Travelers auto insurance review and ratings

Our take: While Travelers offers rates that are substantially cheaper on average than the big four auto insurers, it has a much smaller share of the market as the ninth-largest car insurer in the U.S. 

“Several factors may contribute to this,” says Siwei Gao, a professor of insurance studies at Eastern Kentucky University. “Stronger brand recognition (among the big four) and marketing efforts that enhance customer loyalty and retention, as well as having more effective distribution channels.”

Travelers has a financial strength rating of A++ (Superior) from AM Best, the highest score possible. But according to research firm J.D. Power's annual U.S. Auto Claim Satisfaction Study, Travelers scores well below average. Still, lower premium rates are important considerations for drivers, and Gao encourages people to include cheaper carriers like Travelers in their comparison shopping.

The carrier "provides competitive rates and could offer savings," Gao says. "However, drivers also need to consider customer service, coverage options, and overall reputation when comparing insurers."

Travelers also offers some car insurance discounts that others don’t, including savings for hybrid and electric vehicle owners, and sells gap insurance.

However, according to the National Association of Insurance Commissioners (NAIC), Travelers has more consumer complaints than the industry benchmark and received below-average marks in J.D. Power’s annual digital experience survey for both customer service and general satisfaction.

How we compared Travelers

To compare Travelers to other auto insurance companies, we examined data from research and analysis firm J.D. Power’s most recent digital experience and claims satisfaction studies.

We also reviewed the CRASH Network's Insurer Report Card, which asks auto body shops around the country how well certain insurance companies handle claims and provide customer service.

In addition, we reviewed data from the National Association of Insurance Commissioners (NAIC) Complaint Index and checked AM Best ratings for financial stability.

Lastly, we collected car insurance rates from the top four largest companies to compare Travelers’ prices to those of its biggest competitors: Allstate, Geico, Progressive, and State Farm.

Travelers versus other top auto insurers

Who are the biggest auto insurers?

The biggest U.S. auto insurance companies by market share are State Farm, Progressive, Geico, and Allstate. These companies make up roughly 56% of the total car insurance market.

Travelers is the ninth-largest auto insurance company, with about 2% of the total market share. In 2023, Travelers had roughly $6.6 billion in premiums written. To compare, State Farm, the largest car insurance company, had nearly $58 billion in premiums written, based on NAIC data.

How do Travelers’ rates compare to other top insurers?

For many drivers, Travelers has cheaper average car insurance rates than the four biggest car insurance companies for liability-only and full coverage.

The rates below were collected from Carlnsurance.com. These rates are for single, 40-year-old drivers with good insurance scores and no violations on their record. The vehicle used for the quotes is a 2023 Honda Accord LX. The sample policies used are state minimum liability insurance, standard liability with coverage limits of 50/100/50, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. With 100/300/100 coverage, the customer is covered up to $100,000 for bodily injury per person, $300,000 for bodily injury per incident and $100,000 for property damage per incident.

How does Travelers do in claims satisfaction?

In the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, Travelers had a score 684, below the study average of 697. The only one of the top four carriers that earned a lower score was Progressive (672).

Travelers earned a C in the CRASH Network’s 2024 Insurer Report Card. However, it’s important to note that none of Travelers’ competitors scored better. Progressive also earned a C, while State Farm, Allstate, and Geico all earned a C-.

What is Travelers’ financial stability?

Travelers has an A++ (superior) financial strength rating from AM Best, the highest possible rating. AM Best is a credit rating agency that grades insurance companies on their ability to meet policyholder and financial obligations and pay claims.

Among the four largest car insurance companies, Allstate and State Farm also have A++ f ratings. Geico and Progressive both have an A+ rating.

Does Travelers receive a lot of complaints?

According to the NAIC Complaint Index, travelers receive more complaints than expected. Its complaint index score is 2.64, considerably above the industry benchmark.

The NAIC maintains a database with the number of complaints an insurer receives in relation to its size. The index benchmark is 1.0. Insurers with more complaints than expected have an index score above 1.00, and companies with fewer complaints have a score below 1.00.

