21 October 2020

Travelers Car Insurance Review for 2020


Get great auto insurance coverage at an even better price.

Travelers had already been around for 33 years when it issued its first automotive policy way back in 1897. The date is significant not just as a bullet on the company timeline, but because, according to Travelers, that policy was the first automotive policy ever written.

During its more than 160-year history, Travelers has had plenty of time to rack up other firsts, including the first accident insurance policy of any kind in 1864, the first aircraft liability insurance in 1919, the first RV converted for use as a mobile claim office in 1968, policies for lunar and space exploration in 1969, and the first discounts for drivers of hybrid vehicles in 2006.

With 30,000 employees and 13,500 independent agents operating in the United States, Canada, the United Kingdom, Ireland, and Brazil, the Hartford, Connecticut, based Travelers is one of the largest providers of personal, business, and specialty insurance. It’s also the only property insurance company listed on the Dow Jones Industrial Average.

  1.     USAA
  2.     Geico
  3.     Allstate
  4.     State Farm
  5.     Farmers
  6.     Progressive
  7.     American Family
  8.     Nationwide
  9.     Travelers

See the Best Car Insurance Companies

Travelers was rated ninth out of the nine companies included in our car insurance survey. While some scores were very close, Travelers was edged out by most competitors in satisfaction with ease of filing a claim, customer service, status updates during the claim process, claim resolution, and value.

While 55% of Travelers customers said they were very satisfied when asked about satisfaction with ease of filing a claim, 12% said the opposite, saying they were very unsatisfied. That was a higher percentage than most competitors. Scores were similar for satisfaction with customer service, with only about 9% saying they were very unsatisfied with customer service from Travelers. Where Travelers really left customers less satisfied was in response to questions about satisfaction with status updates, and notably, with claim resolution. More than 16% said they were either unsatisfied or very unsatisfied with status updates, and Travelers overall scores for claim resolution were lower than all other companies in our survey. Value was another sore point, with just 63% of respondents saying they were either satisfied or very satisfied, while 12% said they were either unsatisfied or very unsatisfied. Most of the negative comments we received about Travelers were related to cost.

OrangeDukeProductions / Getty Images

Still, 70% said they were either likely or very likely to recommend Travelers to someone shopping for insurance, and more than 61% said they were likely or very likely to renew. That compares to just 9% and 13% who responded in the negative to the same two questions.

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings. 

We surveyed 2,732 consumers who filed a car insurance claim in the last five years, asking questions about their car insurance company. Of the survey respondents, 67 filed a claim with Travelers. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies Rankings and this head-to-head comparison.

The Travelers Indemnity Company

To get comparative insurance rates for this study, U.S. News also worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the 10 largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 12,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

See the Cheapest Car Insurance Companies

With an average annual cost in our study of $1,267, Travelers was the fourth least expensive provider of car insurance in our analysis. Only Geico, State Farm, and USAA were cheaper. But even with its relatively reasonable representative rates, Travelers drew complaints from survey respondents about value. 

Group

Average Rate

Single 25-year-old male

$1,416

Single 25-year-old female

$1,363

Married 35-year-old male

$1,295

Married 35-year-old female

$1,267

Married 60-year-old male

$1,146

Married 60-year-old female

$1,114

Travelers rates in our study were between about $75 and $250 less than average for driver profiles in all age groups in our survey, with the greatest savings for younger drivers. The study found an average rate of $1,416 for a 25-year old male profile, compared to an average of $1,669 for all nine companies. For a 25-year old female profile, the rate with Travelers was $1,363 compared to an average of $1,593 for all companies. Travelers’ study rates dropped to $1,295 on average for a 35-year old male profile and $1,267 for a 35-year-old female profile. Those rates are about $75 and $103 less than average, respectively. The rates in our analysis continued to fall as our sample driver profiles aged, with our sample 60-year old male profile paying $1,146 on average, while our 60-year old female paid $1,114. Both are about $115-$120 less than the average for all nine companies in our study. 

