The Travelers Companies, Inc. is a leading property casualty insurance provider in the United States, Canada, Ireland, Brazil, and the United Kingdom. The company offers both personal and commercial customers a variety of services, including auto insurance, home insurance, renters insurance, and specialized risk control. It also provides personal policies for condos, landlords, boats, and special events, as well as business policies for commercial auto and trucking companies, general liability, and workers compensation. Most of the available coverage is sold through independent agents and brokers.
The company was founded on April 1, 1864 by James G. Batterson. He and several other business men sought to provide a solution for the rising need for accident insurance in their town, Hartford, Connecticut. Batterson remained president of the company until his death in 1901. Travelers later merged with The St. Paul Companies Inc., originally established by Alexander Wilkin, on April 1, 2004. The resulting company officially changed its name to The Travelers Companies, Inc. in 2007.
Today, The Travelers Companies Inc. is the second largest commercial property casualty insurance writer and the third largest personal insurance through independent agents provider in the United States. Over the years, the company has received significant praise, including the following:
National Associations of Insurance Commissioners Largest U.S. Workers Compensation and Commercial Carrier from 2014 to 2017
Fortune’s Fortune 500 list from 1995 to 2017
Fortune’s World’s Most Admired Company list from 2006 to 2017
Barron’s Barron’s 500 list from 2008 to 2017
Our Rating
Pros
Competitive policy pricing generally below the national average
Excellent discounts and safe driving incentives
Particularly good coverage options for new car owners
Satisfaction Rating
Claims Rating
Shopping Rating
Offerings Rating
Stability Rating
Overall Customer Satisfaction
Travelers has been in business for over 160 years, making it one of the oldest insurance companies in the United States. During that time, it has become recognized as one of the very best property casualty insurers in the industry. The company attributes this success to their dedication to quality customer care and service. In fact, they go as far as to describe themselves as the “insurance company that cares.”
While this may well be the case, Travelers actually trends slightly below the industry standard for customer satisfaction. J.D. Power, a globally recognized forerunner in consumer feedback, review services, and date and analytics, assessed responses from 45,624 auto insurance customers during their 2017 U.S. Auto Insurance Study. Data was collected between February and April 2017 and included customer satisfaction ratings in the following five categories:
Interaction
Policy Offerings
Price
Billing, Process, and Policy
Claims
J.D. Power reported on a total of 11 regions, seven of which included Travelers. The company ranked lower than the industry standard in the Southwest Region, Southeast Region, New York Region, New England Region, Florida Region, and the Central Region. While Travelers missed the mark by only a small margin in most areas, the company received particularly poor customer satisfaction feedback in the Central Region, where Liberty Mutual was the only other auto insurance company to receive a lower ranking.
Travelers does, however, have an A+ rating from the Better Business Bureau. It also received the “Buyer’s Choice Award” from Business Insurance in 2013 for customer service excellence in both workers compensation and commercial auto insurance coverage.
Travelers Claims Process: Room for Improvement
The way Travelers handles auto insurance claims may be where the company struggles most. In the J.D. Power 2017 U.S. Auto Claims Satisfaction Study conducted November 2016 through August 2017, Travelers received a rating of 851 out of 1,000. This was 7 points below the industry average of 858 and a whopping 50 points below Amica Mutual, which was the highest ranking auto insurance company in the study.
J.D. Power evaluated 12,228 auto insurance customer responses. Only those who had completed the claims process within the six month period prior to the assessment were including in the study. Experts in the field examined and assessed customer satisfaction in the following six categories:
First Notice of Loss
Service Interaction
Appraisal
Repair Process
Rental Experience
Settlement
While Travelers states that their claims handling is fast, fair, and effective, many of the company’s negative reviews cite poor customer services and a slow claims process as sources of considerable dissatisfaction. The company has, however, established a process that should be fairly simple to initiate and manage. Customers can file and manage claims via the online portal, the Travelers mobile app, or on the phone with a representative.
Good Shopping Experience and Excellent Policy Discounts
In the J.D. Power 2017 U.S. Insurance Shopping Study, Travelers was awarded a total of 844 points on a 1,000-point scale. The study carefully assessed the auto insurance shopping experience, as well as customer purchasing behaviors and satisfaction. Overall customer satisfaction was measured in three separate categories:
Price
Distribution Channel
Policy Offerings
The study evaluated responses from more than 16,400 auto insurance shoppers who requested policy quotes and 50,000 customer evaluation surveys administered during April, July, and October in 2016 and January 2017. While Travelers received 35 fewer points than Erie Insurance, the company in the number-one spot, it was above the industry average of 842. It’s worth noting that Travelers did score higher than many other popular companies, including Progressive (831), Allstate (833), and GEICO (839).
Travelers makes it easy to get an auto insurance quote quickly via their online system or by speaking directly with a sales representative. The company is also committed to providing an inexpensive solution to customers, with rates below the national average. Additionally, Travelers does an exceptional job providing new customers with important auto insurance information, such as basic terms and their meanings. This is great for individuals less familiar with the industry or who are shopping for auto insurance for the first time.
Travelers also offers excellent driver discounts. In fact, customers can save an average of $533 by switching their coverage to Travelers when they take advantage of the various money-saving opportunities the company has to offer. Here’s a quick breakdown of some of the best discount options Travelers has available.
MultiCar Discount
Travelers offers up to 8% off when a household insures two or more cars on the same policy.
Home Ownership Discount
This discount applies to home and condo owners (even if they’re insured elsewhere) and may qualify them for up to 5% off their auto insurance policy.
