State Farm vs. Travelers Car Insurance: Expert Recommended (2024)

Introducing the battle of the insurance giants: State Farm and Travelers. Our data reveals an intriguing competition between these two industry leaders, where rates hinge on factors ranging from a clean driving record to a less-than-ideal credit score. For those with pristine records, State Farm takes the lead with a monthly rate of $86, trumping Travelers at $99. However, the landscape shifts for drivers with a single ticket, as Travelers charges $134 compared to State Farm’s $96. Dive into our analysis to uncover how these insurance titans navigate the nuances of discounts, with Travelers offering substantial savings for anti-theft measures and safe driving, while State Farm edges ahead in catering to seniors and low-mileage drivers.

State Farm

Pros:

• Affordability: State Farm generally offers lower rates, especially for drivers with a clean record.
• Discounts: State Farm provides higher discounts, ranging from 30% to 50%, including benefits for low mileage, new vehicles, airbags, and the use of their driving app.
• Financial Strength: State Farm holds the highest rating (A++) from A.M. Best, indicating superior financial strength.
• Customer Service: Positive customer feedback and high ratings for claims processing.

Cons:

• Credit Score Impact: Rates may significantly increase if you have a bad credit score.
• Limited Discounts: While State Farm has more discounts, some are specific and may not apply to all policyholders.

Travelers

Pros:

• Coverage Variety: Travelers, being one of the industry leaders, offers a wide range of coverage options, including specialty coverages for rental reimbursement, roadside assistance, and more.
• Discounts: Although fewer, Travelers still provides discounts (23% to 30%) for safe driving and being claim-free.
• Mobile App Features: Both State Farm and Travelers offer comprehensive mobile app features for convenient policy management.

Cons:

• Higher Rates: Travelers tend to have higher rates, especially for teen drivers, and may be less affordable for some.
• Credit Score Impact: While not as severe as State Farm, traveler rates can increase with a lower credit score.
• Discounts: Travelers’ discounts, although available, are generally not as substantial as those offered by State Farm.

State Farm and Travelers Car Insurance Based on Age

Generally speaking, the older we get, the more driving experience we have. This is why car insurance companies use age as one of the most influential factors in determining your insurance rate.

It’s legal to base car insurance rates on marital status and gender in most states; however, some have outlawed this practice. Let’s compare State Farm vs. Travelers car insurance rates based on age, gender, and marital status.

State Farm vs. Travelers Average Annual Car Insurance Rates by Age, Gender, and Marital Status

Travelers car insurance rates are only 5% cheaper than State Farm car insurance rates for drivers 25 and older.

However, Travelers is 66% more expensive than State Farm for teen drivers.

If you want a concentrated view of both companies, check out our State Farm insurance reviews and our Travelers insurance reviews for more details.

State Farm and Travelers Car Insurance Based on Driving Record

Speeding tickets, accidents, or DUIs on your driving record will raise your car insurance rates no matter what company you pick because these infractions make you a greater risk to insure. Any auto insurance company is going to look at what makes a driver high-risk, which means that if you don’t have a clean driving record, you could end up paying more for coverage.

State Farm vs. Travelers Average Annual Car Insurance Rates by Driving Record

In general, State Farm has cheaper car insurance rates than Travelers for drivers with any type of driving record.

However, Travelers is much more punitive with customers who get a speeding ticket, cause an accident, or get a DUI.

If you get a speeding ticket or cause an accident while with Travelers, expect your rates to increase by 24%. If you get a DUI, your car insurance rates will increase by 67%.

If you get a blemish on a clean driving record with State Farm, your rates will not increase as much as with Travelers. Your State Farm car insurance rates will only increase by 13% to 29% for a traffic violation.

In situations like these, it’s best to consider taking a defensive driving course. There are plenty of ways to practice safe driving habits and to make your record cleaner. That way you can begin to keep your insurance costs down no matter which company you choose.

State Farm and Travelers Car Insurance Based on Credit Score

Your good credit score can drop in a matter of months if you experience some type of financial trauma, like incurring medical debt or going through a divorce.

In most states, it’s legal for car insurance companies to base rates on your credit score; however, some are outlawing this practice and basing rates on gender and marital status.

Car insurance companies justify using your credit score based on the assumption that those with higher credit scores are more responsible and safer drivers who are less likely to file a claim.

Let’s take a look at how State Farm and Travelers set rates for drivers with different credit scores.

State Farm vs. Travelers Average Annual Car Insurance Rates by Credit History

The State Farm car insurance rates come in cheaper than the Travelers rates if you have bad credit.

If your credit score tanks while with State Farm, expect to pay more than twice as much as drivers with good credit. On the other hand, Travelers’ car insurance rates will increase by only 27%.

Before you judge these two companies’ rates based on credit score alone, read about your state’s car insurance laws and examine rates from a variety of companies.

State Farm and Travelers Car Insurance Discounts

Car insurance discounts vary widely — that’s why it pays to shop around. If you have a bad driving record or low credit score, discounts can help offset your high rates.

State Farm vs. Travelers Car Insurance Discounts

When comparing all discounts that the companies offer, State Farm has a total of 16 car insurance discounts while Travelers has 17 discounts. However, Travelers’ car insurance discounts are not as hefty.

State Farm’s best discounts range from 30% to 50%. These include discounts for low mileage, driving a new vehicle, having airbags, and using the company’s driving app or device.

