Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Benjamin Carr was a licensed insurance agent in Georgia and has experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. Benji is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Jan 26, 2021

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To Sum It Up

  • Travelers is more expensive than USAA, but you don’t need to be in the military to have an auto insurance policy
  • USAA has some of the most affordable prices in insurance, but it’s only offered to current and former military members
  • Travelers doesn’t have a military discount
  • If you’re interested in finding good deals on auto insurance for veterans, you may be drawn toward USAA. As a company built in 1922 by U.S. military officers for their comrades, it caters to military families. However, Travelers has also been around for more than 100 years.

    Follow this guide to look at Travelers vs. USAA and determine which company is the best auto insurance for military and veterans. Learn about third-party company ratings and compare Travelers vs. USAA auto insurance rates. Both companies are highly rated. You may need to base your decision on the available discounts, and we’ll discuss that here.

    If you’re ready to start comparing auto insurance providers in your area, begin by using our free tool. Enter your ZIP code now to see what auto insurance policy is right for you and read on to learn how Travelers and USAA compare. 

    Travelers vs. USAA: Comparing Rates

    USAA has lower rates when compared with Travelers and most other companies. Based on auto insurance rates, USAA is the most affordable for military and veterans. However, there may be someone you want to add to your policy that doesn’t qualify under USAA, or maybe you’re not in the military yet. If that’s the case, keep comparing these two companies. 

    Take a look at the average annual rates for Travelers and USAA.

    CompanyUSAAState FarmGeicoNationwideAmerican FamilyTravelersProgressiveFarmersAllstateLiberty Mutual
    Average Annual Premium$2,468.62$2,729.49$3,080.53$3,199.58$3,618.33$3,809.80$3,911.60$3,954.16$4,528.59$5,053.59
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    Travelers vs. USAA: Comparing Company Ratings

    Travelers is rated among the top three auto insurance companies. USAA has comparably strong ratings across the board. USAA is best known for its customer service, coverage benefits, high financial strength, and J.D. Power scores. Travelers owns 1.8 percent of the market share.

    Both companies have comparable ratings from third-party companies. 

    • A.M. Best – Travelers was given an “A++” and USAA car insurance has an “A++” rating
    • From Moody’s, Travelers was given an “A2a” and USAA was given an “Aaa”
    • And S&P’s gave Travelers an “AA” and USAA an “AA+”

    While J.D. Power gave USAA five out of five stars for power rankings, it gave Travelers four out of five stars. 

    Learn more in the next section about military discounts and other discounts these companies offer. 

    Travelers vs. USAA: Comparing Military Discounts

    USAA members generally see about a $700 reduction annually when they switch to USAA from other auto insurance companies, since its rates are already discounted. The company does offer other discounts on auto insurance policies:

    USAA offers discounts for driving: 

    • Safe Driver 
    • Defensive Driving 
    • Driver Training 
    • Good Student 

    USAA offers discounts for your vehicle: 

    • New Vehicle 
    • Multi-Vehicle 
    • Annual Mileage
    • Vehicle Storage

    USAA offers discounts for your membership: 

    • Family Discount 
    • Length of Membership
    • Military Installation

    Travelers doesn’t offer a specific military discount, but it does provide a long list of discounts. These are most, but not all, of the discounts available to members of Travelers insurance. Though these are not specific to the military and veterans, you can still benefit from these discounts. 

    • Multi-Policy Discount: You could save up to 13 percent on your auto insurance when you also purchase your home/condo insurance with other insurance policies from Travelers.
    • MultiCar Discount: Some multi-car families are eligible for a discount of up to 8 percent.
    • Home Ownership Discount: This is a discount of up to five percent on your car insurance if you own a home or condo.
    • Safe Driver Discount: No accidents, violations, or major comprehensive claims could save you between 10 and 23 percent. 
    • Continuous Insurance Discount: Customers with no gaps in their coverage are eligible for a discount of up to 15 percentage.
    • Hybrid/Electric Vehicle Discount: If you own or lease a hybrid car, you could save on your Travelers auto insurance. That means an environmentally-friendly car is good for your wallet, too.
    • New Car Discount: When you purchase or own a less than a three-year-old car, you may qualify for a discount of up to 10 percent just for owning a newer model vehicle.
    • EFT, Paid in Full and Good Payer Discounts: You can save seven percent if you pay your policy in full, two to three percent by paying through electronic funds transfer (EFT) or payroll deduction, and as much as 15 percent by consistently paying on time.
    • Early Quote Discount: You may be eligible for up to a 10 percent discount if you get an early quote. 
    • Good Student Discount: Policyholders with drivers who are fully enrolled in high school or college can maintain a “B” average or better qualify for an 8 percent discount on auto insurance.
    • Student Away at School Discount: Save seven percent on auto insurance when you or your children go away to school. 
    • Driver Training Discount: To encourage young drivers to sharpen their driver training skills, Travelers offers a discount of up to eight percent for those drivers who have completed an approved driver education course.

    Learn more about who offers a discount to veterans for auto insurance

    So, you’ve gathered all the facts, now what?

    How should you choose between Travelers and USAA?

    Both Travelers and USAA have pros and cons. If the military connection is important for you and your family when purchasing auto insurance, then USAA may be the choice for you. USAA has been proudly serving our military and veterans since 1922, while Travelers has been providing insurance for more than 150 years. Both companies have a great reputation for customer service and financial strength, as we’ve learned.

    Travelers stands its ground against USAA in discounts offered to bring down your costs. It offers very similar programs and benefits, which can be hard when you’re choosing a provider. You have all the information you need. Now you need to get an auto insurance quote. 

    Remember, auto insurance providers will collect demographic information to give you an insurance rate. These factors will include: 

    • Age 
    • Driving history 
    • Car make and model year 
    • Location 
    • How often you drive 
    • What you use the car for 
    • Who is in the car with you, and more 

    Ready to start comparing insurance rates now that you’ve compared Travelers and USAA? Enter your ZIP code now to get started.

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    Frequently Asked Questions: Travelers vs. USAA

    If you still have more questions about USAA or Travelers, see if you can find the answer below. 

    #1 – Is USAA car insurance for the military only?

    Yes. If you want to purchase car insurance from USAA, you, your spouse, your parent, or your parent’s spouse must be in the military. However, USAA is not limited to car insurance. It has a myriad of options, including homeowners and life insurance.

    #2 – Does Travelers Insurance have a military discount?

    No. Travelers Insurance does not offer a military discount. 

    #3 – Is USAA auto insurance really cheaper?

    USAA, time and time again, has the most affordable rates compared to any auto insurance company. However, it’s not available to everyone and is kind of in a league of its own, so companies, such as J.D. Power, have to rank it on a different level.