Travelers issued its first insurance policy in 1864 when its founder charged a Hartford banker two cents for accident protection on his walk home from work. Travelers is now one of the largest insurance providers in the U.S.
Travelers is a well-known, established insurance provider with a long history of covering auto and home claims. Unlike its competitors, though, Travelers does not cover life insurance. Rates are below the industry average but not the cheapest. Yet you’ll have a wide variety of flexible coverage options and discounts to choose from.
You could be best served by a Travelers policy that provides sufficient financial protection that also fits your budget.
Travelers Auto Insurance
Auto insurance is required by 49 states and a smart money move. In exchange for a premium, insurance providers payout for auto body damage and other claims. Since Travelers offers many types of coverage, you can pick and choose to create a desirable policy.
Types of Coverage
- Liability
- Comprehensive coverage
- Collision coverage
- Personal injury protection (PIP)
- Medical payments coverage
- Uninsured or underinsured motorist coverage
- Gap insurance (also known as loan/lease insurance)
- Rental reimbursement
- New car replacement
- Accident forgiveness
- Rideshare driver coverage
- Roadside assistance
Cost of Travelers Auto Insurance
Bankrate estimates the annual cost of Travelers full coverage auto insurance around $1,428 while the national average costs $1,738.
Travelers Auto Insurance Discounts
- Multi-policy: Bundling auto, home, or condo insurance saves up to 13%.
- Multi-car Discount: Insuring two or more cars saves up to 8%.
- Home Ownership Discount: Homeowners save an automatic 5%, even if they don’t insure their house through Travelers.
- Safe Driver Discount: With no accidents, claims, or violations in the last 3 to 5 years, you’ll save 10% to 23%.
- Continuous Insurance Discount: If you haven’t had coverage gaps, you can save up to 15%.
- Green Car Discount: If you own or lease a hybrid or electric vehicle, you’ll get a special discount.
- New Car Discount: Drive a car that’s under three years old? You could save 10%.
- Early Quote Discount: If you’re switching to Travelers and get a quote before your policy expires, you could save 3% to 10%.
- Good Student Discount: If you’re an insured teen or college-aged driver with a B average or greater, it can save you or your parents money.
- Student Away at School Discount: If a covered driver attends school 100 miles away and isn’t driving, you’ll save money.
- Driver Training Discount: Young drivers, or their parents, can save up to 8% if a driver’s education class is on record.
- Financial Incentives: If you pay your premium in full, pay via EFT(electronic funds transfer), or pay on time, you’ll save money.
Travelers Home Insurance
Homeowners insurance covers the cost to fix or replace damage to a home or its contents in certain events like weather or theft. Should you need to replace your belongings or repair your home, homeowners insurance will protect you from the financial risk of these losses.
Types of Coverage
- Dwelling: This covers the home, typically at a level that would cover the estimated cost to rebuild or replace your home after an incident.
- Personal property: This covers personal items, such as furniture, electronics, or sporting goods.
- Personal liability: This protects you in the event a third party sues for injury or property damage.
- Loss of use: This covers your living expenses if you need to move out while your home is repaired after a covered incident.
- Other structures: This covers detached structures, like sheds or garages.
Cost of Travelers Home Insurance
Travelers’ home insurance tends to be competitively priced, with average rates coming in below the national average, says Melanie Musson, an insurance expert with ExpertInsuranceReviews.com. According to Bankrate data, the national annual average cost to insure a $250,000 home is $1,477. Travelers’ average annual premium costs below that at $1,277.
Travelers Home Insurance Discounts
- Multi-policy: Just as with auto, bundling policies saves money.
- New homeowner: New homebuyers get a special price break.
- Loss-free: Expect to see a better rate if you haven’t made claims against your home insurance policy.
- Green home discount: If your home is a certified green home with LEED, the Leadership Energy and Environmental Design organization, you’ll save 5%.
- Protective device: Install protective devices such as smoke detectors, smart home technology, or interior sprinkler system to reduce premiums.
Travelers Insurance Ratings, Customer Satisfaction and Complaints
It’s important to check the financial stability of insurers, says Musson. “If you look at a company that isn’t doing well right now and they’re projected to not do well, that could become a problem,” She says. Musson recommends checking A.M. Best, which gives Travelers the highest long-term rating, which is A++.
Travelers made Fortune’s list of the World’s Most Admired Companies from 2006 to 2020. Not only that, S&P Global ratings speaks to Travelers strong relationships with independent
agents, sophisticated underwriting and claims-management processes, and a refined pricing strategy that helps drive its competitive advantages.
