Which car insurance company is right for you? Compare plans, discounts and rates from State Farm and Travelers.
Choosing between Travelers and State Farm for your auto or home insurance? While both providers have long histories, there are some key differences to consider. In this in-depth guide we’ll compare Travelers and State Farm insurance on critical factors like cost claims satisfaction, financial strength and more to help you make the right choice.
Travelers vs State Farm: At a Glance
| Travelers | State Farm | |
|---|---|---|
| Year Founded | 1864 | 1922 |
| HQ Location | New York City | Bloomington, IL |
| Employees | Over 30,000 | Over 70,000 |
| Market Share | 4.02% | 17.15% |
| AM Best Rating | A++ | A++ |
Both companies have over a century of experience and very strong financial ratings However, State Farm has significantly higher U.S. market share.
Travelers Insurance Overview
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Provides auto, home, renters, condo, motorcycle, RV, boat, umbrella and business insurance
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Sold through independent agents and directly online
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Available nationwide but most popular in Northeastern states
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Known for bundled policies and excellent customer service
Travelers is the second largest commercial lines insurer in the U.S. but also writes policies for individuals. It has a reputation for top-notch claims handling.
State Farm Insurance Overview
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Sells auto, home, renters, condo, life, health and business insurance
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Primarily uses captive agents instead of independent ones
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Largest auto and home insurer in the United States by market share
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Known for affordable pricing due to large scale
State Farm relies mostly on its vast network of agent offices for sales. It leverages its size to offer low rates but has received complaints about claims service.
Travelers vs State Farm: Cost Comparison
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Travelers average monthly auto premiums: $142
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State Farm average monthly auto premiums: $135
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Travelers average annual home premiums: $1,249
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State Farm average annual home premiums: $1,168
State Farm comes out slightly cheaper for both auto and homeowners insurance overall. However, premiums can vary widely based on your location and exact policy details.
Travelers vs State Farm: Discounts Offered
Travelers Discounts
- Multi-car
- Multi-policy
- Good payer
- New car
- New home
- Safety features
- Smart home tech
State Farm Discounts
- Multi-car
- Multi-policy
- Accident-free
- Good student
- New car
- Defensive driving
- Anti-theft devices
The companies offer many of the same savings opportunities. Travelers has more discounts for newer cars and homes while State Farm focuses on driving history.
Travelers vs State Farm: Customer Satisfaction
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Travelers auto claims satisfaction: 89%
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State Farm auto claims satisfaction: 87%
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Travelers home claims satisfaction: 92%
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State Farm home claims satisfaction: 87%
Travelers edges out State Farm for customer satisfaction in both auto and homeowners insurance claims handling.
Travelers vs State Farm: Complaint Index
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Travelers NAIC Complaint Index: 0.26
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State Farm NAIC Complaint Index: 1.00
Travelers has about a quarter of the complaints that State Farm does based on their market shares. This suggests travelers has superior customer service overall.
Travelers vs State Farm: Pros and Cons
Travelers Pros
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High marks for claims satisfaction
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Comprehensive coverage options
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Streamlined online quote process
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Strong financial rating
Travelers Cons
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Light agent network compared to State Farm
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Mobile app needs improvement
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Fewer discounts than some competitors
State Farm Pros
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Low rates with extensive discounts
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Huge network of local agents
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Well-known, established national brand
State Farm Cons
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Below average claims satisfaction
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High complaint volume
-mixed record with the BBB
Bottom Line: Travelers or State Farm?
For affordable rates upfront, State Farm may be preferable. However, Travelers delivers better service and claims handling according to consumer surveys and complaints data. So Travelers is likely the smarter long-term choice.
We suggest getting free quotes from both providers. Compare estimated premiums and weigh Travelers reputation for top-notch customer experience against State Farm’s pricing. For the best of both worlds, buy your policy from State Farm but consider adding gap insurance from Travelers for smoother claims.
State Farm vs. Travelers: What You Need to Know
State Farm and Travelers are two of the most respected insurance carriers in the industry. They both have very high ratings from JD Power, Moody’s, and S&P. They offer a lot of different types of insurance.
