Un-complicating auto coverage
Understanding your coverage options shouldn't be so hard. We'll guide you through available coverage types, starting with who and what is covered.
What comes standard
The coverage you need
Bodily Injury Liability
Property Damage
Medical Payments
Benefits
12-month rate guarantee | 24/7 customer service | Lifetime Repair Guarantee
Add-on protection & coverage
For more peace of mind
Better Car Replacement
Towing & Labor
Rental Car Coverage
Earned Benefits
Accident Forgiveness1 | New Car Replacement™
Don’t stress over a total loss with Better Car Replacement TM
If your car is totaled, Liberty Mutual will pay for a car one model year newer with 15,000 fewer miles than your current car2. This add-on coverage ensures you stay in an even better ride than before, should you have an accident.
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It’s not always easy to know the difference between certain terms when it comes to insurance. Let’s clear up exactly what the most important ones mean.
Deductible
The initial amount you pay out-of-pocket before coverage kicks in. In most cases, you pay this upfront in the event of a claim, even if you were not at fault.
Premium
The total amount that you pay for an insurance policy.
Pro tip: You can choose a lower deductible by paying a higher premium.
Liability
What you’re responsible for in the event of an accident.
Limit of liability
The maximum amount an insurance company can pay for coverage according to your policy.
For more helpful definitions, check out our Insurance Glossary
Deductible
The initial amount you pay out-of-pocket before coverage kicks in. In most cases, you pay this upfront in the event of a claim, even if you were not at fault.
Premium
The total amount that you pay for an insurance policy.
Pro tip: You can choose a lower deductible by paying a higher premium.
Liability
What you’re responsible for in the event of an accident.
Limit of liability
The maximum amount an insurance company can pay for coverage according to your policy.
For more helpful definitions, check out our Insurance Glossary
It can seem like there’s no rhyme or reason as to why your insurance rate is what it is, but there are several factors that help determine your coverage and price.
The basics
Your age
Statistics tell us that certain age groups are less likely to have good driving behavior, and are therefore a higher risk to insure.
Where you live
From environmental factors to the number of cars on the road, where you live indicates a lot about what kind of risks you’re more likely to encounter. Even varying regional repair and medical costs determine this aspect of your rate.
The kind of car you drive
The age, condition, and safety features your car has all contribute to what determines your rate.
Your driving history
As you might guess, a good driving record can mean a better rate on your policy, whereas a history of accidents or other violations can mean a higher risk to insure.
A few universal things that contribute to rate increases
The basics
Your age
Statistics tell us that certain age groups are less likely to have good driving behavior, and are therefore a higher risk to insure.
Where you live
From environmental factors to the number of cars on the road, where you live indicates a lot about what kind of risks you’re more likely to encounter. Even varying regional repair and medical costs determine this aspect of your rate.
The kind of car you drive
The age, condition, and safety features your car has all contribute to what determines your rate.
Your driving history
As you might guess, a good driving record can mean a better rate on your policy, whereas a history of accidents or other violations can mean a higher risk to insure.
A few universal things that contribute to rate increases
- A notable spike in distracted driving incidents
- Higher medical & auto repair costs
- More drivers on the road
Look at similar policies
When comparing car insurance quotes, it helps to compare apples to apples; in other words, you want to be sure that the quotes you get are for identical - or at least very similar - auto insurance policies. Once you have a better idea of the type of coverage you’re looking for in a policy, this will be easy. To better understand coverage types start here
Know what policy features are included
Liberty Mutual lists all coverages and features in our policies. This helps you understand exactly what's included in your quote, and which items may have an additional cost, such as towing or car rental coverages. When you compare car insurance, make sure you're getting the coverage you need and the features you want.
Comparing similar coverage, limits, and deductible amounts
Put simply:
More coverage + lower deductible = higher premium
Less coverage + higher deductible = lower premium
Also, be sure you're comparing the same coverage period, usually a 6-month or 12-month term.
1The RightTrack® discount applies only to the base coverages on the participating vehicle, which may include Bodily Injury, Property Damage, Comprehensive, Collision, Personal Injury Protection (PIP) or Medical Payments, Uninsured Motorist, and Underinsured Motorist (subject to state availability). Initial discount may vary by state and is replaced with a final discount upon completion of a review period. Not available in all states. Coverage provided and underwritten by Liberty Mutual Insurance and its affiliates, 175 Berkeley Street, Boston, MA 02116. ©2017 Liberty Mutual Insurance.
2Optional coverage in some states; availability varies by state. Eligibility rules apply.