Liberty Mutual Better Car Replacement™ Review

Liberty Mutual has “taken it up a notch” when it comes to the never-ending game of car insurers battling to offer the newest and best auto insurance coverage options. The introduction of “Better Car Replacement™” coverage has gotten some recent attention among insurance professionals and consumers alike.

This program is designed to mimic, and exceed standard new car replacement coverage and loan/lease gap insurance coverage offered by other car insurance companies. In short, if you get in an accident and your car is a total loss, Liberty Mutual will pay you the market value of a car that’s a little better.

How does Liberty Mutual better car replacement work?

When your car is considered totaled, it’s already stressful enough. It’s not uncommon for people to struggle to find a comparable replacement car. In some markets, the suggested market value you might find on sites like Kelley Blue Book don’t match what you actually pay. For some insured drivers, Liberty Mutual’s Better Car Replacement will offer a nice perk to get a better ride. For others, it will help balance out market premiums. Either way, this is an optional coverage that requires you have property coverage on your own car.

Liberty Mutual doesn’t specify how many model years back they’ll go. So check with your agent (your 1966 Shelby might not be replaced with a ’67). Also, remember that standard policies like those you’d get with Liberty Mutual, don’t cover custom parts or the many unique needs of classic cars. You’d have to buy supplemental coverage on top of your collision and comprehensive coverage for custom parts. Cars with multiple custom parts or upgrades are generally insured more effectively by specialty companies that understand the replacement cost and value of custom cars.

Keep in mind that with many insurers you cannot buy a new car replacement on a vehicle that is more than two model years old, but gap insurance may be purchased for any vehicle with a loan/lease regardless of age. Even with TTIA’s critical eye…Better Car Replacement™ is a pretty good deal. Let’s look at the details here to help you determine if this coverage is enough to make current customers stay with Liberty Mutual or convince them to switch insurance companies.

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What does better car replacement with Liberty Mutual insurance look like in real life?

Perhaps you have a 2009 model Ford Mustang with 50,000 miles on the odometer. In the event your vehicle is determined to be a total loss by your claims adjuster, you can expect to be given enough money to purchase a 2010 model Pony with no more than 35,000 miles on it. Liberty Mutual’s car replacement would result in a vehicle that’s one model year newer with 15,000 or fewer miles than the old one. Simple enough, right?

As with any insurance policy, whether auto, homeowners or commercial insurance, the devil is in the details. You need to understand the coverage and talk to an insurance agent who can explain what you might not understand…which for some consumers is quite a bit when it comes to policy coverage.

Like the example above involving custom parts, there are many small things a standard auto policy doesn’t cover. Some companies only offer specialty policies because there is a market left open for it if you’re only looking at standard policies and perks with Liberty Mutual Insurance or other big carriers.

Read More: Liberty Mutual Insurance Review

How do you qualify for better car replacement with Liberty Mutual insurance?

You will almost certainly have to purchase physical damage coverage for the vehicle in question. Both comprehensive and collision coverage cover your car against damage. Liability only coverage is only meant to cover the property damage and injuries of others if you are at fault. Collision coverage covers your car if you’re involved in a collision regardless of whose fault it is. Comprehensive insurance covers other situations from hail storms to deer and other things that aren’t considered collisions. This is also referred to as “full coverage,” meaning coverage for you on top of your liability policy.

If you know you have full coverage, you should talk to your insurance agent about Liberty Mutual’s new car replacement. Often, it just requires the agent or customer to check a box at checkout. Also, note that the cause of loss must be covered by the policy for the coverage to take effect.

How does your deductible affect better car replacement and insurance rates?

Your deductible will still come into play here. If you have a $1,000 auto insurance deductible, using the example above, if the newer (2010) Mustang costs $20,000, you’d get $19,000 from Liberty Mutual. That’s the $20,000 less your $1,000 deductible. If your car needs repairs, you may be responsible to pay the deductible before they’ll start the work. If your car is totaled, they would just pay you the reduced amount.

Read more:

• Liberty Mutual 12-Month Rate Guarantee: Huh?
• Liberty Mutual’s Deductible Fund: Pay Now for a Lower Deductible Later

Keep in mind Better Car Replacement™ does not cover leased vehicles or motorcycles. So you would not have a shot at this coverage if you fit either of those categories. You may also not be able to get this coverage in every state, so again, contact your local Liberty Mutual Agent for details.

Make sure to get several quotes from an independent insurance agent before opting to purchase any new auto insurance policy. While Better Car Replacement™ may be great and come in very handy for some, overpaying for auto insurance never makes sense. If the Liberty Mutual policy is not cost-effective in the first place, it simply isn’t worth your time or money.

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Seamless Claims Process With Liberty Mutual Better Car Replacement

Ease of Filing a Claim

Liberty Mutual offers a streamlined claims process, allowing policyholders to file claims conveniently through various channels. You can file a claim online through their website, over the phone by speaking with a claims representative, or even through their mobile app. This flexibility ensures that you can report a claim in a manner that suits your preferences and circumstances.

Average Claim Processing Time

One of the critical factors in evaluating an insurance company is the speed at which they process claims. While Liberty Mutual doesn’t provide specific data on their website regarding claim processing times, their reputation suggests that they aim to handle claims efficiently.

To get a precise idea of how quickly claims are processed, it’s advisable to reach out to Liberty Mutual directly or consult customer reviews for real-world experiences.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback is invaluable when assessing an insurance company’s claim resolution process. To gauge Liberty Mutual’s performance in this regard, it’s essential to consider reviews and testimonials from policyholders who have filed claims.

Look for insights into how the company handled claims, whether customers were satisfied with the resolutions, and if the payouts met their expectations. This information can provide valuable insights into Liberty Mutual’s claim settlement process.

Exploring Digital and Technological Features of Liberty Mutual Better Car Replacement

Mobile App Features and Functionality

Liberty Mutual offers a user-friendly mobile app that allows policyholders to manage their insurance policies conveniently. The app provides a range of features, including the ability to view policy details, make payments, and file claims from your mobile device.

Additionally, you can access important documents and contact customer support when needed, making it a valuable tool for policyholders on the go.

Online Account Management Capabilities

Liberty Mutual’s online account management capabilities provide policyholders with easy access to their policy information and documents. Through the online portal, you can view and update your policy, review billing information, and track claims progress.

This digital convenience ensures that you have full control over your insurance account and can make changes or updates whenever necessary.

Digital Tools and Resources

Liberty Mutual offers various digital tools and resources to help policyholders make informed decisions. These tools may include insurance calculators, educational articles, and resources to assess coverage options. By leveraging these digital resources, Liberty Mutual aims to empower its customers with the information they need to understand their insurance needs and options fully.

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