Liberty Mutual Auto, Homeowners and Renters Insurance Review

Liberty Mutual Auto, Homeowners and Renters Insurance Review

Editor's Rating

Liberty Mutual offers coverage for a variety of insurance needs, but in some cases its policies may be too expensive for people who don't qualify for any discounts.

Good for

  • Drivers with a clean record who can take advantage of Liberty Mutual's accident forgiveness perk
  • Homeowners who need under $200,000 of property coverage
  • Renters who can qualify for Liberty Mutual's discounts

Bad for

  • People who want the cheapest homeowners or renters insurance
  • Renters with more than $25,000 of property
  • Drivers with older cars who want to qualify for the Better Car Replacement add-on
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Editor's Rating

Liberty Mutual offers coverage for a variety of insurance needs, but in some cases its policies may be too expensive for people who don't qualify for any discounts.

Good for

  • Drivers with a clean record who can take advantage of Liberty Mutual's accident forgiveness perk
  • Homeowners who need under $200,000 of property coverage
  • Renters who can qualify for Liberty Mutual's discounts

Bad for

  • People who want the cheapest homeowners or renters insurance
  • Renters with more than $25,000 of property
  • Drivers with older cars who want to qualify for the Better Car Replacement add-on
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Liberty Mutual is usually an insurer to consider for different types of coverage, including auto, homeowners and renters insurance. Typically, a standard Liberty Mutual policy will meet the needs of most people while also providing customers some room for personalization.

The company's abundant discounts also increase the likelihood that many customers will be able to lower their premiums. However, despite Liberty Mutual's potential savings, its prices can fluctuate drastically. We found that the provider could be among the cheapest insurers or the most expensive, depending on the area.

Liberty Mutual Reviews

Is Liberty Mutual good insurance: our thoughts on your coverage options

Liberty Mutual is a great insurer for people looking for no-frills auto or homeowners policies. Basic auto, homeowners and renters coverage from Liberty Mutual all come with industry-standard protections and the chance to add two or three endorsements.

Additionally, Liberty Mutual's online quote form makes it easy for users to get the coverage they want, especially if they've never bought insurance before. It takes less than ten minutes to get a quote, and you can adjust your limits to see how the final price of your policy will be affected before buying. If it's important to have a relationship with an agent or representative, you can also take advantage of Liberty Mutual's local offices, though in most cases it's much easier to purchase insurance online.

The company's main drawback is its rates, which can alternate between the cheapest and most expensive options depending on the state or region you live in. You may also see much higher prices if you want to insure more property, especially homeowners. Even by qualifying for some of Liberty Mutual's many discounts, its prices can sometimes still be unattractive compared to its competitors.

Homeowners insurance key takeaway: Liberty Mutual is best for homeowners who aren't looking for a policy worth over $200,000. If you haven't bought insurance before or own a smaller property, consider Liberty Mutual for protection — especially if you qualify for more than one of its available discounts.

Renters insurance key takeaway: Liberty Mutual's renters insurance is a stronger option than its homeowners insurance. There are still many discounts to help reduce your premium, and renters insurance from Liberty Mutual is closer to its competitors in terms of average cost. Like the company's other policies, there are only a couple options for personalizing your coverage.

Liberty Mutual Auto Insurance: High rates and questionable service

Liberty Mutual's car insurance coverage is considerably more expensive than the competition and delivers mixed results when it comes to customer satisfaction. Whether you want the bare minimum in liability insurance or full coverage, the quotes we pulled from Liberty Mutual were 23% to 62% above average industry rates.

Complaint data from the National Association of Insurance Commissioners (NAIC) showed that Liberty Mutual has been hit with an unusually high number of consumer complaints relative to its size. The company also scored below average in nearly all of the J.D. Power regional rankings where it was included.

The combination of high cost and uncertain service quality led us to assign Liberty Mutual just two out of five stars when it comes to auto insurance. While it does offer some interesting features such as an annual deductible fund, we didn't find that the benefits were strong enough to offset those drawbacks.

