, you can purchase travel insurance directly through Liberty Mutual. This can be an extra way to reduce the financial risks involved in overseas travel.
What Does Liberty Mutual roadside assistance cover?
The firm's roadside assistance coverage typically includes towing, unlocking, and jumpstarting your vehicle. Keep in mind that you normally have to purchase this as an add-on — make sure that you have it on your policy.
Who is the Liberty Mutual flat tire mom?
While there is no definitive information available on this question, it appears the mom may be actress Catherine Kamei. Speaking of tires we wrote another article talking about how you can find the cheapest tires online if you're needing them.
Does Liberty Mutual allow trampolines?
In some cases, you may be able to get trampoline coverage, but this varies by state. Make sure that you're covered before you assume your trampoline is included in your policy.
Does Liberty Mutual have motorcycle insurance?
Yes, Liberty Mutual offers a range of motorcycle insurance policies that can help you get the coverage you need for your motorbike. You can use a motorcycle insurance calculator to get a rough estimate of what your rates might be.
What Does Liberty Mutual right track monitor?
It monitors your driving habits, such as speed. You can save up to 30% by having this monitor on your vehicle.
Does Liberty Mutual have pet insurance?
Yes, if you would like to find insurance for your pet, you can find a range of policies at Liberty Mutual. This is an increasingly common form of insurance — pet related costs can truly add up if you don't have the right insurance policy.
How is medical cost sharing different than health insurance?
Cost sharing services are where members share the costs of medical expenses among themselves. So its deifnitely different than health insurance. Compare Medishare vs Liberty reviews for two cost sharing service examples.