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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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.
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 Score
9.3
9.0
J.D. Power customer satisfaction score
833 out of 1,000
806 out of 1,000
Average quote: liability only
$54
$89
Number of discounts advertised
10
12
Number of states where it operates
50
43
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.
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
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.
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
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.