Farmers vs.Travelers: Which should you choose for home insurance in 2024?

Farmers and Travelers ranked No. 8 and 9 in the Insure.com 2024 Best Home Insurance Companies list. Here, we’ve summarized all the pros and cons so you can compare them side by side and find the best fit for your home insurance needs.

Farmers comes highly recommended by its customers, with 82% saying they’d recommend it to others. They have an excellent AM Best score of A which indicates financial stability. 

Travelers scored even better in terms of customers’ willingness to recommend it to others—87% in this category. Travelers has a superior AM Best score of A++, which is the highest score possible.

Both companies have low complaint ratios and are conveniently available in every state. However, both companies’ home insurance rates are higher than average.

Insure.com compares: Farmers vs. Travelers: Which is better for you?

We’ve compiled data on Farmers and Travelers to help you compare these two companies side by side. Based on a survey of Insure.com’s customers as well as third-party rating systems such as AM Best and the National Association of Insurance Commissioners (NAIC), you can see how Farmers and Travelers stack up and decide which would be better for you.

Of the two, Farmers has lower rates on average. The companies are fairly equal in terms of customer satisfaction and complaints, so the choice may come down to which offers you a better rate. It’s worth noting that Travelers rates more highly with AM Best, an indication of a strong financial standing; if that’s important to you, Travelers might be your best bet.

Insure.com comparison of Farmers vs. Travelers

The table below summarizes Farmers and Travelers so you can compare them at a glance. Take note that the Insure.com overall rating and customer satisfaction rating points are awarded on a scale of 1 – 5. 

Farmers and Travelers both have strong AM Best scores, indicating financial solvency and the ability to meet financial obligations such as paying out claims. They both have low complaint scores with the NAIC; numbers below one indicate a low level of complaints.

Both companies have higher-than-average national rates, with Farmers charging $3,194 annually for a home insurance policy. Travelers charges $3,701 annually, which is quite a bit more.

*In Florida, coverage may be offered by a subsidiary

Farmers vs. Travelers: Home insurance overview

The table below shows how each carrier scored in all major categories. The two companies are very similar, but Farmers scored slightly higher overall except for customer satisfaction, where Travelers garnered two more percentage points. Percentage scores indicate how many of that company’s customers indicated they were satisfied.

Farmers vs. Travelers: Pros and cons

The chart below shows the pros and cons for Farmers and Travelers, according to the customers surveyed.

Farmers vs. Travelers: Which has the cheapest home insurance rates?

The table below shows the rates for different coverage levels for Farmers and Travelers. Farmers is significantly less expensive at all coverage levels.

Farmers vs. Travelers: Rates by coverage level

Farmers vs. Travelers: Rates by credit history

Insure.com compiled rates for different credit scores in the table below. In most states, insurance companies can use credit history as a factor when calculating rates.

Travelers is cheaper only for people with excellent credit. Then, its rates jump significantly higher than Farmers’ for all other credit score categories.

Farmers vs. Travelers: Customer satisfaction

According to the Insure.com Best Insurance Companies survey, 73% of Travelers customers report being satisfied. They outscored Farmers by a couple of percentage points in this category.

Farmers vs. Travelers: Discounts

The table below shows that Farmers offers more overall discounts available to customers. It’s important to look at which discounts will apply to your situation when deciding which company is a better pick for you. 

Which has a bigger auto and home discount?

Auto and home bundling discounts, also called multi-policy discounts, save you money on both auto and home insurance. You’ll see from the table below that Farmers offers an average 18% discount for auto and home bundling and Travelers offers an 11% discount.

Farmers vs. Travelers: Claims processing

Farmers scored higher in this category, with 70% of customers surveyed saying they were satisfied with how their claims were handled.

The bottom line: Farmers vs. Travelers

Farmers and Travelers are two solid, financially stable companies that are conveniently available in every state. A high percentage of their customers are likely to recommend them to others. They both have a low complaint ratio with the NAIC. However, their rates are higher than the national average.

Since rates vary widely by location, either one of these companies could be cheaper for you. It’s always a good idea to compare carriers and quotes to find the best insurance company for your family’s needs.

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 insurance consumers (1,151 people with home insurance). The survey was conducted by online market research company Slice MR.

Respondents were asked to name their home insurer and then grade it in the following categories: customer satisfaction, ease of service, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Respondents were then asked to pick their insurer’s top three attributes out of more than a dozen presented – including digital experience, discounts best for auto/home bundling and best for discounts. The number of responses for each attribute were totaled before dividing by the number of each company’s customers who responded to that survey question to create a percentage.

Respondents were then asked if they would recommend their home insurer to someone else and if they planned to renew their policies. The percentage who said yes is presented in the results.

Finally, respondents were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.

They then collected AM Best data, which measure financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in the calculations. If more than one underwriting company was identified for a line, the editors used a weighted average of the NAIC complaint index scores.

They also collected insurance rate data from Quadrant Information Services.

With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For home insurers, we took the following and gave each a weight.

Survey: 40% of the total score (10% customer satisfaction, 10% recommended, 10% renewal rate and 10% claims handling)

• AM Best: 25% of total score
• Annual premium: 20% of total score
• NAIC: 15% of total score

Each insurer was awarded between half a star and 5 stars. No company in the ranking received less than half a star in any category, and 5 stars was the most any insurer could receive.

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