Travelers and State Farm are two of the largest and most well-known insurance companies in the United States. Both offer a wide range of insurance products for personal and commercial customers.
But how exactly do Travelers and State Farm compare when it comes to insurance? This comprehensive guide examines the key differences and similarities between Travelers insurance and State Farm to help you determine which provider may be a better fit.
Travelers Insurance Overview
Travelers is one of the oldest and largest property casualty insurers in the US. Some key facts about Travelers insurance:
- Founded in 1864, making it one of the oldest insurance companies operating today
- Offers insurance in property, casualty, transportation, construction, marine, and more
- Has more than 30,000 employees and 13,000 independent agents/brokers
- Holds an A++ (Superior) rating from AM Best and an A+ rating from Standard & Poor’s
- Had over $31 billion in revenue in 2021
- Offers insurance for personal, business, and specialty needs
State Farm Overview
State Farm is the largest auto and home insurer in the United States. Highlights about State Farm insurance:
- Founded in 1922 originally as an auto-only insurer
- Now offers over 100 products and services across 5 lines of insurance
- Employs around 70,000 people and has over 19,000 agents nationwide
- Holds an A++ (Superior) rating from AM Best
- Reported over $59 billion in revenue in 2020
- Specializes in personal insurance but also offers commercial policies
Insurance Products Offered
For individual customers, Travelers and State Farm have extensive offerings across common personal insurance lines:
Auto insurance – Both provide standard auto insurance policies as well as coverage options like rideshare insurance and accident forgiveness.
Homeowners insurance – They offer standard homeowners insurance, renters insurance, condo insurance and more.
Life insurance – State Farm offers permanent life insurance while Travelers provides term life policies.
Umbrella insurance – Both companies offer umbrella insurance to supplement existing liability policies.
Boat insurance – Coverage options are available for small watercraft like motorboats, sailboats, yachts and jet skis.
Some key differences:
Travelers advantages – Offers wedding, event, and special event insurance. Also provides niche coverage like identity fraud expense reimbursement and cyber insurance.
State Farm advantages – Its expansive network of captive agents provides very accessible local support. Also offers whole life insurance and retirement products like annuities.
For business insurance needs, State Farm and Travelers provide extensive offerings:
General liability, commercial property, commercial auto, workers’ compensation, business owners policies, professional liability – offered by both
Specialty products like management liability, surety bonds, loss control services, cyber insurance – offered by both
Some notable differences:
Travelers advantages – Focuses on industries like manufacturing, healthcare, public entities, technology, and asset management. Provides niche policies for railroads, ocean marine, and aviation.
State Farm advantages – Streamlined business insurance package options. Extensive network of agents provides very accessible local support.
Travelers and State Farm offer a variety of ways for customers to save on their insurance premiums.
Common discounts offered by both:
- Good driving record
- New car
- Student away at school
- Defensive driving course completion
Travelers additional discounts:
- Hybrid/electric vehicle
- Early quote
- Affinity membership
- Driver training course completion
State Farm additional discounts:
- Passive restraint systems
- Anti-theft devices
- Farm Bureau membership
- Lengthy relationship with company
Financial Strength Ratings
Both insurers have extremely strong financial positions:
Travelers – Rated A++ (Superior) by AM Best and AA by Standard & Poor’s
State Farm – Rated A++ (Superior) by AM Best and AA by Standard & Poor’s
These exceptional ratings reflect each company’s ability to pay out claims even in periods of major catastrophes or economic downturns. Customers can feel confident that claims will be paid by either insurer.
Customer Satisfaction Ratings
Travelers and State Farm receive excellent ratings for customer satisfaction:
J.D. Power auto claims satisfaction – State Farm ranked 1st, Travelers ranked 2nd in the North Central region
J.D. Power homeowner satisfaction – State Farm ranked 2nd nationally, Travelers ranked 4th
NAIC Complaint Index – State Farm scored 0.58, Travelers scored 0.26 (lower is better)
While State Farm holds a slight edge in satisfaction, both insurers perform very well overall in taking care of their customers.
Travelers Insurance vs State Farm: Pros and Cons
- Offers coverage for high net worth individuals through its Private Client group
- Wide range of specialized business insurance offerings
- Availability of niche personal insurance products
- Accident forgiveness on auto policies
- Coverage for newest car models up to 5 years old
- Limited selection of whole life insurance products
- Home insurance rates tend to be higher than competitors’
- Mixed customer service reviews for handling of claims
State Farm Pros
- Largest agent network of any insurer provides exceptional access
- Smoother online quoting and purchase process through captive agents
- Bundling discounts reward customers with multiple policies
- Rewards safe driving through Drive Safe & Save program
- Excellent customer service reputation
State Farm Cons
- Rates tend to be higher for high-risk drivers
- Fewer discounts than some other top insurers
- Limited niche insurance offerings
- Poorer digital tools and quoting process without an agent
On average, State Farm offers slightly lower car insurance rates than Travelers overall – about $160 per month for State Farm vs $170 for Travelers based on 2021 national averages. However, Travelers is competitive in many states like California and Florida. And Travelers offers additional ways to save through discounts like hybrid/electric and affinity programs.
For homeowners insurance, Travelers rates are around 30% higher on average compared to State Farm according to 2021 national quotes data. But Travelers offers high-end coverage options for luxury homes that State Farm does not provide.
The best way to compare costs is to get an individual quote from both providers using accurate details about your property, vehicles, driving history and more. Prices can vary significantly based on these personal factors.
Travelers vs State Farm: Which is Better?
Overall, State Farm tends to have an advantage for standard personal insurance needs while Travelers leads for specialty commercial policies.
Travelers strengths are its long history, expertise in specialized insurance, and wealth of business coverages. The company is a great fit for high net worth clients, mixed-use homes, and medium or large businesses.
State Farm’s network of captive agents gives it superior accessibility. State Farm’s completely integrated bundle packages and streamlined digital experience are ideal for typical households looking for broad basic coverage. It focuses on value and efficiency for the mainstream consumer.
For most individuals and families, State Farm may be the better choice for simplicity, convenience, and competitive rates. But Travelers offers unique options worth exploring if you have specific risks like high-end collections or hobby farming operations. There’s no one size fits all – so review your own situation in detail before deciding.
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