Some Drivers to See Rates Fall 35 Percent or More as Liberty Mutual Delivers New Products and Services, New and Enhanced Discounts to Massachusetts Consumers

Customers of State's 4th-Largest Auto Insurer to See Rates Drop an Average 10.7 percent in Massachusetts' Newly Competitive Market

BOSTON, Nov. 19 -- Fulfilling the promise that competition will benefit Massachusetts drivers, Liberty Mutual today filed auto insurance rates that, on average, are 10.7 percent lower than its state-set rates from 2007, with some drivers seeing their premiums plummet 35 percent or more. The new rates, as well as new product benefits and new and enhanced discounts, if approved by the Division of Insurance, are effective April 1, 2008,

"New product features and new discounts -- this is what competition brings to drivers," said James MacPhee, Liberty Mutual senior vice president and general manager, New England Region. "Accident forgiveness? Not in Massachusetts before managed competition. Under the old rate-setting system, consumers did not see companies enhancing their products or providing new discounts."

Indeed, a forgiveness program highlights Liberty Mutual's new standard Liberty Advantage(TM) automobile policy available April 1. This benefit waives the premium surcharge for an at-fault accident for customers who have been clean of incidents for the past five years while insured by the company. The standard policy also features the recently announced additions available January 1, 2008, to current Liberty Mutual customers, such as a new car replacement program for vehicles totaled or stolen in their first year or 15,000 miles, a rental car benefit that waives the time limit on coverage, enhanced towing and labor coverage, and full-value replacement of damaged mechanical parts (such as tires, mufflers and batteries).

Customers in the market for a broader array of benefits can choose to purchase Liberty Advantage Plus(TM). This enhanced policy includes the same Liberty Advantage benefits, plus:

  -- Better Car Replacement Coverage - An extension of the new car
     replacement program, customers with older cars enduring a similar total
     loss or theft receive the actual cash value, less the deductible, for
     their same vehicle as if it were one year newer.

  -- Full Accident and Violation Forgiveness - Long-term, incident-free
     customers will maintain their safe driver credit in addition to
     surcharge relief for an at-fault accident or moving violation.

Liberty Mutual's rate filing introduces to Massachusetts discounts that the company has long provided customers in most other states:

  Good Student Discount         10% for a B grade average
  Driving Years Discount        up to 20%
  Preferred Discount            up to 16%

Liberty Mutual also is increasing a variety of discounts and credits over 2007:

  Public Transit Credit         15%
  Multi-Car Discount            up to 10%
  Low Mileage Discount          up to 13%, for less than 10,000 annual miles
  Driver Training Discount      up to 15% (0-3 years licensed)

"Our rate plan rewards our customers for their loyalty, continues all current affinity discounts we have with nearly 1,200 groups, and gives incentive to every Massachusetts driver to join Liberty Mutual," said MacPhee. "In fact, we'll even credit new policyholders to help offset any short-rate penalty they are charged by their carrier if they choose to come to us before their current policy expires."

Consumers looking for an insurance quote have multiple options: Liberty Mutual is the only Massachusetts carrier that offers the choice 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 (http://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.

Liberty Mutual Group has nearly 4,400 employees located in 33 offices across Massachusetts. Overall, Liberty Mutual Group has over 40,000 employees located in more than 900 offices throughout the world.