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
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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 May 23, 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.

FactorState FarmTravelers
IQ Score4.64.5
J.D. Power customer satisfaction score833 out of 1,000806 out of 1,000
Average quote: liability only$53$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 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. Criteria are weighted 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 5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: We use 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 20,000 customer reviews across 155 car insurance companies. We also considered 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 United States, 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 identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.

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.

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.6
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
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.
$53/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.
$115/mo

State Farm has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in all 50 states, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

Read our State Farm review
Shirley - May 22, 2024
Verified

Excellent

I need a discount because I'm a good driver.

Dana - May 22, 2024
Verified

Not Good

I don't drive much, but they keep raising my rate.

George - May 21, 2024
Verified

Still Looking...

Find a company that's cheaper with better benefits.

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
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.5
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
829
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.
$195/mo

Travelers has been in business for more than 165 years. Today, the company sells auto insurance, homeowners, renters, flood, pet, and other types of insurance. In addition to liability and full-coverage car insurance, Travelers offers gap insurance, rental car reimbursement, roadside assistance, rideshare insurance, new car replacement coverage, and more. Policyholders can save with a number of discounts, including for bundling multiple policies, safe driving, paying in full, student discounts, and more. Travelers has fewer complaints than expected with the National Association of Insurance Commissioner’s Consumer Complaints Index. A.M. Best gives the company an A++ for financial strength.

Pros
  • Accident forgiveness available

  • Robust coverage selections and discount offerings

Cons
  • Rideshare coverage only available in Colorado and Illinois

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

Read our Travelers review
Dylan - May 22, 2024
Verified

Billing Issues

I signed up to have my bill mailed to me, but I almost never received it. This caused me to be late on payments regularly.

Barbara - May 22, 2024
Verified

My insurance increased from $459 to $788, and then to $888 this year for a 6-month period. What bothered me most was the lack of communication from Travelers. I understand that all insurance companies are for profit, but they should be respectful to their customers. I'm starting to think that all insurance is a scam.

My insurance increased from $459 to $788, and then to $888 this year for a 6-month period. What bothered me most was the lack of communication from Travelers. I understand that all insurance companies are for profit, but they should be respectful to their customers. I'm starting to think that all insurance is a scam.

Kathleen - May 20, 2024
Verified

Good

If you have an old house with prior issues, do not contact them for another issue.

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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 TypeState FarmTravelers
Clean driving record$53$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 TypeState FarmTravelers
Drivers with a speeding ticket$61$105
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 TypeState FarmTravelers
18-year-old$84$160
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 TypeState FarmTravelers
Drivers with bad credit$79$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 TypeState FarmTravelers
Senior drivers$38$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.

CoverageState FarmTravelers
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.

DiscountState FarmTravelers
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 HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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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