Auto insurance education: Let’s drive through the basics
Auto insurance options to help you customize
Certain coverages – including Bodily Injury Liability, Property Damage Liability, and Medical Payments Insurance – come standard. But we know that each driver is unique, and offer up a number of add-on coverages to help customize the right auto insurance policy for you.
Collision Insurance
Collision coverage pays for damage to your vehicle when it collides with another vehicle or object.1
Comprehensive Insurance
Comprehensive coverage pays for damages to your vehicle from incidents other than a collision.
Rental Car Reimbursement Coverage
If you’re in a covered accident, you can rely on Rental Car Reimbursement to pay the cost of a rental car.2
24-Hour Roadside Assistance
If your car breaks down, we won’t leave you stranded. Optional 24-Hour Roadside Assistance will get you moving again.3
New Car Replacement
If your new car is totaled in the first year, you’ll get the money for a brand-new car, not just the depreciated value.4
Better Car Replacement™
If your car is totaled, we’ll give you the money for a model that's one year newer.5
Understanding your deductible
Your deductible is the initial amount you pay out-of-pocket before your coverage kicks in. In most cases, you'll need to pay your deductible up front, even if the claim wasn't your fault.
Auto customers may enroll in the Liberty Mutual Deductible Fund® and receive as much as $70 annually towards their deductible. This helps you save on your deductible year after year when added to your policy, and can greatly reduce or even eliminate your deductible over time.
- You pay $30 as part of your yearly premium toward your Deductible Fund.
- Liberty Mutual lowers your deductible by $100 every single year.
- The money in your fund will reduce the balance you pay out-of-pocket if you have a claim.
Note: After year 5, you’ll continue to earn and save beyond the $500.
What's driving premiums up across the industry
Several factors — including where you live, what kind of vehicle you drive, and your claims history — can affect your premium. There are also external factors that come into play, like rising medical and vehicle repair costs.