Liberty Mutual Auto is a multinational insurance company with operations in over 20 countries.
The company was founded in 1912 and has since become the fourth largest insurance company in the world.
In 2015, it ranked #78 on the Fortune 500: List of Largest Corporations in the U.S.
Beyond awards, however, this Liberty Mutual Auto insurance review seeks to identify the company’s strengths and weaknesses.
Liberty Mutual Auto Insurance Review: Top Highlights
Liberty Mutual auto insurance helps their customers create the best policy for their needs by offering a variety of insurance options.
Some of the options offered include:
- Standard Coverage: Liberty Mutual’s standard coverage includes bodily injury liability, property damage, and medical coverage.
- Better Car Replacement: If a policyholder’s car is damaged beyond repair in an accident, they’ll be paid the money required for a replacement car that’s a year newer than their previous model and has 15,000 fewer miles.
- Towing and Labor: This pays for more than just repairs, but includes labor charged by mechanics or auto-body repair shops, and towing fees.
- Rental Car Coverage: If an insured driver requires a rental car after an accident, this policy covers associated costs.
After creating a policy with a Liberty Mutual auto insurance representative, contact between the policyholder and the company is generally limited. Aside from occasional phone calls or visits to the representative, most interactions occur during the claims process.
When market research firms such as J.D. Power determine Liberty Mutual Auto insurance ratings and rank the company among other major insurance providers, each one uses unique criteria.
Something they all have in common, however, is the three key performance indicators they use to rate the claims process: communication, ease of service interaction, and timeliness.
In the J.D. Powers 2017 US Auto Claims Satisfaction Study, Liberty Mutual Auto is ranked fairly low among its peers with an overall claims satisfaction rating of 2 out of 5.
In the individual categories of First Notice of Loss, Repair Process and Rental Experience, the company ranked 3 out of 5, while rankings in Claim Servicing, Estimation Process, and Settlement were all 2 out of 5. These scores put Liberty Mutual just ahead of Mercury and COUNTRY Financial, and just behind Automobile Club Group and CSAA Insurance Group.
Overall Customer Satisfaction Review
When insurance companies are rated for overall customer satisfaction, it’s not just the claims process that matters.
All communication the company has with the consumer is considered, including how complaints are managed and how the company responds to inquiries from policyholders and potential clients. In the J.D. Power shopping study, consumers can find Liberty Mutual Auto insurance ratings that relate to policy offerings, pricing, local and call center agents, and the company’s website.
The 2017 study shows that Liberty Mutual Auto received an overall customer satisfaction rating of 3 out of 5.
The overall customer satisfaction rating is comprised of individual ratings of 3 out of 5 for Pricing and Call Center Representative, along with ratings of 4 out of 5 on Policy Offerings, Local Agent and Website.
The California Complaint Ratio Study calculates complaint ratios based on the number of complaints originated in California, one of the most populous states, and on the number of claims received by the insurance provider.
In the 2017 study, Liberty Mutual Auto’s complaint ratio is rather poor, with the company ranked 45th out of 50 insurance providers.
With a total claim exposure of 263,523 and a total of 55 justified complaints, Liberty Mutual has a complaint ratio of 14.4. This puts them lower than most major carriers such as Progressive and Nationwide.
All car insurance policy prices are determined by several factors such as the age, gender, and history of the driver, their geographic location, and the make and model of the vehicle.
For comparison purposes, the following scenarios will be used to discuss Liberty Mutual Auto insurance reviews regarding insurance pricing.
- Single Female (licensed 9 years): One car (Toyota Camry), one violation and one no-fault accident in the preceding 3 years, driving around 12,000 miles per year, living in Miami-Dade County, Florida
- Single Male (licensed 9 to 15 years): One car (Toyota Camry), no violations, driving around 12,600 to 15,000 a year, living in San Francisco County, California.
In scenario one, which involves a single female driver located in Florida, Liberty Mutual Auto’s price comes in on the higher end of the spectrum at $3,023. The lowest quote for this scenario is from United Service Automobile Association at $576, while the highest is $4,866 from Direct General.
In scenario two, Liberty Mutual Auto’s price quote remains one of the highest at $1,590, which is nearly triple the lowest available price of $567 from Lova. The highest quote available in this scenario is from Viking, at $1,990.
Many don’t think about researching a company’s financial strength and stability before committing to an insurance policy, but it’s an important part of the process.
It’s vital that customers feel confident that a company will be able to honor their policies in the event of a large-scale disaster when hundreds or even thousands of claims are filed.
The Insurance Information Institute provides information to consumers on how to understand financial strength ratings from five independent rating companies.
A.M. Best indicates that financial outlook is stable for Liberty Mutual Auto and has provided the company with a Financial Strength Rating (FSR) of “Excellent,” and a Long-Term Issuer Credit Rating of bbb. Moody’s Investors Services have assigned it a rating of A2, which indicates that the company is stable with solid financial flexibility.
With the Liberty Mutual Auto insurance information laid out in this review, you should be able to confidently search for an affordable and reliable auto insurance policy that suits your needs.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.