Consider these alternatives to Liberty Mutual car insurance:

Best insurer overall

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Most affordable rates

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Best customer service

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Auto insurance coverage features at Liberty Mutual

The coverage features that Liberty Mutual brings to the table compare well against policies at other car insurance companies. Liberty Mutual also offers a few unique extras that set it apart, such as Better Car Replacement and the Deductible Fund.

Optional extras at Liberty Mutual

  • Uninsured/underinsured motorist coverage: Covers your costs when you're in an accident with a driver who has insufficient or no insurance.
  • Personal injury protection: Extra coverage for injuries, lost income and other expenses that result from injury to you or your passengers.
  • Glass coverage: Pays for broken glass on your car with no deductible payment required.
  • Better Car Replacement: If your car is totaled, pays for a replacement car one model year newer with 15,000 fewer miles.
  • Liberty Mutual Deductible Fund: Grows by $100 each year and is applied to reduce your next deductible payment.
  • 24-Hour Roadside Assistance

Most of these features can be found at some other insurers, but the last two are unique to Liberty Mutual. The Better Car Replacement coverage is an interesting protection for drivers who prefer to stick with the same vehicle model after their current car gets totaled.

Meanwhile, the Liberty Mutual Deductible Fund costs just a few extra dollars per month and builds up $100 each year that you can use towards any deductible payment you need to make in the future. This is effectively a vanishing deductible benefit similar to what a few other insurers offer, and it may be extremely useful if you're able to stay out of accidents for several years in a row.

Liberty Mutual car insurance discounts

Like many insurers, Liberty Mutual offers a wide variety of discounts for drivers. Unlike many insurers, Liberty Mutual quotes above-average rates that make its discounts much more important if you're trying to get an affordable quote.

  • Online Purchase Discount: Apply and pay for your policy through Liberty Mutual's website for a 5% discount.
  • Accident Free Discount: Remain accident-free for five years.
  • Violation Free Discount: Keep a violation-free driving history for five years.
  • RightTrack® Discount: Plug in a telemetric device for 90 days of monitoring for a discount of up to 30% depending on your driving patterns.
  • Vehicle safety discounts: Certain features of your car, such as anti-theft devices, can earn discounts.
  • Homeowner Discount: Get a discount for being a homeowner.
  • Accident Prevention Course Discount: Take a state-approved accident prevention course in the last three years.
  • Preferred Payment Discount: Authorize automatic monthly payments from your bank account.
  • Paperless Policy Discount: Opt into eSigning forms and viewing policy documents online instead of by mail.

Liberty Mutual's car insurance rates

No matter how much or how little coverage you're seeking, Liberty Mutual's auto insurance is more expensive than average. However, its rates for full coverage are somewhat more in line with the competition than its rates for bare minimum policies.

Graph of Liberty Mutual's car insurance rates

Monthly rates for Liberty Mutual car insurance

Liability coverage onlyFull collision/comprehensive
Standard driver$179$282
Driver with accident$205$323
Driver with at-fault accident$222$346

When we compared three different driver profiles across two types of policy, Liberty Mutual returned quotes that were consistently more expensive than the typical cost of coverage that we've seen from other insurers.

That said, it didn't appear that Liberty Mutual upcharges drivers with an accident any more than competitors do. Avoiding accidents — especially those which are your fault — is a key strategy in keeping your insurance costs down, no matter which company you choose.

Customer reviews for Liberty Mutual car insurance

The other drawback we noticed about Liberty Mutual's car insurance was the high number of complaints registered by its policyholders. This should be a major concern for drivers, given how crucial it is to find a car insurance company that can effectively resolve your difficulties in a claim situation.

In 2019, the NAIC complaint index for Liberty Mutual was 5.06. Read simply, that number means Liberty Mutual car insurance customers complained five times more frequently than those at insurance companies of a similar size.

Third-party ratings didn't favor the company either, with J.D. Power's most recent satisfaction ratings listing Liberty Mutual's scores as below average in every geographic region except for Florida. This score represents survey responses about everything from an insurer's claims handling to its responsiveness and billing process.

