State Farm vs. Travelers: Which Is the Best? (2024)

State Farm’s low prices, availability in all 50 states, high customer satisfaction, and high IQ Score make it the clear winner.

Catherine Collins
Catherine Collins

Catherine leverages her background in education and finance to write articles that help readers make informed decisions about their insurance and finances.

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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated November 21, 2024

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State Farm and Travelers are two of the largest car insurance companies in the United States, and both offer many different insurance products.[1] State Farm has nearly 17% of the market share, and Travelers has just over 2% market share. Both insurance companies have superior A++ financial ratings from AM Best as well.[2]

While both are excellent insurers, they shine in different areas. State Farm is available in all 50 states and offers some of the market’s most affordable rates. Travelers is more expensive than State Farm on average and isn’t available in all 50 states. However, Travelers offers a range of discounts and add-on coverage options that might be more appealing to some customers.

Here’s what you should know about each of these insurers so you can decide which one is right for you.

Quick Facts
  • State Farm is the largest insurance company in the United States.

  • Travelers insurance offers unique add-on coverage options, like accident forgiveness and new-car replacement.

  • On average, State Farm offers cheaper insurance rates than Travelers and might be a better option for customers looking for affordable auto insurance rates.

State Farm vs. Travelers: The verdict

State Farm and Travelers are both well-known, financially secure insurance companies. On average, State Farm has more affordable insurance, according to Insurify data. Additionally, State Farm is available in all 50 states, whereas Travelers is only available in 43.

Travelers and State Farm both offer a few different add-on coverage options, like rental car coverage and roadside assistance. Additionally, both insurance companies provide many different types of discounts. When deciding between these two insurers, see which discounts you qualify for.

Finally, according to the J.D. Power 2023 U.S. Auto Insurance Study, State Farm scored higher than Travelers.

For these reasons, State Farm is an overall better choice than Travelers, and the information in the table below supports this assessment.

Factor
State Farm
Travelers
IQ Score9.39.0
J.D. Power customer satisfaction score833 out of 1,000806 out of 1,000
Average quote: liability only$54$89
Number of discounts advertised1012
Number of states where it operates5043
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

State Farm

State Farm is the largest car insurance company in America and has been in business for more than 100 years. State Farm has an A++ (Superior) financial strength rating from AM Best and offers affordable car insurance.

Compare personalized, real-time quotes
User Reviews
3.2
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$54/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$119/mo

State Farm is the largest U.S. auto insurer by market share and has operated for more than 100 years. Available in all 50 states, State Farm stands out for its customer service, extensive discounts, and optional coverages. The insurer ranked fifth for overall customer satisfaction in the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. Safe drivers can enjoy many State Farm discounts, including ones for young motorists who complete an approved driver training course, for having a vehicle with certain safety equipment, and for going three years or longer without violations or at-fault accidents.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

  • Savings for bundling auto with home, renters, condo, or life insurance

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

  • Accident forgiveness limited to longtime customers with clean driving records

Read more driver reviews of State Farm
Charles - November 19, 2024
Verified

New Car Price

State Farm is preferred due to its loyalty and pricing. Despite my vehicle being 20 years old, the policy is priced as if it were 2 years old.

Ronald - November 19, 2024
Verified

State Farm Experience: 35 Years+

They are forcing me to replace my house roof or they will cancel my policy.

David - November 19, 2024
Verified

Too expensive

It's too expensive. They raise rates every six months, even though I've never filed a claim.

Travelers

Travelers insurance is one of the largest car insurance companies in America, ranking in the top 10. It has an A++ (Superior) financial strength rating from AM Best and offers many different types of add-on coverage options and discounts.

Compare personalized, real-time quotes
User Reviews
3.4
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.0/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$89/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$191/mo

Travelers is the sixth-largest insurer in the U.S. by market share and has been in business for more than 150 years. The company sells auto, homeowners, renters, flood, pet, and other types of insurance. In addition to standard auto coverages, like liability, collision, and comprehensive coverage, Travelers offers gap insurance, accident forgiveness, new car replacement, and more optional coverages. Drivers can save with numerous discounts, including for bundling policies or insuring a new car. Travelers’ IntelliDrive program rewards policyholders with up to a 30% discount for safe driving.

Pros
  • Accident forgiveness available

  • Offers discount for hybrid and electric cars

  • A++ (Superior) financial strength rating from AM Best

Cons
  • Rideshare coverage not available in all states

  • High number of negative customer reviews with the Better Business Bureau

  • Higher-than-average number of complaints with the National Association of Insurance Commissioners

Read more driver reviews of Travelers
Nancy - November 18, 2024
Verified

Checking for Better Rate

Really good.

Jim - November 12, 2024
Verified

Typical

They were fair but within a month, they raised their premium by over $50.

Kenneth - November 5, 2024
Verified

Excellent

Excellent

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State Farm Drive Safe & Save vs. Travelers IntelliDrive

Both State Farm and Travelers offer telematics program initiatives to help reward customers for safe driving.

State Farm’s Drive Safe & Save program enables you to save up to 30% on car insurance using your smartphone, which tracks your driving habits. Good drivers can earn discounts.

Similarly, Travelers IntelliDrive can also earn customers savings of up to 30%. Drivers download a mobile app to enroll, and if they drive safely, they’re rewarded. One major drawback is Travelers says premiums could go up if IntelliDrive records riskier driving habits.

State Farm vs. Travelers: Which is the cheapest?

