Travelers Insurance vs. Allstate – Pros and Cons

Travelers Insurance and Allstate are two of the largest insurance companies in America. Both provide auto , life, and homeowner insurance, and both are established and trusted names in the field. If you compare the two, which is a better company for you?

Travelers Insurance has been the largest insurance provider in market value for years. Because Travelers agents are independent, they form a network that reaches all over the globe. The origins of the company are based in Travelers of Hartford, which was founded in 1864, and St. Paul Fire and Marine Insurance, which was founded in 1853. The two companies became the Travelers Group in 1995. Because the organization structure is so diverse, services offered by agents may vary greatly from location to location.

Allstate is the largest publicly-held personal insurance firm in the nation, and the second-largest provider of personal insurance, such as home, auto, and life insurance. Allstate has its origins in the Sears Corporation, and has offered personal insurance since 1931.

According to the J.D. Power’s 2011 list of customer satisfaction with auto insurance companies, Allstate ranked “about average” in total customer satisfaction, as did Travelers. However, on the customer satisfaction index, Allstate scored 781 out of 1000, significantly above Travelers, which garnered 762. Overall, Allstate ranked 14th overall, while Travelers ranked 25th.

Premium comparisons vary from state to state. While in California, Travelers is almost $500 higher than Allstate on average, in Arizona it is $500 less. Part of this stems from the fact that Travelers is an independent agency, and each agent must determine prices based on the local statistics. Allstate, on the other hand, can spread costs over a much larger, national area, thereby reducing costs in some major markets.

Complaint ratios are, however, higher for Allstate than Travelers. When compared on a per capita basis, Allstate’s complaint ratio is at least twice Travelers in each state measured. This may also be due to the independent agency nature of Travelers; individual agents work more closely with their clients and are generally local, whereas Allstate agents work for a national company and may have less control over certain issues.

Generally speaking, if you live in a metropolitan area or an area where premiums are higher than the national average, you may be able to save more money with Allstate than with Travelers. On the other hand, if you live in a more suburban or rural area where rates are lower, Travelers may be cheaper.

Further, if you require a more personal interaction with your agent, and need to have him or her available on a regular basis and able to make decisions about your coverage, Travelers may be able to offer more tailored service. Allstate agents may be bound by national corporate policy, which may reduce the effectiveness they have regarding your individual needs.

Both companies are solvent and able to pay claims. Your decision should be based, ultimately, on how comfortable you feel with the agent and your interactions with the company, and on which agency will give you the best price for your auto insurance.

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