To determine the average rates based on gender and age, we created driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Annual Mileage

Average Rate

6,000 miles annually

$1,226

12,000 miles annually

$1,267

How much our sample driver profiles traveled annually made little difference in the representative rates with Travelers. Those who traveled 6,000 miles per year paid $1,226 on average, while our sample drivers who traveled 12,000 miles a year paid just $41 more, or $1,267. Both sample rates are between $145 and $149 less than average. 

We created two driver profiles to compare how annual mileage can change car insurance rates: one with low mileage (6,000 miles per year) and one with high mileage (12,000 miles per year). The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Coverage Type

Average Rate

Low

$1,192

Medium

$1,267

High

$1,335

Opting for high coverage limits rather than low added only $143 more per year for our sample driver profiles with Travelers, which is fairly typical compared to other companies in the study. Minimal coverage had a study cost of $1,192 on average with Travelers, while high coverage was $1,335. The extra expense for more coverage would seem like a wise investment: Given the high cost of medical care and car repairs, $143 won’t buy much of either.

We created identical profiles in our study to represent drivers, then found out how rates changed with the three levels of coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both males and females aged 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis.

Credit History

Average Rate

Good

$1,191

Fair

$1,460

Poor

$2,095 

Our sample driver profiles with poor credit paid around $900 more for car insurance with Travelers annually than those with good credit, or study rates of $2,095 and $1,191, respectively. While not insignificant, that’s less of a difference than the average with many of their competitors in our study, and considerably less than some. With State Farm, for example, the difference was more than $1,500.

Based on profiles of male and female drivers aged 25, 35, and 60, our study verified that credit scores affect car insurance rates. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis. 

Driving Record

Average Rate

Clean record

$1,267

With 1 speeding violation

$1,721

With 1 accident

$1,842

With 1 DUI

$2,430 

The survey found that Travelers charged slightly less than average for our sample driver profiles with violations on their record, even after hefty increases for one accident or a DUI. Those with a clean record paid $1,267 annually on average, among the lowest representative rates in our survey. One speeding violation boosted the study rates by more than $450, to $1,721. Sample driver profiles with Travelers and one accident paid a penalty of $575, bringing their annual premium to $1,842. Still that’s almost $200 less than the $2,028 average for all insurers in our study. One DUI almost doubled the annual rate for our sample driver profiles to $2,430. But even that is slightly less than the average rate of $2,464. 

To find out just how much of an effect a person’s driving record has on insurance rates, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of mileage per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Younger drivers and those with good credit would do well to consider Travelers, as would those who put a high value on service and are willing to pay for it. While Travelers was not the most affordable car insurance choice pretty much across the board, their study rates were among the most affordable for our young driver profiles and those with good credit. Travelers representative rates were competitive regardless of credit rating or driving record, and at least slightly less than average across the board. 

No. 9-ranked Travelers trailed sixth-ranked Progressive across all questions in our survey except value, and how likely survey participants were to recommend their insurance company to others, and how likely they were to renew. Here, scores were close, but Travelers had a slight edge. In terms of cost, neither company was the most expensive nor the most affordable in our study for our sample driver profiles, but Travelers had better representative rates for the young driver profiles. The two companies had very similar study rates for all other age groups. An interesting side note is that while survey participants gave Travelers and Progressive similar scores when asked whether they would recommend their car insurer to someone else, Travelers customers said they were more likely to renew.

Ninth-ranked Travelers Insurance lagged behind fourth-ranked State Farm in scores for every question in our survey. Notably, State Farm had the biggest advantage for satisfaction with how a claim was resolved, and how likely their customers were likely to renew with the company. The study found representative rates between the two were very close, with Travelers costing our sample driver profiles about $35 less annually than State Farm on average. Travelers was much more affordable for our profile with a poor credit score, saving about $650 per year compared with State Farm. For a driver profile with a DUI, however, State Farm was about $750 less. 

