American Family vs. Travelers: Best Auto Insurance for 2021
When you compare insurers like American Family vs. Travelers, you should analyze pricing, discounts, and company ratings. American Family is about $900 cheaper than Travelers annually. Travelers, however, not only offers better discounts than American Family but is more well-reviewed by A.M. Best and the Better Business Bureau.
- American Family is about $900 cheaper than Travelers annually.
- Travelers offers more discounts than American Family.
- Travelers is more well-reviewed by both A.M. Best and the Better Business Bureau.
Since you are with us today, you are most likely looking for your next insurer. Insurer comparison can be a bit of a complicated process, so we're going to focus on just American Family vs. Travelers.
If you'd like to learn about American Family Insurance and its rates, discounts, and American Family Care coverage, be sure to read our American Family review.
So, American Family vs. Travelers: Which company is best in 2021? Let's find out together. First, type your ZIP code into our free and helpful tool above to get affordable auto insurance quotes in your area.
American Family vs. Travelers: Which is cheaper?
When you begin insurance comparison, you most likely want to start off with what is most important to you: pricing. Let's take a look at a table that shows the average annual auto premiums not just for American Family and Travelers but for all of the main insurers.
|Company||Average Annual Rates|
As you can see, of the 10 companies shown, Travelers is cheaper than only two companies: Allstate and Liberty Mutual. How did American Family do? American Family is cheaper than five of its competitors: Progressive, Farmers, Travelers, Allstate, and Liberty Mutual.
In fact, American Family is about $900 cheaper than Travelers annually. With this information, we can say that American Family wins in terms of pricing. Let's now move on to discounts offered by these companies.
American Family vs. Travelers: Which offers better discounts?
You really can't find a better way to strip away your premiums than discounts. Here's the thing, these main insurers offer a ton of them. What's even better is a lot of them are as simple as typing in your Travelers Insurance login on the app.
|Discounts||American Family Discount Amount||Travelers Discount Amount|
|Adaptive Cruise Control and/or Headlights||-||-|
|Claim Free||-||23%; must be accident and violation free to get the "Safe Driver" discount listed below;
must be accident and violation free to qualify:
23% - 5 years
10% - 3 years;
one safe driver/claim free discount applies.
|Daytime Running Lights||-||-|
|Electronic Stability Control||-||-|
|Forward Collision Warning||-||-|
|Lane Departure Warning||-||-|
|New Customer/New Plan||-||-|
|On Time Payments||-||15%|
|Seat Belt Use||-||-|
|Students and Alumni||-||-|
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As you can see, of the 63 listed discounts, American Family offers three versus Travelers' 17 discounts. These discounts range from paying your bills on time and completing driver's ed to their safe driver program.
In short, Travelers Insurance wins in terms of discounts. If you'd like to learn more about rates, discounts, etc., be sure to read our Travelers insurance review. Let's now wrap up with how these insurers are rated by A.M. Best and the Better Business Bureau (BBB).
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American Family vs. Travelers: Which is more highly rated?
One last thing to keep your eye on is how the insurers you are comparing are rated by organizations such as A.M. Best and the Better Business Bureau. These ratings can help reassure a consumer that a life insurance company is and will be financially strong.
A.M. Best's rating scale goes from the high end at A++ all the way down to a rating of D. At this point in time, American Family has a rating of A from A.M. Best. Travelers, however, was given the highest rating of A++ by A.M. Best.
A.M. Best also has what is called Long-Term Issuer Credit Ratings (Long-Term ICR). Whereas their Financial Strength Ratings are about an insurer’s financial strength as well as its ability to meet ongoing policy and contractual obligations, a Long-Term ICR is focused on the future. A Long-Term ICR can be issued on a long-term basis or short-term basis.
This scale goes from the high end of “aaa” (Exceptional) down to the low end of “c”. It’s a little confusing, so the scale goes like this: “aaa”, “aa”, “a”, “bbb”, “bb”, “b”, “ccc”, “cc”, “c”. A company can also score notches in their ratings, i.e. “aa+”.
American Family score an A.M. Best Long-Term Issuer Credit Rating of “a+”. How did Travelers do in terms of A.M. Best’s Long-Term ICR? It turns out that Travelers received an even better Long-Term ICR than American Family, an “aa+”.
The Better Business Bureau's rating scale goes up to A+. American Family has the next rating down, an A, and is currently not BBB accredited. Travelers is also not BBB accredited, but they hold the highest rating of A+
In short, in terms of company ratings, Travelers definitely wins.
Don't let your comparison shopping stop with comparing American Family vs. Travelers. In the meanwhile, type your ZIP code into our free and helpful tool below to find affordable auto insurance quotes in your area today!