Travelers vs. USAA Car Insurance: Expert Recommended (2024)

Navigating the labyrinth of auto insurance involves a delicate balance between coverage and affordability, a task made even more challenging by the unique factors influencing premium rates. Our in-depth comparison of two industry giants, Travelers and USAA, sheds light on the intricate dynamics of credit score, driving history, and coverage preferences. As we unravel the data, a clear standout emerges, catering to a spectrum of customer profiles. Whether you boast an impeccable driving record, face credit challenges, or fall somewhere in between, our analysis pinpoints the insurance provider that consistently offers the most advantageous rates.

Travelers Car Insurance

Pros:

• Broad Accessibility: Available to the general public, offering coverage to a wide range of customers.
• Discount Variety: Provides 17 different discounts, including options for continuous coverage, on-time payments, safe driving, and device usage.
• Claim Processing: Offers convenient online and mobile app claim filing, providing flexibility for customers.
• Financial Strength: Holds a superior A++ rating from A.M. Best, indicating strong financial stability.

Cons:

• Higher Rates for Teens: Charges approximately 80% higher rates for teen drivers compared to other age groups.
• Credit Score Impact: Rates may increase from 7% to 27% if the policyholder’s credit score drops significantly.
• Limited Military Discounts: Does not offer specific military discounts or discounts for garaging vehicles during deployment.

Read more: What discounts are available for Travelers car insurance customers?

USAA Car Insurance

Pros:

• Exclusive Eligibility: Available to active and retired military and their family members, often offering more affordable rates.
• Lower Rates: Generally provides rates about 25% to 30% cheaper than other car insurance companies.
• Claim Discounts: Offers substantial discounts for accident-free periods and a 90% discount for garaging vehicles during military deployment.
• Financial Strength: Holds a superior A++ rating from A.M. Best, indicating strong financial stability.

Cons:

• Limited Eligibility: Restricted to military personnel and their families, limiting accessibility.
• Limited Discounts: Offers fewer discounts (13) compared to Travelers.
• Credit Score Impact: Rates may more than double if the policyholder’s credit score drops significantly.

USAA Emerges as the Top Choice

When weighing the options between Travelers and USAA insurance companies, it becomes evident that both companies have their strengths and weaknesses. However, considering various factors, USAA emerges as the superior choice, offering a comprehensive package that caters specifically to active and retired military personnel and their families. (For more information, read our “Car Insurance Guide for Military Members“).

Rates and Eligibility: While Travelers provides competitive discounts and a broad customer base, USAA stands out with rates consistently 25 to 30% cheaper than most other car insurance companies. The catch is that USAA is exclusively available to the military community. This exclusivity, though limiting, allows USAA to tailor its offerings and maintain affordability.

Age, Driving Record, and Credit Score: USAA maintains a clear advantage when it comes to rates based on age, driving record, and credit score. For example, USAA’s rates for teen drivers are only 35% higher than those for other age groups, while Travelers see an 80% increase. Additionally, USAA’s rates remain consistently cheaper even when considering factors like accidents or a drop in credit score.

Discounts: Although Travelers boasts 17 discounts compared to USAA’s 13, the depth and exclusivity of USAA’s discounts, such as the 90% discount for active military members during deployment, make them particularly appealing. While Travelers may offer more discounts, USAA’s discounts are substantial and tailored to its unique customer base.

Digital Features and Claims Process: Both companies offer convenient mobile apps and efficient claims processing, making them equal in terms of digital convenience. However, USAA’s focus on innovation and technology, especially considering its military clientele, adds an extra layer of value to its services.

Financial Strength and Customer Satisfaction: Both companies have top-notch financial ratings, with USAA and Travelers receiving the highest scores from A.M. Best. However, Travelers has a smaller customer complaint ratio, indicating a higher level of customer satisfaction.

While Travelers is a solid choice for a diverse customer base, USAA’s tailored approach, consistently lower rates, exclusive discounts, and positive customer feedback make it the top pick. If you qualify for USAA membership, it’s a clear winner in terms of value, service, and overall customer satisfaction.

Is Traveler’s car insurance or USAA Car Insurance Cheaper Based on age?

The more we drive in various situations and the longer we drive, the safer and more aware we become when behind the wheel.

For this reason, car insurance companies use age as one of the most influential factors in quoting your Travelers vs. USAA car insurance rates.

In most states, it’s legal to base car insurance rates on marital status and gender; however, some have banned it. Let’s compare Travelers and USAA insurance rates based on age, gender, and marital status.

Travelers vs. USAA Average Annual Car Insurance Rates based on Age, Gender, and Marital Status

Generally, expect USAA rates to be about 25 to 30% cheaper than most other car insurance companies.

Car insurance for teen drivers will always be high. Why? Because they have limited time behind the wheel, and their brains are not developed enough to make the best decisions.

With that said, Traveler’s rates for teens is about 80% higher than their rates for the other age groups. USAA’s rates for teen drivers are only 35% higher than the rates for drivers in different age groups.

Is Traveler’s car insurance or USAA Car Insurance Cheaper Based on Driving Record?

Speeding tickets, accidents, or DUIs on your driving record will raise your car insurance rates no matter what company you pick because you become a higher-risk driver.

Travelers vs. USAA Average Annual Car Insurance Rates based on Driving Record

When it comes to rates by driving record, USAA’s rates are about half of  Travelers’ rates.

However, USAA takes accidents and DUIs much more seriously. Rates with USAA will increase 30 to 81% if you are in an accident or get a DUI while carrying a policy.

Rates for Travelers will increase 24 to 67% if you are in an accident or get a DUI while carrying a policy.

Is Travelers Car Insurance or USAA Car Insurance Cheaper Based on Credit Score?