Liberty Mutual homeowners insurance review

While Liberty Mutual's homeowners insurance can sometimes be expensive, its price varies a lot depending on your area. Given its extensive discounts and service quality, you should consider it as long as the price fits within your budget.

If you'd like to check the cost of homeowners insurance near you, you could use the following secure form to compare the prices of multiple insurers, including Liberty Mutual.

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Liberty Mutual homeowners insurance features and discounts

Liberty Mutual's standard homeowners insurance aligns with offerings that are typical across the rest of the market. If you want more security, you can add increased coverage for your valuables, water backup protection, and an endorsement which allows your benefits to keep up with the cost of inflation. Without adding any of these protections, a policy comes with coverage for your:

  • Dwelling
  • Personal possessions
  • Liability
  • Additional living expenses

One of the best parts about Liberty Mutual's homeowners insurance policy is the ability to lower your premiums by capitalizing on its discounts. Since many of these are easy to qualify for, it could make getting homeowners insurance from Liberty Mutual more affordable in places where it's otherwise an expensive option.

You might benefit from multiple discounts from Liberty Mutual if you're someone who's recently moved into a new house, or whose home has been remodeled. Additionally, you could qualify for more than one discount by utilizing Liberty Mutual's online quote form to shop for homeowners insurance. If you own an older home or have a history of making homeowners insurance claims, you may not be able to use discounts to reduce your premiums.

Here is Liberty Mutual's complete list of homeowners insurance discounts:

  • Bundle & Save — Multi-Policy Discount: You might qualify for a multi-policy discount if you have a home and auto policy with Liberty Mutual.
  • Claims-Free Discount: If you switch providers, you'll save if you haven't filed a claim with your previous insurer for at least five years.
  • Safe Homeowner Program: After being claim-free with Liberty Mutual for at least three years, you could qualify for this discount.
  • Protective Devices Discount: Become eligible by installing protective devices like smart home devices, smoke alarms, deadbolts, fire extinguishers, fire alarms, burglar alarms or sprinklers in your home.
  • Newly Purchased Home Discount: Earn a discount if you've purchased your home recently.
  • Early Shopper Discount: Save by requesting a quote before your policy with another carrier expires.
  • Insured to Value Discount: You can become eligible when you insure your property for up to 100% of the cost to replace your home
  • New/Renovated Home Discount: Substantially renovating or purchasing a new home earns you this discount.
  • Military Discount: This discount is available to active duty and retired military service members.
  • Preferred Payment Discount: Qualify for this discount by signing up for automatic monthly payments through Liberty Mutual's online funds transfer plan.
  • New Roof Discount: Become eligible by having a new or recently replaced roof.
  • Paperless Discount: Sign up for paperless billing and Liberty Mutual will deduct some of your premium.

Homeowners insurance quote comparison

We collected hundreds of quotes from across the country and found that Liberty Mutual's homeowners insurance rates are generally among the least affordable compared to its competitors. The company is most affordable to people looking to insure properties worth less than $200,000. Even though its prices are still relatively expensive compared to other companies', qualifying for discounts could lower your policy's cost and put it on par with, or even below, your state's average premium.

This graphic illustrates Liberty Mutual's average prices at three different levels of coverage. We chose the figure $217,600 to correspond with the national median value of owner-occupied homes.

A bar graph showing Liberty Mutual's prices for homeowners insurance
A bar graph showing Liberty Mutual's prices for homeowners insurance

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Liberty Mutual renters insurance review

Liberty Mutual's renters insurance policies are fairly standard before you add endorsements. Like its homeowners insurance, Liberty Mutual's renters insurance may work best for people looking for standard coverage without needing to personalize their policies.

Unlike Liberty Mutual's homeowners insurance, we found that its renters insurance more generally matches the rates of its competitors.