Safe Driver Discount
Safe drivers with no accidents, violations, or major comprehensive claims over a three-year period may save as much as 10%. Safe driving over a five year period increases savings up to 23%.
Continuous Insurance Discount
When customers have no gaps between their auto insurance coverage, Travelers rewards them with up to 15% off their policy.
Hybrid/Electronic Vehicle Discount
Travelers also encourages drivers to own or lease hybrid vehicles and offers savings incentives that vary by state.
New Car Discount
Customers with cars that are less than three years old can receive a discount of up to 10%.
Early Quote Discount
A discount of 3-10% is awarded to those who request a Travelers quote before their current auto insurance policy expires.
Good Student Discount
Students who are fully enrolled in high school or college and who maintain at least a “B” average may be eligible for a discount of up to 8%.
Driver Training
Travelers encourages young drivers to take education courses in order to improve their skills. Taking an approved course can result in a discount of up to 8%.
Travelers also offers a program called IntelliDrive. Customers can download the IntelliDrive onto their phones and it will record and score their driving behaviors over a 90-day period. Factors assessed include time of day, speed, acceleration, and braking. Simply signing up can result in lower first term policy payments, but consistently displaying safe driving can result in up to a 20% discount. It’s important to note, however, that riskier driving behaviors will often result in higher premiums. Travelers only offers this services in Alabama, Connecticut, Illinois, Indiana, Maine, Montana, Nevada, Ohio, and Virginia.
Available Auto Insurance Offerings
While Travelers is best known for providing customers with quality insurance products like auto insurance, home insurance, and renters insurance, other coverage options include:
Condo
Boat & Yacht
Landlord
Umbrella
Jewelry & Valuable Items
Wedding & Events
This list makes Travelers a viable option for customers seeking coverage in multiple areas, but the company truly excels in auto insurance. Not only do they provide standard services, such as liability, collision, and personal injury coverage, but Travelers offers a wide variety of additional policy options as well. This allows customers to easily customize their policy to suit their individual needs. Here’s a quick breakdown of the company’s most popular auto insurance offerings.
Liability Coverage
The Travelers liability policy helps cover both bodily injury and property damage after an at-fault accident. This coverage applies to you, your passenger(s), passengers in other vehicles and, or pedestrians. Applicable expenses include, but are not limited to:
Medical bills
Rehabilitation
Pain and suffering
Lost wages
Legal fees
Comprehensive Coverage
This coverage helps pay for any repairs that are not collision related, such as damage that resulted from theft, vandalism, fire, inclement weather, or an animal.
Collision Coverage
Collision coverage assists to pay for damages as a result of accidents with other vehicles or objects in which the insured is not responsible.
Personal Injury Protection
Often referred to as no-fault insurance, this policy provides medical bill assistance, as well as lost wages and some other damages, regardless of who is responsible. This Travelers auto insurance option is only available in select states.
Uninsured/Underinsured Motorist Coverage
This type of coverage helps to pay for damages and medical expenses that result from accidents with other drivers who don’t have insurance or have insurance coverage that’s inadequate.
Medical Payments Coverage
Travelers medical payments coverage assists in the payment of various medical expenses for those riding inside the insured’s vehicle, regardless of fault.
Rental Coverage
Commonly referred to as extended transportation expenses, this policy can cover the expense of a rental vehicle after an accident.
Roadside Assistance
There are two roadside assistance options for Travelers auto insurance customers: Basic Roadside Assistance and Premier Roadside Assistance. The basic version covers towing up to 15 miles, jumping, fuel deliver, tire changes, and lockouts. The premier version covers towing up to 100 miles, all of the basic plan benefits, and trip interruptions coverage, which can reimburse drivers up to $200 a day if a breakdown occurs over 100 miles from home.
New Car Replacement
New car replacement coverage can cover the cost of replacing a totaled vehicle with a new one of the same make and model. The Travelers Premier New Car Replacement package also includes loan/lease gap coverage and a lower glass deductible for glass-only damages. While most companies offer similar services during the first three years of ownership, Travelers provides new car replacement coverage for the first five years.
Accident Forgiveness
Travelers offers two accident forgiveness coverage packages: Responsible Driver Plan and Premier Responsible Driver Plan. The Responsible Driver Plan forgives a single accident and a minor driving violation every 36 months. The Premier Responsible Driver Plan does the same, but also includes Decreasing Deductible, which rewards customers for driving accident and violation-free with up to $500 of credit toward the deductible. It also includes a Total Loss Deductible Waiver.
Long History of Financial Stability
One of the most important factors that customers consider when choosing an auto insurance company is financial stability. Financial stability indicates the overall health of the business; a high financial rating means the company is capable of paying potential claims, can manage more risk, and is in no danger of closing anytime soon.
The Travelers Companies Inc. meets and exceeds expectations with its considerable financial strength. In addition to being a historically reputable insurance provider, it’s the only property casualty insurance writer that’s been added to the Dow Jones Industrial Average. Travelers is also one of the only financial services companies in the Dow. Company assets total over $100 billion, with approximately $27 billion in revenue. Additionally, the company employs roughly 30,000 individuals worldwide and has about 13,500 independent agents and brokers working throughout the United States, Canada, Ireland, Brazil, and the United Kingdom.
Accordingly, A.M. Best, a leader in independent insurance news and ratings, awarded The Travelers Companies Inc. an A++ rating. This is the highest possible rating and means that the company is financially capable of handling customer claims. In addition to A.M. Best’s vote of confidence, Standard & Poor’s, an American financial service company and credit-rating agency, gave The Travelers Companies Inc. an AA rating. This strongly indicates that Travelers is a credible option for customers seeking long-term and financially reliable auto insurance.
