Yes you have to remove it but it's not that hard, you can use a torch to heat the backing to the bumper and melt it down to fit around the hitch. or just trim it out. It's not that hard just take the bumper off, attach the hitch, and try putting the bumper back on and see where you need to trim. Be careful, use a very sharp knife and you can make it look very good. I prefer the drawtite because it is one piece and has tow hooks. The overall strength of the drawtite it higher.
Wes
Heres another guys install, his pictures helped me out.
http://www.cardomain.com/ride/2132161
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2006 Jeep Liberty Sport (KJ4DIW) Ham / Warn 9500ti
http://www.cardomain.com/id/wesbronco