State Farm Vs. Travelers: Which Insurance Giant Excels?

is state farm better than travelers

State Farm and Travelers are two of the most prominent insurance companies in the United States, both offering a diverse range of insurance products. While State Farm holds a larger market share, Travelers is the older company, with over 160 years of experience in the industry. When it comes to car insurance, State Farm is known for its competitive pricing, extensive discounts, robust financial stability, and highly-rated customer service. On the other hand, Travelers offers a wider range of coverage options, including specialty coverages for rental reimbursement and roadside assistance. When choosing between the two, it's essential to consider factors such as age, driving record, credit score, and the specific discounts and coverages offered by each company.

Characteristics Values
Customer Satisfaction State Farm has better customer satisfaction scores than Travelers.
Affordability Travelers is generally cheaper than State Farm, especially for drivers with a clean record.
Financial Strength Both State Farm and Travelers have excellent financial strength, with State Farm holding the highest rating (A++) from A.M. Best.
Availability State Farm is available in all 50 states, while Travelers is only available in 43.
Discounts State Farm offers a broader range of discounts, with benefits ranging from 30% to 50%.
Coverage Options Travelers offers a wider range of coverage options, including specialty coverages for rental reimbursement, roadside assistance, and more.
Mobile Apps Both State Farm and Travelers offer mobile apps with features such as policy management, claims filing, and roadside assistance requests.
Claim Filing Both companies offer multiple ways to file a claim, including online, over the phone, and through their mobile apps.

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Customer satisfaction

State Farm has received positive feedback and high ratings for its claims processing, with customers attesting to the efficiency and care exhibited by the company when handling claims. In The Zebra's independent customer satisfaction survey, State Farm scored 4.7 out of 5 in Claims Satisfaction and 4.5 out of 5 in Customer Satisfaction, placing third overall. In comparison, Travelers ranked sixth in the same survey, with slightly lower scores of 4.4 in Online Satisfaction and 4.3 overall.

State Farm also scored better than Travelers in J.D. Power's 2023 U.S. Auto Insurance Study and received fewer complaints than expected in the National Association of Insurance Commissioner's Consumer Complaints Index. Additionally, State Farm ranked above Travelers in MoneyGeek's study, scoring 91 out of 100 compared to Travelers' score of 88.

Both companies offer a wide range of insurance products and have excellent financial stability, but State Farm's higher customer satisfaction ratings suggest that it may be more responsive and easier to work with when it comes to handling claims and providing overall customer service.

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Discounts

State Farm Discounts:

State Farm provides a range of discounts to its customers, including:

  • Multi-car discount: If you insure multiple cars with State Farm, you can avail of this discount.
  • Multi-policy discount: State Farm offers a discount if you bundle your home and auto insurance policies with them.
  • Good student discount: Students who maintain good grades may be eligible for a discount.
  • Student away at school discount: If you have a student on your policy who attends school away from home without a car, you can avail of this discount.
  • Safe driver discount: State Farm offers a discount to drivers who have a clean driving record and no accidents or violations.
  • Low mileage discount: State Farm's Drive Safe & Save program offers savings of up to 50% for safe and low-mileage drivers.
  • New vehicle discount: State Farm may provide a discount for vehicles built in 1994 or later, depending on the loss experience of the specific vehicle model.
  • Airbag discount: State Farm offers a discount for vehicles equipped with factory-installed airbags.
  • Anti-theft device discount: If your vehicle is equipped with an anti-theft device, you may be eligible for a discount.
  • Steer Clear program: This program is designed for drivers under 25 and offers savings on car insurance by completing certain requirements, such as watching safe driver videos and taking quizzes.

Travelers Discounts:

Travelers also offers several ways for customers to save on their insurance policies, including:

  • Multi-car discount: Travelers provides a discount if you insure multiple cars with them.
  • Multi-policy discount: If you bundle your home and auto insurance policies with Travelers, you may be eligible for a discount.
  • Defensive driving discount: Completing an approved defensive driving course can help you save on your insurance premium.
  • Good driving discount: Travelers offers a discount for drivers with a clean driving record and no accidents or violations.
  • Homeownership discount: If you own a home, you may be eligible for a discount on your auto insurance.
  • Passive restraint discount: This discount is available for vehicles equipped with factory-installed seatbelts and airbags.
  • Continuous insurance discount: You may be eligible for this discount if you have maintained continuous insurance coverage.
  • Accident-free discount: If you have a clean driving record with no accidents, Travelers offers a discount.
  • Early quote discount: Travelers provides a discount if you get a quote before your current policy expires.
  • Student away at school discount: If you have a student on your policy who attends school away from home without a car, you can avail of this discount.
  • Vehicle safety discount: This discount is available for vehicles with certain safety features, such as anti-lock brakes or electronic stability control.
  • Affinity program discount: Travelers offers discounts for members of certain organizations or employees of certain companies.
  • Safe driver discount: Travelers' IntelliDrive program offers savings of up to 30% for safe drivers.
  • Hybrid/electric vehicle discount: If you own a hybrid or electric vehicle, you may be eligible for a discount.
  • EFT, paid-in-full, and good payer discount: Travelers offers discounts for customers who pay their premiums electronically, in full, or on time.
  • Driver training discount: If you have a young driver on your policy who has completed a driver training course, you may be eligible for a discount.