Travelers’ best discounts range from 23% to 30%. Both State Farm and Travelers offer the same discount amount for being claim-free (15%) and being a safe driver (23%).

Read more: What discounts are available for Travelers car insurance customers?

Compared to State Farm’s 50% discount for using its driving app or driving device, Travelers only offers a 30% discount.

The discounts offered by State Farm vs. Travelers car insurance companies often target specific types of drivers, so if you call to get your Travelers and State Farm quotes, be sure to ask about any additional discounts.

You should also ask about bundling your policies for even more savings. Compare State Farm vs. Travelers renters insurance or State Farm vs. Travelers home insurance and see if one of these policies might serve your needs.

Types of Car Insurance Coverage Offered by State Farm and Travelers

Since State Farm and Travelers are two of the 10 companies that make up most of the industry market share, they have the means to offer a wider variety of car insurance coverages that go beyond the standard six coverages listed below.

Be sure you understand the various car insurance coverage types before purchasing each one:

• Liability car insurance coverage (bodily injury and property damage)
• Comprehensive car insurance coverage
• Collision car insurance coverage
• Uninsured/underinsured car insurance coverage
• Medical payments (MedPay) car insurance coverage (particularly important in states that require no-fault car insurance)
• Personal injury protection (PIP) car insurance coverage

Read more: How does the car insurance claims process differ for uninsured/underinsured motorist coverage with State Farm?

Be sure to take a closer look at specialty coverages, such as rental reimbursement, roadside assistance, guaranteed auto protection (GAP), mechanical breakdown, and insurance for recreational vehicles such as ATVs or boats.

State Farm vs Travelers Car Insurance: Mobile Apps

Usage-based car insurance has become an industry trend in the last decade, and all of the bigger car insurance companies offer an app or a device installed in your car to evaluate your driving for a discount.

Large car insurance companies also provide a more general app to enable you to view your policy, make changes, and pay your bill.

Usually, your State Farm login or Travelers Insurance login will work with both the general app and the driving app.

Seamless Claims Process With State Farm vs. Travelers Car Insurance

Ease of Filing a Claim

When it comes to filing a claim with State Farm or Travelers car insurance, policyholders have multiple options available. Both companies offer convenient ways to initiate a claim, including online, over the phone, and through mobile apps. This flexibility ensures that customers can choose the method that suits them best, whether they prefer the convenience of a mobile app or a more traditional phone call.

Average Claim Processing Time

The average claim processing time can be crucial for policyholders looking for a quick resolution after an accident or incident. While specific processing times may vary depending on the nature of the claim and individual circumstances, both State Farm and Travelers strive to provide efficient and timely claims processing.

It’s essential to reach out to your insurance company for specific information on claim processing times based on your situation.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback plays a significant role in assessing the quality of an insurance company’s claim resolutions and payouts. Policyholders often share their experiences, both positive and negative, to help others make informed decisions.

To gauge customer satisfaction with claim resolutions and payouts, it’s advisable to explore online reviews, customer testimonials, and any available ratings from reputable sources.

Read more: Will my insurance premium increase if I file a car insurance claim with State Farm?

Exploring State Farm vs. Travelers Car Insurance Cutting-Edge Digital and Technological Features

Mobile App Features and Functionality

In today’s digital age, mobile apps have become integral for managing insurance policies. Both State Farm and Travelers offer mobile apps with a range of features and functionality. These apps typically allow policyholders to access their policy details, make payments, file claims, and even request roadside assistance, making it convenient to manage insurance matters on the go.

Online Account Management Capabilities

Online account management is a key feature offered by State Farm and Travelers. Policyholders can log in to their accounts through the respective company’s website to access policy documents, view billing information, update personal details, and track claims. The ease of online account management contributes to a smoother and more efficient customer experience.

Digital Tools and Resources

Insurance companies like State Farm and Travelers provide digital tools and resources to assist policyholders in making informed decisions. These tools may include calculators to estimate coverage needs, educational materials on various insurance topics, and resources to help with claims documentation.

Leveraging these digital resources can empower policyholders to navigate their insurance journey effectively.

State Farm and Travelers Financial Strength and Customer Satisfaction

Buying car insurance is a big financial responsibility, so you want to make sure you’re choosing the right company that will be there for you when you need it.

A company’s financial strength, customer satisfaction with the claims process, and number of customer complaints should be examined before you make your decision.

The following three agencies provide insight into these factors:

A.M. Best scores companies based on their ability to meet their ongoing insurance obligations, such as balancing premiums collected and claims paid. The highest score A.M. Best award is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction with the State Farm claims process and the Travelers claims process, step by step.

In its 2017 survey, 27 insurance companies were rated, and scores ranged from 86 to 96.

The National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers vs. the total number of complaints. In 2017, the national average complaint ratio was one. The lower the ratio, the better.

Let’s take a closer look at external ratings for State Farm and Travelers.

State Farm vs. Travelers Company Ratings

State Farm earns the highest rating (A++) from A.M. Best, and both State Farm and Travelers are on top of things when it comes to external ratings by government and consumer agencies.

You’ll have a good experience with State Farm and Travelers customer service, and you can expect both to handle your complaints with care.

It’s up to you whichever company is a better fit.

State Farm vs. Travelers: The Bottom Line

While State Farm and Travelers offer similar coverage, State Farm typically has cheaper rates and better discounts. Both companies have good financial and customer service ratings.

Before you decide between State Farm vs. Travelers auto insurance, use our free comparison tool to see the best car insurance quotes from companies in your area.