Your car insurance rate depends on a variety of factors, such as your age, location, driving record, and even your credit history in many states. On average, State Farm offers lower rates than Travelers insurance.

State Farm: Cheapest for drivers with a clean driving record

State Farm and Travelers both offer insurance under $100, on average, for drivers with clean records, but State Farm has lower rates.

Driver Type
State Farm
Travelers
Clean driving record$54$89
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with a speeding ticket

Travelers insurance charges more than what State Farm charges to insure drivers with a speeding ticket on their record.

Driver Type
State Farm
Travelers
Drivers with a speeding ticket$63$108
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for teen drivers

It can be a challenge to find affordable car insurance for young drivers. Travelers insurance costs more than what State Farm charges to insure teen drivers.

Driver Type
State Farm
Travelers
18-year-old$94$171
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with bad credit

If you’re a driver with bad credit, State Farm offers cheaper car insurance than Travelers.

Driver Type
State Farm
Travelers
Drivers with bad credit$82$107
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for senior drivers

State Farm offers cheaper car insurance than Travelers for senior divers in their 60s.

Driver Type
State Farm
Travelers
Senior drivers$39$66
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: State Farm vs. Travelers

The most common types of car insurance are liability coverage, uninsured/underinsured motorist coverage, collision coverage, personal injury protection (PIP insurance), medical payments coverage, and comprehensive coverage.

Both State Farm and Travelers offer these main coverage types. However, you might need several add-on coverage options depending on your lifestyle. State Farm offers an array of add-on coverages, from rental car coverage to rideshare coverage. However, Travelers offers even more add-on options, and you can often choose the coverage amounts you need.

Some add-on insurance options that Travelers covers and State Farm doesn’t include loan/lease gap insurance, new car replacement cost, and accident forgiveness.

Coverage
State Farm
Travelers
Loan/lease gap insuranceNoYes
Rental coverageYesYes
Roadside assistanceYesYes
New car replacementNoYes
Accident forgivenessNoYes
Rideshare coverageYesYes
Umbrella insuranceYesYes

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Compare discounts: State Farm vs. Travelers

Both State Farm and Travelers Insurance offer numerous discounts. State Farm offers safe driver, multi-car, and multi-policy discounts. The insurer also offers good student discounts and discounts for students who are away at school.

And State Farm has a unique Steer Clear program. With this program, drivers younger than 25 can save on car insurance by completing program requirements, like watching safe driver videos and taking quizzes.

Travelers Insurance offers more discounts than State Farm. For example, Travelers offers discounts if you own a home or drive a hybrid or electric vehicle. It also offers discounts for driving a new car, and bundling your home insurance and car insurance policies can lead to more savings.

Here’s a more comprehensive look at the discounts each insurer offers.

Discount
State Farm
Travelers
Clean driving recordYes (safe driver discount)Yes (safe driver discount)
Defensive driving courseYesYes (driver training discount)
Multi-policyYesYes
Multi-carYesYes
Low mileageNoNo
Telematics (safe driving app)YesYes
Anti-theft deviceYesNo
New carNoYes
Military/affiliationNoNo
Good studentYesYes
LoyaltyNoNo
Auto payNoNo
Student away at schoolYesYes
HomeownerNoYes
Alternative fuelNoYes (hybrid/electric discount)

State Farm vs. Travelers FAQs

If you still have questions about whether State Farm or Travelers is better for you, the following answers can help.

  • Is Travelers good about paying claims?

    In J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study, Travelers scored 871 out of 1,000, slightly below the average of 878.[3] This means while many people were satisfied with how Travelers handled their claim, there’s room for improvement.

  • Who is State Farm’s biggest competitor?

    State Farm is the largest auto insurance company in the nation, with a 16.84% market share. Its biggest competitor is Progressive, which has 14.05% of the market share.

  • What is the best alternative to State Farm?

    The best alternative to State Farm depends on your personal needs, preferences, and what types of discounts you qualify for. State Farm is the largest and one of the most recognizable car insurance companies in the U.S. An alternative with a similar reputation would be another large auto insurer, like Progressive, Allstate, or GEICO.

  • What are the key differences between State Farm and Travelers insurance?

    State Farm insurance is more affordable on average than Travelers insurance, but Travelers offers more discounts and more add-on coverage options.

    Be sure to compare average rates from both insurers. The cost of car insurance policies can vary based on your age, ZIP code, marital status, and more. So, take a closer look at each insurer and decide what coverage levels you need to find the best option for you.

    Even if your car insurance quote costs more than the national average, the insurer you select might offer the specific services you need. Additionally, some national insurers offer homeowners insurance, renters insurance, life insurance, and even health insurance. So, it’s possible to get many policies in one place.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. NAIC. "PROPERTY AND CASUALTY INSURANCE INDUSTRY 2022 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM."
  2. Businesswire. "AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Its Subsidiaries."
  3. J.D. Power. "Auto Insurers Manage Customer Expectations as Repair Cycle Times Double in Two Years, J.D. Power Finds."
Catherine Collins
Catherine Collins

Catherine Collins is a freelance financial writer and author based in Detroit. She's the co-founder of MillennialHomeowner.com and MomsGotMoney.com, and author of the book Mom’s Got Money: A millennial mom’s guide to managing money like a boss. She has written for US News, Huffington Post, Money, Business Insider, Investopedia, Entrepreneur, Go Banking Rates, and many other publications. She currently resides in Detroit, Michigan with her boy-girl twins and a rescue dog named Julep.

Chris Schafer
Edited byChris SchaferSenior Editor
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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