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Auto Insurance Costs

  • Auto Insurance Costs

    We know how hard high premiums hit some of our customers. It's why we work so hard to control costs and promote safety. It's also why we are the customer's advocate, using our size and strength to achieve what the individual consumer can't.

    We've identified 5 primary reasons that keep rates climbing. They're problems we desperately want to solve. And we're hoping you'll help.

    1. People Have Accidents
    With 40 million accidents in the world each year, insurance costs are hard to decrease.

    What We're Doing
    By teaming up with other insurance companies and consumer groups to form "Advocates for Highway and Auto Safety," we're working on programs and legislation to impact drunk driving, safety belt use, child safety seat use and speed enforcement. Liberty Mutual also supports the Insurance Institute for Highway Safety's Vehicle Research Center and their crash-test safety research.

    What You Can Do

    • Drive defensively and within speed limits.
    • Support legislation to crack down on drunk and reckless driving.
    • Support police in their traffic enforcement efforts.
    • Think air bags, automatic safety belts and anti-lock brakes in your next car. In bad weather, drive accordingly. Or don't go if you don't have to.

    2. Cars are Expensive to Repair
    To repair a totaled $24,815 automobile with manufactured replacement parts, the cost would be more than $71,000 -- and that is not including the $20 to $60 per hour labor costs.*

    What We're Doing
    We're working to have strong federal bumper requirements reinstated, as well as on legislation to make bumper strength ratings available in new car showrooms. We also believe in fully-guaranteed Quality Replacement Parts. Equal in quality to those from auto manufacturers, they'll keep repair costs, and our rates, down.

    What You Can Do

    • Support legislation to improve the safety and construction of automobiles.
    • Accept guaranteed Quality Replacement Parts as equal to original equipment.
    • Buy a car with a 5 mph bumper.

    *Property Casualty Insurers Association of America (PCIAA) 2002 study using a 2002 Dodge Grand Caravan Sport vehicle.

    3. Medical Treatment for Accident Victims is Expensive
    Upward trends in medical treatment costs** in the U.S. have created a health care crisis that cannot be solved by the insurance industry alone.

    What We're Doing
    We're a strong advocate of meaningful, long-term, health care reform. Short-term we hope to control medical costs by preventing and reducing the severity of injuries.

    What You Can Do

    • Always use safety belts. Always make those riding with you use them too.
    • Make air bags a priority in your next car.
    • Drive defensively and to suit road conditions.
    • Don't speed.
    • And never drive under the influence.

    **U.S. Bureau of Labor and Statistics

    4. People Steal Cars
    As auto theft continues to rise, so will the cost of auto insurance.

    What We're Doing
    Whether it's helping initiate new laws, participating in auto theft-prevention bureaus that make grants to local police departments fighting serious theft problems, or donating electronic retrieval systems to help police to recover stolen cars, we're at the front in the war on auto theft.

    What You Can Do

    • Park in well-lit areas.
    • Always lock your car and take the keys.
    • Install an anti-theft device in your car.

    5. Some People File Fraudulent or Inflated Claims
    Some people believe an accident is an opportunity to make money.

    What We're Doing
    Aside from having our own special investigative teams to root out fraud, we support legislation to create government-run, anti-fraud units. We're also looking to reduce lawsuits while making sure seriously injured people are fairly compensated through the enactment of meaningful no-fault laws. A good no-fault law allows people injured in auto crashes to receive their appropriate medical and wage loss benefits faster, easier and still pay lower premiums.

    What You Can Do

    • Understand that using minor bodily injuries to gain a major cash award raises everyone's rates.
    • Encourage legislators and insurance officials to enact a good no-fault law.


    Get an Auto Insurance Quote