State Farm and Travelers are two of the largest car insurance companies in the United States, and both offer many different insurance products.1 State Farm has nearly 17% of the market share, and Travelers has just over 2% market share. Both insurance companies have superior A++ financial ratings from AM Best as well.2
While both are excellent insurers, they shine in different areas. State Farm is available in all 50 states and offers some of the market’s most affordable rates. Travelers is more expensive than State Farm on average and isn’t available in all 50 states. However, Travelers offers a range of discounts and add-on coverage options that might be more appealing to some customers.
Here’s what you should know about each of these insurers so you can decide which one is right for you.
State Farm and Travelers are both well-known, financially secure insurance companies. On average, State Farm has more affordable insurance, according to Insurify data. Additionally, State Farm is available in all 50 states, whereas Travelers is only available in 43.
Travelers and State Farm both offer a few different add-on coverage options, like rental car coverage and roadside assistance. Additionally, both insurance companies provide many different types of discounts. When deciding between these two insurers, see which discounts you qualify for.
Finally, according to the J.D. Power 2023 U.S. Auto Insurance Study, State Farm scored higher than Travelers.
For these reasons, State Farm is an overall better choice than Travelers, and the information in the table below supports this assessment.
State Farm is the largest car insurance company in America and has been in business for more than 100 years. State Farm has an A++ (Superior) financial strength rating from AM Best and offers affordable car insurance.
Travelers insurance is one of the largest car insurance companies in America, ranking in the top 10. It has an A++ (Superior) financial strength rating from AM Best and offers many different types of add-on coverage options and discounts.
Both State Farm and Travelers offer telematics program initiatives to help reward customers for safe driving.
State Farm’s Drive Safe & Save program enables you to save up to 30% on car insurance using your smartphone, which tracks your driving habits. Good drivers can earn discounts.
Similarly, Travelers IntelliDrive can also earn customers savings of up to 30%. Drivers download a mobile app to enroll, and if they drive safely, they’re rewarded. One major drawback is Travelers says premiums could go up if IntelliDrive records riskier driving habits.
Your car insurance rate depends on a variety of factors, such as your age, location, driving record, and even your credit history in many states. On average, State Farm offers lower rates than Travelers insurance.
State Farm and Travelers both offer insurance under $100, on average, for drivers with clean records, but State Farm has lower rates.
Travelers insurance charges more than what State Farm charges to insure drivers with a speeding ticket on their record.
It can be a challenge to find affordable car insurance for young drivers. Travelers insurance costs more than what State Farm charges to insure teen drivers.
If you’re a driver with bad credit, State Farm offers cheaper car insurance than Travelers.
State Farm offers cheaper car insurance than Travelers for senior divers in their 60s.
The most common types of car insurance are liability coverage, uninsured/underinsured motorist coverage, collision coverage, personal injury protection (PIP insurance), medical payments coverage, and comprehensive coverage.
Both State Farm and Travelers offer these main coverage types. However, you might need several add-on coverage options depending on your lifestyle. State Farm offers an array of add-on coverages, from rental car coverage to rideshare coverage. However, Travelers offers even more add-on options, and you can often choose the coverage amounts you need.
Some add-on insurance options that Travelers covers and State Farm doesn’t include loan/lease gap insurance, new car replacement cost, and accident forgiveness.
Both State Farm and Travelers Insurance offer numerous discounts. State Farm offers safe driver, multi-car, and multi-policy discounts. The insurer also offers good student discounts and discounts for students who are away at school.
And State Farm has a unique Steer Clear program. With this program, drivers younger than 25 can save on car insurance by completing program requirements, like watching safe driver videos and taking quizzes.
Travelers Insurance offers more discounts than State Farm. For example, Travelers offers discounts if you own a home or drive a hybrid or electric vehicle. It also offers discounts for driving a new car, and bundling your home insurance and car insurance policies can lead to more savings.
Here’s a more comprehensive look at the discounts each insurer offers.
If you still have questions about whether State Farm or Travelers is better for you, the following answers can help.
In J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study, Travelers scored 871 out of 1,000, slightly below the average of 878.3 This means while many people were satisfied with how Travelers handled their claim, there’s room for improvement.
State Farm is the largest auto insurance company in the nation, with a 16.84% market share. Its biggest competitor is Progressive, which has 14.05% of the market share.
The best alternative to State Farm depends on your personal needs, preferences, and what types of discounts you qualify for. State Farm is the largest and one of the most recognizable car insurance companies in the U.S. An alternative with a similar reputation would be another large auto insurer, like Progressive, Allstate, or GEICO.
State Farm insurance is more affordable on average than Travelers insurance, but Travelers offers more discounts and more add-on coverage options.
Be sure to compare average rates from both insurers. The cost of car insurance policies can vary based on your age, ZIP code, marital status, and more. So, take a closer look at each insurer and decide what coverage levels you need to find the best option for you.
Even if your car insurance quote costs more than the national average, the insurer you select might offer the specific services you need. Additionally, some national insurers offer homeowners insurance, renters insurance, life insurance, and even health insurance. So, it’s possible to get many policies in one place.
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