Does Travelers Have The Cheapest Home Insurance?
Could anyone offer you homeowners insurance cheaper than Travelers? There is only one way to find out! Use a simple online form and receive FREE quotes from top-rated national and local insurers. It will only take you 2 minutes to enter your information, but your savings could be huge.
Travelers have agents in every state. Travelers’ home insurance originates with a large insurance company that operates in every state of the union as well as the District of Columbia. In terms of market share and market value, Travelers is the largest insurance company in the country. Travelers offer many types of insurance, and homeowners’ insurance is one of its largest business segments.
Travelers Company Background
The original company that ultimately would become the Travelers we know today was founded in St. Paul, Minnesota in 1853. The “household name” came from the Travelers insurance company that was founded in Hartford, Connecticut in 1854. The early St. Paul and Hartford companies merged some years later, retaining the Traveler’s name.
As is the case with any other large company, Travelers has been through an array of mergers and acquisitions as a path to growth and expansion outside of its original states of Minnesota and Connecticut. When merger and acquisition activity in the financial services sector was so high in the 1990s, Citicorp acquired Travelers but retained its famous red umbrella logo. Big banking and big insurance proved not to be such a good match after all, and Citicorp spun off the Travelers business in 2002. Citicorp sold the Travelers business to MetLife in 2005. The St. Paul and Travelers companies merged in 2004 and finally changed its name to The Travelers Companies in 2007. It reacquired rights to the famous red umbrella that same year.
Today, Travelers is Number 106 on the Fortune 500 and is included in the Dow Jones Industrial Average (NYSE: TRV). The company had $3.2 billion net income in 2010 on revenues of $25.1 billion and holds $105.18 billion in total assets. It is based in Hartford, Connecticut, has 32,000 direct employees, and works with more than 14,000 independent representatives.
The meltdown of the financial sector of the economy in 2008 decimated several of the country’s largest financial services institutions, but Travelers is financially conservative and well managed. Not only did Travelers emerge only stronger from the crisis in the financial sector of the economy, but it also replaced its former parent Citicorp on the Dow Industrials in 2009.
Travelers Company Ratings
JD Power rates Travelers at 3 out of 5 possible levels in all measures, which include policy, pricing, billing, and customer ability to contact the company. JD Power gives Travelers a total overall rating of 3 out of 5.
AM Best, which assesses financial strength, gives Travelers an A+ rating in financial strength and an “aa” rating in issuer credit. An AM Best A+ rating is considered to be “superior.” What this means for the customer is what we already saw during the financial sector turmoil beginning in 2008: you can expect the company to be in business and able to pay if you have a claim in the future.
Travelers’ customer reviews indicate that Travelers customers give the company about a 92 percent overall satisfaction rating. Though Travelers management would like for this number to be higher, it still is higher than most other homeowners’ insurance company ratings. Travelers have a high customer retention rate of about 91 percent, meaning that more than nine out of ten customers choose to stay with the company year after year. Travelers’ customer reviews also reveal that nine out of ten Travelers customers would recommend the company to their friends and family.
A great place to see what customers really think is Travelers’ Facebook page and Twitter account.
Home Insurance Quotes Comparisons
You can benefit by taking the time to get several home insurance quotes. Using a 1900 square foot wood-frame house as the basis for comparison, Travelers was the midrange of the home insurance quotes returned. Results were:
Safeco home insurance – $1,500 annual premium
Allstate home insurance – $1,863 annual premium
Travelers home insurance – $1,658 annual premium
Travelers will provide home insurance quotes quickly. Shop around for the best rates, but also be sure to balance rates with customer satisfaction and financial strength ratings.
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