Liberty Mutual is so expensive because of agent commissions and rising costs overall for insurance companies. At $1,090 per year, the average Liberty Mutual car insurance policy is a lot more expensive than the national average of $671 per year for a policy with minimum coverage.
Liberty Mutual insurance is even more expensive for drivers with certain characteristics, including young drivers and drivers who have recently caused an accident. For example, teenagers pay an average of $2,991 per year for Liberty Mutual insurance, compared to $1,105 per year for older drivers. Additionally, drivers who have recently had an at-fault accident pay an average of $1,845 per year for Liberty Mutual coverage, which is 69% more than drivers with a clean record.
Factors That Can Make Liberty Mutual Insurance More Expensive
- Commissions for agents
- Rising costs overall for insurance companies
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your Liberty Mutual policy, there are ways for you to lower your premium. For example, you can take advantage of Liberty Mutual discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if Liberty Mutual is charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's Liberty Mutual insurance review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Liberty Mutual is so expensive because of agent commissions and rising costs overall for insurance companies. At $1,090 per year, the average Liberty Mutual car insurance policy is a lot more expensive than the national average of $671 per year for a policy with minimum coverage.
Why are car insurance rates going up in 2024? ›
Factors such as longer repair times and more expensive rental car costs are resulting in rising prices, according to a report by the American Property Casualty Insurance Association. Also, cars are becoming costlier to fix.
Who is cheaper than Liberty Mutual? ›
Geico: Cost. Geico is usually a cheaper option than other top insurance companies, including Liberty Mutual.
Why are insurance premiums increasing? ›
Higher insurance premiums for cars and homes are being driven by a mix of factors, including changing regulations, changing human behaviour and a changing climate. Insurers have to balance the need for adequate reserves for claims, maintained profitability and affordable coverage for consumers.
Are health insurance premiums going up in 2024? ›
Every type of private health plan will see premiums increase in 2024. Platinum & Gold tier plans, along with HMO & PPO plans, will see the largest increase in premiums ranging from 6% to 10%. In 2024, health insurance will cost the most in Alaska, Vermont, West Virginia, New York and Wyoming.
Are car rates going down in 2024? ›
But after two years of increases, there are strong indications that auto loan rates could start to come back down in 2024 — perhaps by a substantial amount.
Why is car insurance so expensive all of a sudden? ›
Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.
Why is Liberty Mutual so expensive? ›
Liberty Mutual is so expensive because of agent commissions and rising costs overall for insurance companies. At $1,090 per year, the average Liberty Mutual car insurance policy is a lot more expensive than the national average of $671 per year for a policy with minimum coverage.
Who is Liberty Mutual's biggest competitor? ›
Competitor comparison
- Berkshire Hathaway Inc Headquarters. 396,500. $364.5B.
- The Allstate Corp Headquarters. 53,000. $57.1B.
- Nationwide Mutual Insurance Co Headquarters. $56.8B.
- State Farm Mutual Automobile Insurance Co Headquarters. 53,000. $50.1B.
Progressive has lower average rates than Liberty Mutual, but Liberty Mutual still outscores Progressive in our cost category 9.0 to 7.8. The two companies offer many of the same car insurance discounts, but each one helps drivers save on their policies with unique options.
While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
Why did my car insurance go up when nothing changed? ›
The collective risk factor
You are particularly affected by where you live and the people directly around you. If you live in an area where there is a lot of car theft or a higher number of accidents, your insurance company may assume there is a higher risk that you will also have similar claims.
Why did my car insurance double for no reason? ›
If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.
What is the affordability rate for 2024? ›
The IRS announced that the 2024 health plan affordability threshold—which is used to determine if an employer's lowest-premium health plan meets the Affordable Care Act's (ACA's) affordability requirement—will be 8.39 percent of an employee's household income.
Why are PPO plans so expensive? ›
You can still go to out-of-network doctors, but expect to pay an additional cost. On average, a PPO policy will be more expensive when compared with other types of provider networks, due to its increased freedom and flexibility. What is a PPO insurance plan? What are the differences between a PPO and other networks?
What is the most expensive health insurance? ›
Platinum health insurance is the most expensive type of health care coverage you can purchase. You pay low out-of-pocket expenses for appointments and services, but high monthly premiums. Plans typically feature a small deductible or no deductible and cheap copays or coinsurance.
Why does Geico keep raising my rates? ›
Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.
What age is car insurance most expensive? ›
The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
Does credit score affect car insurance? ›
On average, drivers with poor credit pay 118 percent more for full coverage car insurance than those with excellent credit. California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.