If you experience some type of financial trauma such as medical debt or going through a divorce, a good credit score can drop in a matter of months.

In most states, it’s legal for car insurance companies to factor in your credit score when determining your rates; however, some are banning this and factoring in gender and marital status.

Based on the assumption that those with higher credit scores are more responsible and, overall, safer drivers are less likely to file a claim, car insurance companies justify using your credit score to determine your rates.

Let’s examine how Travelers and USAA address rates for drivers with varying credit scores.

Travelers vs. USAA Average Annual Car Insurance Rates based on Credit History

Again, USAA will always have cheaper rates than other car insurance companies.

Rates for Travelers will increase from 7% to 27% if your credit score drops significantly while carrying a policy.

Rates with USAA will more than double if your credit score drops significantly while carrying a policy.

It may be that basing car insurance rates on gender, marital status, or credit score has been outlawed in your state.

If you want a concentrated view of both companies, check out our Travelers insurance reviews and our USAA insurance reviews for more details.

Do Travelers or USAA Have Better Car Insurance Discounts?

A car insurance company often determines discounts based on its philosophy and values. Therefore, if you have a bad driving record or a low credit score, getting good deals will offset your high rates.

Travelers have more discounts than USAA, and some of them are interesting. Travelers has 17 deals, and USAA has 13 values.

Travelers vs. USAA Car Insurance Discounts

Travelers offer discounts of 15% to 23% for having continuous coverage, making on-time payments, being claim-free, being a safe driver, or using their driving device or app.

To note, Travelers offers a 30% discount for using their driving app or driving device, while USAA provides only a 5% discount.

USAA may offer fewer discounts, but the ones they offer are pretty good. You can save 10% to 12% by being a family legacy, signing early, driving a newer vehicle, being claim-free, and being a safe driver.

And, if you are an active military member and get deployed, you will get a 90% discount for garaging your vehicle while you are away.

Our records show no Travelers insurance military discount or garaging discount. However, it still pays to get a quote because car insurance companies offer new discounts daily to compete with other companies.

Do Travelers or USAA Have Better Car Insurance Mobile Apps?

Usage-based car insurance has become a hot trend in the car insurance industry in the last decade. All the larger car insurance companies have a driving app that uses your mobile phone or a device installed into your vehicle.

Large car insurance companies also provide a more general app to enable you to pay your bill, make changes to your coverage levels, and use it for electronic verification of insurance in states that permit it.

Streamlining Experience With Travelers vs. USAA Car Insurance Claims Process

Ease of Filing a Claim (Online, Over the Phone, Mobile Apps)

Travelers and USAA both offer convenient ways to file insurance claims. You can file a claim with both companies online through their respective websites or mobile apps.

Additionally, they provide phone support for customers who prefer to file claims over the phone. These multiple channels make it easy for policyholders to report accidents and incidents, ensuring a hassle-free claims process.

Average Claim Processing Time

The average claim processing time can vary depending on the complexity of the claim and the specific circumstances. Travelers and USAA are known for their efficient claims processing.

However, the exact processing time may differ for each claim. To get an accurate estimate of claim processing time, it’s advisable to contact the respective company or refer to their customer support for more information.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback is crucial when evaluating an insurance company’s claim resolutions and payouts. Both Travelers and USAA have received positive reviews for their fair and prompt claim settlements.

To gain insights into customer experiences, you can explore online reviews, forums, and testimonials to understand how satisfied policyholders are with their claim resolutions and payouts.

Read more: How does USAA handle claims involving hit-and-run accidents?

Unleashing Innovation With Travelers vs. USAA Car Insurance Digital and Technological Features

Mobile App Features and Functionality

Both Travelers and USAA offer mobile apps with a range of features and functionality to enhance the customer experience. These apps typically allow users to manage their policies, view documents, file claims, make payments, and access roadside assistance services.

Travelers and USAA strive to provide user-friendly and intuitive mobile app experiences to meet their customers’ needs.

Online Account Management Capabilities

Managing your insurance policies and accounts online is made easy by Travelers and USAA. Through their online account management portals, policyholders can access policy details, update personal information, add or remove coverage, and view billing and payment history. These capabilities provide policyholders with the flexibility to control their insurance accounts conveniently.

Digital Tools and Resources

Both Travelers and USAA offer a variety of digital tools and resources to help customers make informed decisions about their insurance coverage. These resources may include insurance calculators, educational articles, safety tips, and FAQs.

By providing these digital tools and resources, both companies aim to empower their customers with valuable information to navigate their insurance needs effectively.

How do Travelers and USAA Car Insurance Compare in Financial Strength and Customer Satisfaction?

Purchasing car insurance is a significant financial responsibility, so you want to make sure you’re selecting the appropriate company that will be there for you when you need it most.

A company’s financial strength, customer satisfaction with the claims process, and customer complaints should be reviewed before making decisions.

The following three agencies provide insight into these factors:

A.M. Best scores companies based on their ability to meet their ongoing insurance obligations, such as balancing premiums collected and claims paid. The highest score A.M. Best award is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 and 96.

And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers against the total number of complaints.

In 2017, the national average complaint ratio was 1. The lower the ratio, the better.

Travelers vs. USAA Company Ratings

USAA’s ranking and Travelers’ ranking from A.M. Best are the highest possible rankings.

However, Travelers has a smaller customer complaint ratio. Before eliminating USAA, be sure to find more details on the NAIC website.

The Bottom Line

The average cost of car insurance for USAA is several hundred of dollars cheaper than many other major insurers. USAA is almost always the cheapest insurance company in every state, but its eligibility requirements make it restrictive.

The right car insurance coverage could save you thousands after an accident.

Before you buy Travelers vs. USAA car insurance, enter your ZIP code to start comparing multiple car insurance companies in your local area.