Auto insurance education: Let's drive through the basics

Every driver on the road is different. When it comes to coverage, what’s right for the driver in your left lane may not be quite right for you. That's why we want to help you understand the basics, learn more about extra protection (and who actually needs it), and help you customize the best policy for you and your vehicle.

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

Collision Insurance

Collision coverage pays for damage to your vehicle when it collides with another vehicle or object.1

Auto Damage

Comprehensive Insurance

Comprehensive coverage pays for damages to your vehicle from incidents other than a collision.

Rental Car Reimbursement

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

24Hr Roadside Assistance

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

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

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.

Liberty Mutual Deductible Fundtm savings chart. coverage.

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.

Smartphone

Distracted driving

Today, 1 in 4 accidents involves someone using their cell phone.6
Engine Trouble

Higher auto repair costs

High-tech safety features are driving repair costs up $1,705 per vehicle, on average.7
Auto

More drivers on the road

Over 3 trillion miles were driven in 2016 (up 3% from 2015), resulting in more accidents.8
1Optional coverage in some states; availability varies by state. Eligibility rules apply.
2Coverage is provided on the optional Transportation Expenses Coverage endorsement. Elected rental car coverage daily limits will apply. Damage must be a covered loss. May vary by state.
3Coverage is provided on the optional Towing & Labor Coverage endorsement. May vary by state. Applies to mechanical breakdowns and disablements only, and may be subject to limits.
4Optional coverage in some states; availability varies by state. Eligibility rules apply.
5Optional coverage in some states; availability varies by state. Eligibility rules apply.
6Distracted driving: National Safety Council Estimate.
7Higher auto repair costs: Liberty Mutual Insurance: "Cost to Repair a 2016 vs. 2014 Entry-Level Luxury Car
8More drivers on the road: U.S. Department of Transportation Federal Highway Administration