Comparison:

Both State Farm and Travelers offer a variety of discounts, with some similarities and some unique to each company. State Farm's discounts tend to be more substantial, ranging from 30% to 50%, while Travelers' discounts are generally lower, ranging from 23% to 30%. State Farm also has a broader range of discounts, with 16 compared to Travelers' 17. However, Travelers offers some unique discounts, such as the driver training discount and the hybrid/electric vehicle discount. Ultimately, the availability and applicability of specific discounts may vary depending on your location and eligibility.

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Financial strength

State Farm demonstrates superior financial stability with the highest possible rating, an A++ (Superior) from A.M. Best, indicating its exceptional ability to fulfil insurance obligations. This rating signifies that State Farm has an excellent financial outlook and can confidently handle policyholders' claims.

Travelers also boasts strong financials and is likewise rated A++ by A.M. Best for financial strength. This rating underscores Travelers' robust financial health and its capacity to manage claims effectively.

Both companies have a long-standing presence in the insurance industry, with State Farm founded in 1922 and Travelers in 1864, providing confidence in their stability and experience.

In summary, while both State Farm and Travelers exhibit strong financial positions, State Farm's A++ rating from A.M. Best gives it a slight edge in terms of financial strength. This rating ensures policyholders of State Farm's exceptional financial viability and ability to meet its insurance commitments.

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Average annual premium

When it comes to the average annual premium for car insurance, State Farm and Travelers offer competitive rates, but the former is generally more affordable, especially for drivers with a clean record. The average monthly rates for State Farm are notably lower, making it a budget-friendly option.

For instance, State Farm offers a monthly rate of $86 for drivers with a clean record, compared to Travelers' rate of $99. However, the landscape shifts for drivers with a single ticket, as Travelers charges $134 compared to State Farm's $96.

In terms of homeowners insurance, Travelers offers slightly cheaper premiums compared to State Farm, with an average annual rate of $2,119 versus State Farm's $2,138. It's important to note that these rates may vary based on factors such as your credit score, location, and the estimated cost of reconstruction.

When it comes to age, State Farm offers more affordable rates than Travelers for teen drivers, while Travelers' rates are only 5% cheaper for drivers aged 25 and older.

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Optional coverages

State Farm Optional Coverages:

  • Rental car reimbursement and travel expenses coverage: This helps pay for a rental car if your vehicle is being repaired due to a covered accident and also covers meals, lodging, and transportation if you are in an accident more than 50 miles from home.
  • Emergency road service coverage: Provides assistance if you are stranded due to car troubles, such as a tow or a flat tire repair.
  • Rideshare driver coverage: Offers competitively priced insurance for drivers and passengers of companies like Uber or Lyft.
  • Steer Clear program: A program for drivers under 25 that allows them to save on car insurance by watching safe driver videos and taking quizzes.

Travelers Optional Coverages:

  • Loan/lease gap insurance: Covers the difference between the actual cash value of a totalled vehicle and the unpaid balance of the auto loan or lease.
  • Rental reimbursement: Helps pay for a rental car if your vehicle is damaged in a covered accident and cannot be driven for more than 24 hours.
  • Roadside Assistance: Provides assistance if your vehicle breaks down, such as towing or a dead battery.
  • Premier New Car Replacement: Pays to replace your new car with a new car of the same make and model if it is totalled within the first five years of ownership.
  • Accident Forgiveness: Forgives one accident within a specified period, protecting you from premium increases due to isolated incidents.
  • Limited ride-sharing coverage: Provides limited coverage for drivers who participate in ride-sharing activities, from the time they are available for hire until they accept a request for transportation.

Both State Farm and Travelers offer a range of optional coverages, but Travelers provides more options for add-on coverage. It's important to consider your specific needs and choose the coverages that best suit your situation.

Frequently asked questions

State Farm is the largest auto insurer in the U.S. and offers insurance in all states. It has a range of insurance packages and is the #1 insurer for watercraft. The State Farm app is an award-winning tool for managing your insurance and bank account. However, State Farm does not offer accident forgiveness options and its prices tend to be high.

Unlike other carriers who only offer it for the first two or three years, Travelers’ new car replacement covers the first five years. It also offers accident forgiveness, ride-sharing insurance, and discounts on hybrids and electric vehicles. On the downside, Travelers is only available in 43 states and has lower customer satisfaction scores than State Farm.

State Farm offers lower rates than Travelers for drivers with a clean record, a speeding ticket, teen drivers, drivers with bad credit, and senior drivers.

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