The four biggest car insurance companies have fewer complaints than expected. Allstate’s complaint index is 0.92, State Farm’s is 0.78, Progressive’s is 0.89, and Geico’s is 0.70.

What is Travelers’ digital shopping experience like?

J.D. Power’s 2024 U.S. Insurance Digital Experience Study looks at customers’ shopping and service experience., Travelers digital shopping experience score was 662, below the segment average of 698. In the shopping category, Travelers scored 499 out of 1,000, lower than the study average of 516.

In both areas, Travelers placed lower than the four largest carriers.

Like other major insurers, Travelers has an app where you can make payments, request roadside assistance, file claims, view ID cards, and more. The iOS app has an excellent rating of 4.7 out of 5 stars on the App Store. However, the Android app only has 3.4 stars out of 5 on the Google Play Store.

How is Travelers for shopping in general?

Based on customer feedback, Travelers gets a good score for shopping. In the J.D. Power U.S. Insurance Shopping Study, Travelers was ranked slightly above average, scoring 680 out of 1,000 (the study average is 676). State Farm and Progressive also scored above average, whereas Allstate and Geico were rated below average.

Does Travelers offer usage-based insurance?

Travelers offers a usage-based insurance (UBI) program called IntelliDrive. If you drive safely, you can save up to 30% on your premium. However, poor driving habits can cause your rate to increase.

“Usage-based insurance is a type of car insurance that bases premiums on how much and how well you drive, in addition to traditional factors like age, location, or driving history alone,” says Julie Kress, managing director at Plymouth Rock Assurance.

Key offerings by Travelers

Travelers offers liability and full coverage policies. There are also several endorsements available. Here are some of the key offerings from Travelers:

• Collision insurance
• Comprehensive insurance
• Personal injury protection
• Gap insurance
• Accident forgiveness
• Rideshare insurance
• New car replacement
• Rental car reimbursement

In addition to auto insurance, Travelers also sells home insurance, condo insurance, boat insurance, motorcycle insurance, pet insurance, travel insurance, wedding insurance, business insurance, and others.

Making the choice: Why go with Travelers?

Travelers is an excellent car insurance company to consider if you want cheap rates. It has much more affordable premiums on average than the top four biggest car insurance carriers. The company also offers many discounts that could help you get an even lower rate.

However, Travelers doesn’t have great third-party ratings overall. According to the NAIC, it has more complaints than expected for its size, and it received a C on The CRASH Network’s 2024 Insurer Report Card. Additionally, customers gave Travelers below-average scores for claims satisfaction and digital shopping in recent J.D. Power studies.

Travelers car insurance - Our expert verdict

Travelers, as noted above, has a lot of strengths and is a good choice for consumers looking for cheap rates on liability-only and full coverage insurance.

Methodology

Rates were collected from auto insurance comparison site CarInsurance.com  for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.

AM Best’s Financial Strength Ratings (FSRs) are an independent assessment of an insurer’s financial strength and ability to meet its policy and contract obligations. Best’s FSRs are based on a graded scale from A++ (Superior) to D (Poor). For more information, visit AM Best’s ratings guide. For the latest AM Best credit ratings, visit www.ambest.com 

The National Association of Insurance Commissioners (NAIC) Complaint Index analyzes consumer complaints submitted to state insurance departments. The Complaint Index is used to compare a company’s performance to others in the market. The National Complaint Index is benchmarked at 1.0. For example, a company with a score of 2 has a complaint index that is twice as high as expected in the market. A company’s complaint index score is determined by dividing the number of complaints by its share of premiums in the U.S. market. 

J.D. Power is a marketing, consumer intelligence, and data and analytics company that publishes a variety of studies on the insurance industry and carriers. The rankings included in this story originate from JD Power’s 2024 U.S. Insurance Digital Experience Study, 2024 U.S. Insurance Shopping Study and 2023 U.S. Auto Insurance Study.

CRASH Network’s Insurer Report Card is an annual survey of more than 1,100 collision repair professionals nationwide. Participants awarded each company a grade from A+ to F based on this question: “How well does this insurer's claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” Those polled also indicated whether or not they participate in that insurer's direct repair program.