Liberty Mutual renters insurance coverage and discounts

Liberty Mutual's standard renters insurance covers damage to your personal property, other people's property that you're responsible for and additional living expenses if your home is temporarily unlivable. You can choose to purchase additional coverage with Liberty Mutual's endorsements. You may elect to add:

  • Replacement cost coverage: If you suffer a covered loss, your compensation won't be lessened by the depreciated value of your property.
  • Blanket jewelry protection: Raises the limits of protection for your jewelry
  • Earthquake insurance: If you live in an eligible area, you can add this protection to protect your property from the damage of earthquakes.

Like Liberty Mutual's other insurance policies, there's a lot of opportunity to apply discounts to your premium. People who take advantage of Liberty Mutual's online presence to shop for renters insurance coverage may be able to take advantage of more than one discount. You could also qualify for multiple discounts if you've outfitted your home with safety or security devices.

You may qualify for the following discounts:

  • Claims-Free:You could save if you haven't filed a claim with your previous provider for five years or more.
  • Military Discount:Active, retired or reserve members of the military can receive this discount.
  • Early Shopper Discount:If you get a quote with Liberty Mutual before your current policy expires, you could save up to 45%.
  • Smart Home:Installing smart protective devices in your home, like a security system, could save you money.
  • Protective Devices:Invest in smoke alarms, deadbolts, fire extinguishers, fire alarms, burglar alarms or sprinklers to qualify.
  • Multi-Policy:Bundle your renters insurance policy with another form of protection from Liberty Mutual.
  • Preferred Payment Discount:Sign up for automatic payments linked to your bank account.
  • Online Purchase Discount:Purchase a renters insurance policy online and receive a discount.
  • Paperless Policy Discount:Get a discount for electing to receive your bill electronically.

Renters insurance quotes comparison

We gathered quotes from cities across the country and found that Liberty Mutual's renter insurance premiums tend to compare better with its competitors than its homeowners insurance rates. The price of coverage from Liberty Mutual is often only a couple of dollars more expensive than the second cheapest option. Also, the price of a typical $25,000 policy comes close to the national cost of renters insurance, which is $187.

In most cases, you should consider Liberty Mutual's renters insurance if you own less than $25,000 worth of property. Unfortunately, coverage isn't available for property worth more than $25,000. However, you can purchase coverage for as little as $5,000.

A bar graph showing Liberty Mutual's rate prices for renters insurance
A bar graph showing Liberty Mutual's rate prices for renters insurance

Liberty Mutual insurance rating

Whether you're searching for auto, homeowners, or renters insurance coverage, Liberty Mutual is one of the largest providers in the US. The company's financial health, evaluated by A.M. Best, is excellent for both its main auto and homeowners subsidiaries. Liberty Mutual's customer service ranking is also okay, though weaker than some of its competitors', especially for auto insurance.

The National Association of Insurance Commissioners (NAIC), the standard-setting body for the insurance industry, tracks the complaints each company receives relative to its size. A complaint index above 1.0 means that an insurer exceeds the expected amount of complaints for its market share.

Liberty Mutual's largest homeowners insurance subsidiary has a complaint index of 0.5, meaning it gets about half the expected complaints. Its auto insurance gets more than the expected number of complaints, with a 1.18 complaint index. Most of Liberty Mutual's complaints stem from delays in the claims handling process or unsatisfactory offers or settlements after a loss.

MetricValue
A.M. Best financial ranking (2019)A (Excellent)
NAIC complaint index (2018)0.50(homeowners)/1.18 (auto)

Methodology

To find our homeowners insurance rates, we pulled three sets of quotes from every ZIP code in the top 15 most populated states in the United States. Then, we averaged the overall cost of each company for each policy. Our sample properties were insured for $175,000, $217,600 (the average value of owner-occupied homes in the US), and $300,000. Our sample properties were built in 1978, the national median age of homes.

For our renters insurance premiums, we manually sourced quotes for Los Angeles, Colorado, Illinois and New York City. We collected data for policies with $500 deductibles and property coverage of $15,000, $25,000, and $30,000. We then averaged the cost of coverage for each policy level to arrive at comparable rates.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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