Is Travelers Good for Auto Insurance?
Last Updated on October 15, 2020
You may not have heard of Travelers before. They don’t have lot of fancy commercials on TV or flashy billboards along the highway, but they are still one of the biggest insurance companies in the country. What kind of insurance do they sell? How are their rates? Are they a good option for your car insurance? Learn more about Travelers in our Travelers auto insurance review below.
What is Travelers?
The Travelers Companies, aka Travelers, is one of the largest insurance companies that people usually haven’t heard of. That’s because they specialize in writing commercial insurance, which is insurance for businesses. Travelers is especially good at writing commercial insurance policies for very large companies, which has helped make them the 2nd largest insurance company in the US for commercial property insurance.
Travelers is also one of the oldest insurance companies in the United States, having been founded in 1864 in Hartford, CT. A predecessor company was founded even before that in Minnesota, in 1853.
Today, it’s headquartered in New York City, incorporated in Minnesota, and maintains its largest office in Hartford, Connecticut.
Travelers is the 106th largest company in the United States on the Fortune 500 list, with annual revenues of over $28 billion and over 30,000 employees. Travelers operates exclusively through a network of over 14,000 independent agents.
Despite being primarily known for its commercial insurance, Travelers is actually the 9th largest personal auto insurance company in the US, coming in behind Nationwide.
|A.M. Best Rating||A++ (Superior)|
|Better Business Bureau Rating||A+|
|Consumer Reports Rating||90|
|J.D. Power Claims Satisfaction Rating||866|
How are Travelers’ Rates?
Despite being the 9th largest auto insurance company in the US, Travelers is known for being a primarily commercial insurance company for a reason. Travelers has average rates, but like with every insurance company, your rate with Travelers will depend on many factors.
In addition to those factors, each insurance company has specific locations that they are very competitive in, and others that they are not even close. Travelers has its pockets across the country that its rates are very good, while in other locations they won’t be as affordable.
Generally speaking, Travelers’ rates are going to be similar to other large insurance companies. If you don’t have good credit and have been in one or two accidents in the past 3 years, then Travelers likely won’t be competitive for you.
However, Travelers does offer a wide variety of discounts that could help lower your premiums.
Which Discounts & Coverages does Travelers Offer?
If Travelers has decent base rates for you, then their wide range of discounts and coverages could help them to become the most competitive option for you.
In addition to all of the normal discounts, such as the multi-policy discount, multi-vehicle discount, safe driver discount, good student discount, Travelers also offers a few other discounts that aren’t quite as common.
For example, they offer a distant student discount, which is applied to a student driver who is away at school and does not have a car with them. They also offer an EFT (electronic funds transfer) discount for people who like to pay automatically each month from their checking account.
Travelers even offers a discount for just paying your bills on time and for doing a quote with them before your old policy expires (advance quote discount). They also offer discounts for newer vehicles less than 3 years old, as well as discounts for having a hybrid or electric vehicle.
Finally, Travelers offers a telematics program called IntelliDrive, which tracks certain aspects of your driving and could result in up to a 20% discount.
Travelers also offers an extensive amount of coverages. They offer GAP insurance, which is important for people that have loans on their newer vehicles. GAP insurance essentially covers the rapid depreciation in a car’s value, since the car’s worth will drop faster than what you will still owe on your loan. GAP covers the difference between what the insurance company pays for your car and the amount that you still owe on your loan.
Accident Forgiveness is another important coverage offered by Travelers. This is only eligible in some states, and also requires you to be accident-free for the last 5 years. If you are, then you can enroll in Accident Forgiveness and Travelers will guarantee that your premium won’t increase as a result of your first accident with them.
Finally, Travelers offers New Car Replacement on newer vehicles. It serves a similar purpose as GAP insurance, in that Travelers will replace your new car with a similar make and model, rather than simply paying the depreciated value of it.
What Other Insurance Products Does Travelers Sell?
If you need to purchase other types of insurance, it’s usually a good idea to buy them all from a single insurance provider. This way you can take advantage of bundling discounts. Many people buy home insurance and auto insurance from the same company, for example, and save from 10 to 25% off their annual premiums.
We’ve already established that Travelers sells commerical and auto insurance policies, but what other types of insurance do they sell?
|Other Types of Insurance Offered by Travelers|
|Condo insurance||Identity theft insurance|
|Renters insurance||Boat and yacht insurance|
|Farm and ranch insurance||Commercial auto insurance|
|Umbrella insurance||Business insurance|
|Travelers insurance||Landlord insurance|
How is Travelers with Claims and Customer Service?
Travelers receives average marks and reviews for its claims service, which could be a drawback. There are an equal number of satisfied Travelers customers as there are unhappy ones, but the company does not stand out above the rest when it comes to claims and customer service.
In the 2020 JD Power Auto Insurance Study, Travelers did not fare too well. They received Below Average marks for both auto insurance shopping experience and property claims experience.
At US News and World Report, Travelers scored a bit better on their car insurance survey. 55% of respondents said they were very satisfied with Travelers’ ease of filing a claim and 70% of respondents said they were likely to recommend Travelers to somebody shopping for auto insurance.
Final Word – Travelers Auto Insurance Review
If you have a good credit score and a good driving history and can maximize the wide variety of discounts offered, then Travelers could be a great option for your auto insurance. It’s a good company with a long history, so it’s worth checking out if you meet that criteria.
If you strongly value excellent claims service or don’t have a good credit score or a good driving history, then Travelers likely won’t be a good option for you.
|Travelers Insurance Company Info|
|Address||385 Washington Street
St. Paul, MN 55102
|Customer Service Number||(800) 842-5075|
|Claims Number||(800) 252-4633|