Are you shopping around for insurance? If so, then it won’t take long for you to find out that there is a large list of affordable insurance providers out there. One of the most affordable is Travelers. You might be wondering, why is travelers insurance so cheap?
This question doesn’t have a clear answer. Each insurance provider has a different rating system resulting in different rates. I will help you with making the best insurance choice.
The amount that you can save with Travelers Insurance depends.
In my opinion, Travelers does not offer the cheapest insurance prices, but they do offer affordable insurance prices. I know some people who received rates from Travelers that beat out every other insurance carrier and some people received decent insurance rates. It all depends on who you are and the city and state that you live in. In one area, Progressive might be cheaper for you and your family. In another area, GEICO might be cheaper for you and your family. In other areas, Erie might be cheaper. This is why it is important to compare insurance rates.
Travelers offers multiple ways for policyholders to save on auto insurance.
If you are looking for an insurance provider that offers tons of discounts that you may be eligible for, then Travelers Insurance is a great option. Travelers is rich in car insurance discounts. Depending on what type of insurance that you need you will be able to save 10% on auto insurance, 15% on home insurance, and 5% on renters insurance when you bundle your policies. If you have multiple vehicles you can save up to 8% on your auto insurance policy.
Being a homeowner whether that means owing a home or a condo will result in a 5% discount with Travelers. Safe drivers with no auto accidents or no comprehensive claims in the past 3 years could save 10% to 23% on auto insurance. Safe drivers can save even more on their policy with the Travelers IntelliDrive program. This insurance program will last for 90 days. With the usage of a smartphone app this program will score how safely that you drive. Safe driving habits will result in up to a 20% insurance discount. IntelliDrive does have drawbacks. In the same way that safe driving can help to reduce rates, high risk driving can increase your insurance rates. The app will score you on several factors such as when you drive, how you brake, how fast that you drive, and how you accelerate. States where IntelliDrive is available include Alabama, Connecticut, Illinois, Indiana, Maine, Minnesota, Nevada, Ohio, and Virginia.
With Travelers, the discounts just keep on piling up. You will be able to save 10% if you have a vehicle that is less than 3 years old. Good students can save up to 8%. If you have had continuous insurance with no gaps, then you can easily save up to 15%.
Travelers might give you the best prices because you qualify for so many of their insurance discounts. Not only are there many auto insurance discounts but Travelers offers many homeowner discounts as well. If you purchased your home within 12 months of your policy effective date, then you will be able to save with Travelers. If you haven’t experienced a loss in a significant amount of time, then you will be able to save with their Loss-Free discount. If you have a certified “green home” you will be able to save up to 5%.
Auto insurance coverage types matter
You always have to make sure that you are looking at the right coverage. Certain coverages cost mote than others and some companies offer cheaper coverages than others.
Travelers offers 6 insurance coverages including Liability Coverage. With liability, you have coverage for bodily injury and property damage liability. Comprehensive helps to cover non-collision damages caused to your vehicle. Collision helps to pay damages caused to your vehicle if you hit another car or if another car hits you. Personal Injury Protection (PIP) pays for medical expenses. Uninsured/Underinsured Motorist Coverage helps to pay for damages caused by someone who doesn’t have adequate insurance coverage. Medical payments coverage will help to pay for covered medical expenses for injured passengers of your vehicle.
Additional coverage options that Travelers offers are Loan/Lease Gap Insurance, Rental Coverage, Roadside Assistance, New Car Replacement, Accident Forgiveness, and Ride Sharing.
Does cheap insurance mean a bad claims process?
No, not all the time. This is the fear that many people have. If I purchase insurance from a company that offers me a rate that is too good to be true, then there must be a catch. This is not quite true. There are expensive insurance carriers that do not handle claims well vice versa.
Travelers Insurance received 3 out of 5 Power in Overall Satisfaction in the J.D. Power Claims Auto Insurance Claims Study. In fact, they received 3 out of 5 Power Circles in every category except the Repair Process category. In the Repair Process category Travelers received 2 out of 5 Power Circles.
In the J.D. Power Insurance Study Travelers also received “about average” ratings with 3 out of 5 Power Circles in Overall Satisfaction.
A.M. Best gave Travelers an “A++” financial strength rating. Fitch gave Travelers an “AA” financial strength rating. Moody’s gave Travelers an “Aa2” financial strength rating. Standard & Poor’s gave Travelers an “AA” financial strength rating.
Travelers does exceptional well in financial strength. Although having a positive financial strength rating does not mean that they will pay out every claim, it does show that customers are backed by billions in assets and they insure with a company that is built to pay out claims.
Is Travelers Insurance worth it?
Travelers has been in the insurance industry for more for than 160 years. They are one of the oldest insurance providers in the U.S. They made it this far for a reason. If you want a company that does better than most in financial strength, offers tons of discounts, has an easy to use website, and excellent customer service, then Travelers is a good choice.
Bottom line
Travelers might be good for you because they offer so many insurance perks. However, I encourage you to take the time to compare rates today. Travelers might not be the cheapest in your area, which is why comparing rates is crucial and will lead to savings.