Liberty Mutual Fined $300,000 in Delaware Over False Insurance Discount Ads

Liberty Mutual is facing a $300,000 penalty from the Delaware Department of Insurance after regulators uncovered nearly 40,000 instances of misleading advertising related to insurance discounts that were not available in the state. The violations, identified during an investigation covering January 2021 through July 2023, primarily involved claims-free discounts on homeowners insurance and safety feature discounts on auto insurance — both of which Liberty Mutual did not offer in Delaware.

The three Liberty Mutual companies involved — Liberty Insurance Corp., Liberty Mutual Personal Insurance Co., and LM Insurance Corp. — collectively write over $59.7 million in premium in the state. An additional $200,000 penalty could be imposed if the company fails to immediately correct the violations.

This is not the first time Liberty Mutual has faced scrutiny in Delaware. A prior investigation from 2018 through 2021 uncovered nearly 35,000 similar advertising violations, resulting in $150,000 penalties for two of its companies. Delaware Insurance Commissioner Trinidad Navarro emphasized that misleading advertising can lead consumers to purchase coverage that does not meet their needs or budget.

While Liberty Mutual cooperated with the department and paid the fine, it did not agree with all of the findings but waived its right to a hearing. The department warned that further violations could lead to additional penalties or restrictions on the insurer’s ability to do business in Delaware.