Liberty Mutual Gives More Than 200,000 Massachusetts Auto Customers the First Look at the Benefits of Competition

BOSTON, Nov. 1, 2007 -- Weeks before Massachusetts auto insurers announce their new product offerings and pricing, Liberty Mutual is giving more than 200,000 customers the first look at some highly anticipated consumer benefits of managed competition. Starting on January 1, 2008, Liberty Mutual will renew Massachusetts policies that carry collision coverage -- and will write new ones -- with its Liberty Advantage(R) endorsement at no additional cost, giving drivers benefits previously unavailable in the marketplace:

  -- New Car Replacement Coverage -- If the driver's new, non-leased car is
     totaled or stolen within the first year and 15,000 miles, Liberty
     Mutual will pay full value for a new one, less the deductible.  A total
     loss specialist will even help locate the new car.
  -- Enhanced Rental Coverage -- A customer's elected rental car coverage
     will be expanded to an unlimited number of days while the damaged car
     is being repaired at a Liberty Mutual-approved repair facility.  The
     customer needs only to allow Liberty Mutual to make the rental car
     arrangements.
  -- Enhanced Towing and Labor -- With existing towing and labor coverage,
     customers who utilize Liberty Mutual's Roadside Assistance will receive
     fully paid towing service to the nearest approved repair facility.
     Previously, customers' towing and labor coverage was subject to a
     policy limit.
  -- Mechanical Parts Replacement -- Liberty Mutual will replace damaged
     mechanical parts -- such as tires and batteries -- without depreciation
     on a covered auto accident.

"Liberty Mutual customers won't have to wait until April to start reaping the benefits of competition -- they are getting a head start with these free enhancements to their policy," said James MacPhee, Liberty Mutual senior vice president and general manager, New England Region. "This is what competition brings to Massachusetts drivers: the opportunity to choose a carrier based on product features, service capabilities, and price."

The Liberty Advantage(R) endorsement also will be standard on new Massachusetts auto policies beginning January 1. Consumers looking for an insurance quote have multiple options: Liberty Mutual is the only Massachusetts carrier that offers them the option to purchase insurance through a local sales representative, a licensed sales counselor at a national call center, or over the Internet.

The company provides superior customer service through its local offices across the state, as well as through national customer service call centers that recently earned recognition for providing "An Outstanding Customer Service Experience" under the J.D. Power and Associates Certified Call Center Program(SM).

About Liberty Mutual

"Helping people live safer, more secure lives" since 1912, Boston-based Liberty Mutual Group (www.libertymutual.com) is a diversified global insurer and sixth-largest property and casualty insurer in the U.S. based on 2006 direct written premium. Liberty Mutual ranks 95th on the Fortune 500 list of largest U.S. corporations, based on 2006 revenue.

The eighth-largest auto and home insurer in the U.S., Liberty Mutual sells full lines of coverage for automobile, homeowners, valuable possessions, personal liability, and individual life insurance. The company is an industry leader in group sponsored voluntary auto and homeowners insurance programs, offering personal lines insurance through payroll deduction and direct billing to employees and members of more than 10,000 companies, credit unions, professional associations and alumni groups.