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Liberty Mutual Insurance Review 2018: Complaints, Ratings and Coverage


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Liberty Mutual reviews and ratings

  • Customer satisfaction ratings are mixed for auto insurance and about average for home insurance
  • Received close to the median number of complaints auto insurance and fewer than the industry median for home and life insurance
  • Placed 20th in NerdWallet’s rankings of the best car insurance companies

Liberty Mutual is the nation’s sixth-largest auto insurer based on direct premiums written in 2017. In addition to home and auto insurance, Liberty Mutual offers a vast array of personal and commercial insurance policies.

Auto insurance rating

Liberty Mutual ranked 20th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies, earning 3.5 stars out of 5. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Liberty Mutual had close to the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners. But it had fewer than the median for life and home insurance.

Customer satisfaction

  • Liberty Mutual ranked “better than most” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study.
  • It ranked among “the rest” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study.
  • It ranked “about average” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study.
  • It ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study.

Financial strength: A (excellent)

Liberty Mutual’s financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.


Auto insurance rating

Liberty Mutual ranked 20th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies, earning 3.5 stars out of 5. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Liberty Mutual had close to the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners. But it had fewer than the median for life and home insurance.

Customer satisfaction

  • Liberty Mutual ranked “better than most” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study.
  • It ranked among “the rest” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study.
  • It ranked “about average” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study.
  • It ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study.

Financial strength: A (excellent)

Liberty Mutual’s financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

Liberty Mutual auto insurance

Liberty Mutual offers standard auto policies to which you can add several types of optional coverage, including:

  • Accident forgiveness: Your premium won’t increase as a result of your first accident. This coverage is not available in California and may vary by state.
  • New car replacement: If your car is totaled in the first year and first 15,000 miles, you’ll be reimbursed the cost of a new car, not just the depreciated value.
  • Better car replacement takes new car replacement a step further: If your car is totaled at any age or mileage, you’ll be reimbursed for a car one year newer and with 15,000 fewer miles on it than your totaled car.
  • Deductible fund: Liberty Mutual reduces your collision deductible by $100 when you add this feature to your policy, and another $100 every year after that. Even if you’re in an accident, the deductible doesn’t go up.

Teachers’ Auto Insurance is a unique offering from Liberty Mutual. It comes at no extra cost to teachers and includes:

  • Vandalism loss protection: No deductible if your vehicle is vandalized during school-related events or on school property.
  • Personal property coverage: Liberty Mutual will reimburse you up to $2,500 per occurrence if your teaching materials or school-owned property are stolen or damaged while in your vehicle
  • Collision coverage: There’s no deductible if your car is damaged in an accident while driving it for school business. (In Pennsylvania, a $100 deductible applies.)

Liberty Mutual home insurance

Liberty Mutual offers homeowners insurance policies with standard features, plus the following additional coverage options:

Coverage for valuables pays for items such as jewelry, art or camera equipment if they’re damaged or destroyed.

Inflation protection: Liberty Mutual will automatically adjust your coverage limits at renewal time to account for inflation and also apply a discount to your premium, but some limitations apply.

Home Protector Plus is an upgrade package you can add to your base homeowners insurance policy with Liberty Mutual. It includes:

  • Expanded coverage: Pays unforeseen costs when you’re rebuilding your home.
  • Personal property replacement: Liberty Mutual will pay to replace your damaged or destroyed items with new ones after a claim, not just give you a check for the depreciated value. The company will also help you locate the exact replacement items, or find the closest match.

Liberty Mutual life insurance

Life insurance and annuities are issued by Liberty Life Assurance Co. of Boston, a subsidiary of Liberty Mutual. It offers term, whole and universal life insurance.

Other insurance available from Liberty Mutual

Liberty Mutual policies that do not require an auto or home policy
  • Renters insurance
  • Condo insurance
  • Landlord insurance
  • Motorcycle insurance
  • Flood insurance
Liberty Mutual policies requiring an existing auto insurance policy
  • Umbrella insurance
  • Antique and classic car insurance
  • ATV and off-road vehicle insurance
  • RV and trailer insurance
Liberty Mutual policies requiring an existing home insurance policy
  • Boat and watercraft insurance
Policies available through Liberty Mutual partner insurance companies
  • Pet insurance
  • Mobile home insurance

More about Liberty Mutual

Website: The Liberty Mutual website is robust and useful, allowing you to manage your policies, pay your bill, access ID cards and report or track a claim.

Mobile app: You can do a lot with the Liberty Mutual mobile app, including track claims, pay bills, and view policy documents. The accident and roadside support feature lets you capture information and photos at the scene of an accident or call for emergency roadside services.


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NerdWallet’s star ratings are based on the following three factors, each weighted equally to produce a 300-point maximum total score:

  • 2017 consumer complaints data from the National Association of Insurance Commissioners. The median complaint ratio for the industry is 1. Lower ratios are better. Insurers whose median complaint ratios were more than 1 received fewer points; those lower than 1 received more points.
  • 2017 company satisfaction data from the Consumer Reports Winter Survey. Higher satisfactions ratings from Consumer Reports were given higher scores in our calculation.
  • 2017 J.D. Power ratings from three studies encompassing regional customer service satisfaction, auto claims satisfaction and shopping satisfaction. Ratings from each of the separate 2017 studies were averaged to form one overall score from J.D. Power. The higher the average, the more points the insurer scored in our calculation.

Only larger insurers with data available in all three of these categories were included. Smaller insurers not listed here may also be good choices and are worth consideration.