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.
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.