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 did my car insurance go up in 2024? ›
Increasing Car Repair Costs
Expensive cars like luxury vehicles and high-end sports cars — those with higher repair costs to begin with — were always pricier to insure. But now that repair costs have increased across the board, insurance companies have begun to quickly hike rates to keep up.
Is Liberty Mutual too expensive? ›
Liberty Mutual's car insurance rates are higher than average, but home and renters insurance are affordable. But, it may be a good choice if you're planning to bundle your home and auto insurance and can qualify for a few other discounts.
Why is my renewal more expensive with Liberty Mutual? ›
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.
How much are health insurance premiums going up in 2024? ›
The 2024 average rate increases for both CalPERS and Covered California are: CalPERS: 2024 average rate increase for basic products (HMO, PPO, ASN) = 10.9% Covered CA: 2024 average rate increase for individual market products = 9.6%
Are car rates going down in 2024? ›
Auto loan rates are expected to stop rising and possibly start descending in 2024, but they'll likely remain elevated in comparison to recent years (alongside the broader interest rates environment).
Why did my car insurance go up when nothing changed? ›
As unfair as it may seem, you may experience an auto rate increase due to insurance claims data in your ZIP code. If your area has a high rate of theft, accident, or weather-related claims, it becomes riskier for an insurance company to cover drivers there.
Why are Liberty Mutual rates so high? ›
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 cheaper than Liberty Mutual? ›
Geico: Cost. Geico is usually a cheaper option than other top insurance companies, including Liberty Mutual.
Is Liberty Mutual an honest company? ›
Liberty Mutual is a reliable company when it comes to paying claims. It holds an A financial strength rating from AM Best, which shows its ability to pay out claims to Liberty Mutual customers.
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.
Is Medicare premiums going down in 2024? ›
The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $174.70 in 2024, an increase of $9.80 from $164.90 in 2023. The annual deductible for all Medicare Part B enrollees in 2024 will be $240, an increase of $14 from the 2023 deductible of $226.
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?
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.
Is it normal for insurance to go up every year? ›
Annual increases are typical across the industry, but the way your risk factors are viewed by a particular company may vary. Get to understand your coverage and discounts to ensure you are getting the best price for the assurance you need.
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.
How do you lower your premium on car insurance? ›
Here are some ways to save on car insurance1
- Increase your deductible.
- Check for discounts you qualify for.
- Compare auto insurance quotes.
- Maintain a good driving record.
- Participate in a safe driving program.
- Take a defensive driving course.
- Explore payment options.
- Improve your credit score.