Alongside financial stability, it helps to check customer satisfaction. The National Association of Insurance Commissioners (NAIC) rates customer complaints using a complaint score where 1 is average. Their most recent rating for Travelers is 0.43, meaning that Travelers gets fewer complaints than the average in both home and auto insurance.
Like NAIC, J.D. Power rates consumer satisfaction on claims handling. In the 2020 U.S. Auto Claims Satisfaction Study from J.D. Power, Travelers received a satisfaction ranking of 861 out of 1,000, where the industry average was 872. Travelers’ home insurance offerings received a ranking of 872 out of 1,000 from J.D. Power’s 2020 U.S. Property Claims Satisfaction Study, where the average was 881 of 1,000.
Travelers Auto Insurance
J.D. Power: 861/1,000(out of 1,000) Industry Average: 872/1,000
NAIC: 0.43/1.00, above average.
A.M. Best: A++
Travelers Home Insurance
J.D. Power: 872/1,000) Industry Average: 881/1,000
NAIC: 0.43/1.00, above average.
A.M. Best: A++
Travelers Insurance Pros and Cons
Travelers is a large company with brand name recognition and solid financials. That matters, says Musson: “If a hurricane wiped out the majority of property in a region where most of a small insurance company’s customers lived, the disaster could ruin the company.” This would seriously complicate the claims process.
While Musson says that Travelers’ auto insurance policies tend to be pricier than the competition, she does recommend the company for drivers wanting premium auto insurance policies. “It’s not quite as expensive to add those perks [like] accident forgiveness,” as it would be with other insurers, she explains.
Some customers aren’t happy with the handling of their claim, but “that’s a common complaint in the insurance industry,” says Stevens.
While a good driver can save up to 30% by using Travelers’ IntelliDrive app, Musson does warn that premiums can also go up if you’re not as good of a driver as you think. Other insurers guarantee the policy rate won’t go up with their pay-as-you-drive policies.
Travelers offers home insurance policies for eco-conscious homeowners. For those that appreciate the company’s green initiative, Alice Stevens, senior editor over insurance for BestCompany, a customer review platform, recommends the green home discount and green home coverage. These provide extra protection for the use of green materials when rebuilding after a covered incident.
Pros
As a large, established company, Travelers has an advantage over smaller companies in absorbing the costs of a regional crisis, says Musson
Homeowners and auto policies costs are below the national average
Offers a variety of discounts to help you save
When asked if they’d recommend Travelers to a friend, 8 of 10 customers said yes (the industry average is 6), Stevens reports
A good driver can save up to 30% by using Travelers’ IntelliDrive app
Green initiatives offered during homeowner claims
The NAIC scores Travelers above average with handling of customer complaints
Financial health is strong with the A++ rating by A.M. Best
Substantial discount when bundling home and auto
Cons
Other companies have cheaper homeowners and auto policies
Below average in customer complaints scoring for both home and auto according to J.D.Power
Does not offer life insurance
Not available in all states for all coverage options
Other Policies Offered by Travelers
In addition to life and home insurance, Travelers offers:
- Renters insurance
- Condo insurance
- Boat insurance
- Landlord insurance
- Wedding and special events insurance
- Jewelry insurance
- Travel insurance
- Pet insurance
- Umbrella insurance
Bottom Line
While customer satisfaction could certainly be higher, Travelers has made improvements here. “Customers have been happier with Travelers’ service this past year following natural disasters and COVID-related claims” on damage to home offices, which grew in popularity with the rise of remote work, Musson explains. “[Home office] equipment and electronics added more value when making claims for home damage,” she adds.
Factor in the wide array of coverage options and generous discounts, Travelers could be a wise choice for the customer who wants premium coverage/ from a well-established insurance provider.
The right home or auto insurance policy from Travelers at the right price provides peace of mind and a financial buffer against incidents you’d otherwise have to pay for out of pocket.
Frequently Asked Questions
How do I get an insurance quote from Travelers?
The easiest and fastest way to get an insurance quote is directly on the Travelers website. You can also get a quote by contacting a Travelers insurance agent through its customer service line or calling an independent insurance broker.
Is Travelers a good insurance company?
Yes. Travelers is considered a good insurance company because it has financial stability, a strong credit rating from A.M. Best, and an above-average customer satisfaction score from NAIC.
What is Travelers insurance rating with A.M. Best?
Travelers is rated A++ by A.M. Best.
Why is Travelers insurance so cheap?
While policy rates vary by coverage and geographic region, Travelers can seem cheap because they offer many discounts on home and auto insurance.