State Farm was founded in 1922 by George Jacob “G. J. ” Mecherle, a retired farmer and insurance salesman. At first, State Farm only sold auto insurance. Now, they offer more than 100 different types of insurance across 5 different lines. As of 2017, State Farm has 70,000 employees and 48,000 agents. They have more agents than any other company, and those agents take care of 83 million policies and accounts across the U.S. S.
For more than 160 years Travelers Insurance has been protecting homes, cars, valuables, and businesses. It is said that they are one of the best property and casualty companies in the business, and they are the only one in the Dow Jones Industrial Average. Thirty thousand people work for the company, and another thirteen thousand are independent agents and brokers in the US, Canada, the UK, Ireland, and Brazil.
Below is a list of average rates, rankings, products and discounts for the two companies. For full company overviews, you can visit State Farm Overview and Travelers Overview.
State Farm or Travelers: Insurance Products Offered
State Farm and Travelers both offer a wide range of insurance products. Both companies offer your standard types of coverage including Auto, Home, Renters, Condo, Boat, Motorcycle, and Business insurance. Travelers doesn’t offer life insurance, but State Farm does. They only offer term life insurance through a subsidiary. Travelers offers more niche products than State Farm, including Energy Insurance, Cyber Insurance and Construction Insurance.
| Insurance | State Farm | Travelers |
|---|---|---|
| Car Insurance | ✔ | ✔ |
| Homeowners Insurance | ✔ | ✔ |
| Renters Insurance | ✔ | ✔ |
| Boat Insurance | ✔ | ✔ |
| Condo Insurance | ✔ | ✔ |
| Motorcycle Insurance | ✔ | ✔ |
| Business Insurance | ✔ | ✔ |
| Life Insurance | ✔ | ✔ |
| Wedding Insurance | ✔ | |
| Landlord Insurance | ✔ | ✔ |
| Rental Property | ✔ | ✔ |
| Short-term Disability | ✔ | |
| Off-road Vehicle Insurance | ✔ | ✔ |
| Medicare Supplement | ✔ | ✔ |
| Long-term Disability | ✔ | ✔ |
| Surety Bonds | ✔ | ✔ |
| Energy & Renewable Insurance | ✔ | |
| Financial Institutions | ✔ | |
| Manufacturing | ✔ | ✔ |
| Risk Control Services | ✔ | |
| Umbrella Insurance | ✔ | ✔ |
| Cyber Insurance | ✔ | ✔ |
| Workers Compensation | ✔ | ✔ |
| Construction Insurance | ✔ | ✔ |
| Premiums Business Audit | ✔ | ✔ |
GEICO vs Progressive vs State Farm vs Travelers vs Amica vs Chubb Auto Insurance 2024 RISK S1•E17
FAQ
How reliable is traveler’s insurance?
Is Travelers good about paying claims?
How does traveler’s insurance compare to other companies?
Does State Farm have a good reputation for paying claims?
Is state Farm cheaper than travelers?
If you have a DUI on your record and are looking for more affordable premiums, State Farm tends to be the much less expensive option with average rates of $179 a month compared to $205 from Travelers. Find your best rate in just a few minutes How does Credit Score Impact State Farm and Travelers Rates?
What is the difference between travelers and State Farm car insurance?
When comparing car insurance policies from Travelers and State Farm, the two providers come pretty close to one another. While Travelers has higher insurance rates across the board, the insurer offers a wide range of coverage options that may appeal to certain drivers over State Farm’s insurance products.
Does state Farm pay more for travelers than men?
Therefore, insurance carriers will tend to offer men more expensive prices. On average, men see premiums about 7% per month higher with State Farm, while with Travelers, the difference is closer to 6% a month. Looking at the data for each company specifically, State Farm comes out as the lowest option for both genders.
How are State Farm & travelers rated?
As two of the largest insurance companies in the United States, State Farm and Travelers are reviewed and rated by both customers and third-party evaluators based on a variety of factors. We’ve collected some of these recent ratings to help you determine each company’s customer satisfaction standards, complaint ratios and financial security scores.