Third-ranked Allstate bested ninth-ranked Travelers across all questions in our survey. Allstate had the greatest advantage in response to questions about satisfaction with filing a claim, and likelihood customers would renew their policy with the company. Travelers was about $610 less than Allstate on average for all the driver profiles in our study, with annual representative rates of $1,267 compared to $1,880 for Allstate. For drivers with poor credit or dings on their driving record, the savings with Travelers was especially notable. The rate with Travelers for a driver profile with poor credit was $2,095, almost $1,000 less than the $3,025 our study found with Allstate. For a driver profile with one accident, the rate was $2,673 with Allstate and $1,842 with Travelers. That’s a difference of $831.

Types of Coverage From Travelers Car Insurance 

Travelers offers all the basic types of car insurance, including liability to cover you in the event of property damage or injury to others in a crash where you are at fault; collision coverage to pay for repairs to your car; comprehensive coverage to protect your vehicle against damage caused by anything other than a crash, including theft, vandalism, storm damage, or a collision with an animal; and personal injury protection to pay for medical expenses, lost wages, child care, and other expenses following a crash. Uninsured or underinsured motorist coverage helps pay for damages and medical expenses following a collision caused by someone with no insurance or inadequate coverage, and medical payments coverage helps pay for injuries to anyone in your vehicle.

Other available coverages include gap insurance to help pay the difference between your car’s value and what you owe on it in the event of a total loss, rental car coverage to pay for transportation if a crash takes your car out of commission for 24 hours or more, and 24/7 roadside assistance to provide emergency services such as a jump start, flat tire change, fuel delivery lockout assistance, or limited towing if all else fails. In addition, upgraded Premier roadside assistance adds increased towing of up to 100 miles, trip interruption reimbursement of up to $200 per day for lodging and food if a breakdown occurs more than 100 miles from home, and $500 in personal property insurance for items stolen or damaged following a crash.

Travelers also offers new car replacement coverage to provide you with a new car of the same make and model if yours is totaled within the first five years of ownership, and forgiveness for minor violations and accidents to reduce the likelihood of a rate increase following a claim.

GoodLifeStudio / Getty Images

Most of the complaints we heard about Travelers insurance had to do with cost, and this was reflected in their overall score for value. Big rate hikes following a claim were a common theme.

One respondent says they switched to Progressive for better rates, while another said “I’ve already switched to State Farm.”

Travelers offers discounts of up to 15% for customers who bundle their auto insurance with a homeowners or renters policy, and discounts are also available for combining car insurance with a policy for a boat or other valuables. Multi-car families and individuals may get a discount for including two or more cars on the same policy.

Students who maintain at least a B average or are away at school may also be eligible for a discount, as well as young drivers who complete an approved training course. Drivers who maintain a safe record for three years may be entitled to lower rates, and long-term customers may also get a break. Driving a newer vehicle may translate into reduced rates, particularly if it is a hybrid or electric model. Paying by automatic electronic transfer or payroll deduction may also save you money, as may paying in full or consistently paying on time.

Discounts are also available through partnerships with certain businesses and credit unions, and the IntelliDrive program may entitle you to reduced rates if you consent to using a phone app to track your behavior behind the wheel for 90 days. On the other hand, poor driving habits may make them go up.

Along with car insurance, Travelers offers policies for boats and yachts. Beyond accident, fire, and theft coverage, boat coverage can also include specialized items such as commercial towing and fuel-spill coverage.

With 4,396,705 private auto insurance premiums written and a 1.9% market share, Travelers ranks as the ninth largest car insurance provider in the U.S., according to the Insurance Information Institute. Travelers had total assets of approximately $103 billion and revenue of $23 billion as of the end of 2017.

More information about Travelers Insurance can be found at www.travelers.com. They can also be reached by telephone at 866-943-6938.

Get great auto insurance coverage at an even better price.

U.S. News takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *