Travelers Insurance Review
Our Travelers Review
Travelers is one of the largest insurance companies in the country, which translates into a range of coverage options and discounts that will appeal to most auto insurance customers. The company offers standard and supplemental coverage choices to keep you protected in just about any situation. Such a comprehensive selection means you’ll be able to build a personalized policy that fits your needs, with an online quote tool and helpful agents available to help you along the way.
Travelers’ broad coverage is paired with a diverse set of discounts for a variety of conditions, and most customers will qualify for deductions. Granted, there’s no guarantee of low rates — premiums vary based on the individual and insurance company, which makes it important to get quotes from as many providers as possible. But Travelers’ extensive range of deductions provides more opportunities for a broad swath of customers to save on their insurance costs.
But Travelers isn’t perfect: While it might have been our favorite overall provider for its range of coverage options and discounts, the insurer is hindered by low claims satisfaction scores among its customers. When you’ve been in an accident, the last thing you want to deal with is a difficult claims process, and Travelers’ poor evaluations do little to assuage our doubts. Still, with such comprehensive coverage and discounts, Travelers is a worthwhile consideration for most car owners.
Travelers claims to offer “competitive policy options and packages to ensure you get the right coverage at the right price.” It also states that having insurance is about more than protection: “It is about making the process after any incident as simple and stress-free as possible.”
Is it True?
Travelers certainly offers competitive policy options — more than any of the other top contenders from our review of the best auto insurance. The company offers the same supplemental coverage choices we’ve come to expect from major insurers, like roadside assistance and rental reimbursement. But it also offers options that are rare in the auto insurance industry, including accident forgiveness and gap coverage (which pays the difference between the value of a wrecked vehicle and the amount still owed on its loan). Plus, travelers boasts the most discounts of all our contenders, giving you more opportunities to save on monthly premiums and what might amount to your lowest rate for coverage.
But Travelers’ numbers don’t back its claim of simplifying an accident’s aftermath. Auto insurance claims satisfaction is often used to judge overall customer satisfaction because the policyholders are most likely to be critical of their insurance provider when making claims. And Travelers simply can’t keep up. The insurer was given a score of 851 out of 1000 in the 2017 J.D. Power U.S. Auto Claims Satisfaction Study, which places it below the industry average and behind all of our top contenders other than MetLife and Liberty Mutual. So, while you’ll likely be able to find the coverage you need at a price you like, don’t expect Travelers to offer the painless claims handling process you can get from other major insurers.
Travelers’ discounts are largely based on the driver, rather than the vehicle, which means you can see significant savings for simple actions. In addition to deductions for having multiple policies or insuring multiple vehicles under your plan, Travelers offers easily accessible discounts for signing new policies and paying your bill on time, with savings of up to 10% and 15%, respectively. The insurer also includes a 2-3% discount for setting up an electronic funds transfer directly from your bank account to pay your monthly bill, saving both money and the time it takes to manually pay your premium. And like many other major insurance companies, Travelers offers deductions for students who maintain a B-average or higher (8% savings), as well as for students who spend most of the year away at school and only drive when home on vacation (7% savings). This makes policies from Travelers particularly appealing for families with student drivers.
Travelers falls a bit short when it comes to vehicle discounts: Most insurers offer discounts for safety features like anti-lock brakes, anti-theft devices, airbags, and daytime lights, but Travelers doesn’t offer these deductions. That means if you’ve recently purchased a new vehicle, you won’t see any savings from the safety features that often come included in newer models. But you’ll still be rewarded with a new car discount (plus further savings if your car is a hybrid or electric vehicle), and overall, Travelers’ discounts will likely be more accessible for a larger group of people simply because so many of them are based on easily achievable actions like maintaining continuous coverage or taking a driver training course.
Of course, you won’t qualify for every discount available from Travelers. Your eligibility for deductions will vary based on the provider, and it’s a good idea to get multiple quotes in order to ensure you’re receiving the lowest possible rate for the coverage you need. But Travelers offers the most deductions of all our top contenders, giving more customers the opportunity to save. Plus, because so many of those discounts are accessible to all policyholders, Travelers may be the insurer best equipped to give you that lowest possible rate.
A Closer Look at Features
|Price||Quotes will differ from person to person|
|In Business Since||1853|
|Best For||People looking for extensive coverage options, or families with students|
|Not For||People looking for painless claims processing|
|JD Power Insurance Shopping Rating||844 out of 1000 (Above Industry Average)|
|JD Power Auto Claims Satisfaction Rating||851 out of 1000 (Below Industry Average)|
|A.M. Best Financial Strength Rating||A++ (Superior)|
|Moody’s Rating||A2 (Good)|
|Standard and Poor’s Rating||AA (Very Strong)|
Our Deep Dive
- Gap insurance: If you took out loans to help pay for your car, gap coverage (guaranteed auto protection) can be an important supplement to protect you financially in the unfortunate case that your vehicle gets wrecked. Gap insurance pays the difference between the value of your damaged car and the amount remaining on its loans so that you’re not stuck making payments for a vehicle you can’t use. This will be particularly appealing if you’ve recently purchased your car and have a large amount outstanding on your loans.
- Rideshare coverage: Travelers is one of only a few insurance companies to offer coverage specifically intended for rideshare drivers, though it’s important to note that this endorsement is currently only available in Colorado and Illinois. If you work for a service like Lyft or Uber, your vehicle won’t be covered under your personal insurance policy and will instead be subject to the service’s specific guidelines. If you’re involved in an accident while working without either commercial or rideshare coverage, your auto insurer may have grounds to cancel your policy and refuse your claims.
- Accident forgiveness: Travelers understands that accidents happen, even to the best of us. The Responsible Driver Plan is a supplemental coverage option that includes accident forgiveness for one accident every 36 months, as well as minor violation forgiveness for one minor violation every 36 months. This will prevent such incidents from raising the price of your premium.
- New car replacement: If you’re involved in an accident that totals your car, the toll can be especially devastating if the car’s brand new. Thankfully, Travelers offers a program called Premier New Car Replacement which provides you with a vehicle of the same make and model if your new ride is totaled within the first five years.
- Rental reimbursement: Being in an accident is stressful enough without worrying about how you’ll be able to get from place to place afterwards. Travelers’ rental coverage add-on will pay for a temporary rental car if your vehicle is out of commission for more than 24 hours so you never have to worry about how you’ll get back on the road.
- Roadside assistance: Roadsistance assistance coverage keeps you from being stranded after a vehicle failure. Many drivers opt for assistance from a third-party company like AAA, but it’s mostly important to make sure you have coverage for services like towing or fuel delivery, regardless of who’s providing it. We advise comparing rates and policies between your insurer and third-party suppliers: While your insurer may be able to offer lower rates for roadside assistance, using such services might impact your premium, while using companies like AAA won’t make a difference for your monthly rate.
Travelers vs. The Competition
Travelers vs. GEICO
Travelers might have been our favorite overall insurer were it not for its low claims satisfaction scores. Ultimately, that top title went to GEICO, a major company with a range of coverage and discount options that’s also backed by strong financial ratings and high claims satisfaction. Both insurers offer many of the same discounts and supplemental coverage options, though there are a few notable differences: GEICO lacks gap coverage and new car replacement, which means Travelers will be able to provide more thorough protection for new vehicles. But GEICO offers many of the vehicle discounts that Travelers is missing, including deductions for safety features that come standard in many new models. As a whole, GEICO’s discounts skew more toward rewarding vehicles while Travelers does a better job saving money based on a driver’s behavior — it’s up to you to decide which insurer provides the protection you need at a rate you like. As with all insurance matters, your best bet is to get quotes from both so you can do a side-by-side comparison of the plans that will serve your needs.
What Others Are Saying
U.S. News & World Report writes that Travelers is a good investment
In January of 2018, U.S. News & World Report named Travelers as one of the seven best stocks to buy for 2018 based on the funds the company possesses for future investment as well as a history of stability through unstable circumstances. During 2017, a year marred by natural disasters that cost the insurance industry billions of dollars, Travelers managed to retain a profit of $293 million. While this is a smaller margin than in years past, it still demonstrates strong resilience against the significant losses experienced by most insurance companies. Travelers has also maintained steady earnings over the past several years, and while it “isn’t the most terribly exciting stock in the market,” Travelers’ earnings are an indication that the company’s financials will continue to be very strong.
The Bottom Line
Travelers is a solid auto insurance provider no matter how you slice it. With the most supplemental coverage options and discounts of all our top contenders, there’s a pretty good chance that Travelers will be able to build a policy that fits your coverage needs at a price that fits your budget. Although its claims satisfaction score falls below the industry average, Travelers’ comprehensive coverage — backed by strong financial ratings from all the major credit rating agencies — makes it a competitive player in the auto insurance world. If you’re in the market for a new insurer, we highly recommend getting a quote from Travelers.