Our take

Travelers, a commercial insurance market leader, is financially strong and offers businesses various coverage options and multiple discounts. The National Association of Insurance Commissioners, which tracks insurance-customer complaints, finds a low level of dissatisfaction with the company. However, the company only offers commercial car insurance in 21 states and you need to talk to an agent to get a quote. 

Pros:
  • Is the second largest commercial auto in terms of market share.
  • Has the strongest possible rating from AM Best.
  • Offers plenty of ways to save, including good payer and paid-in-full discounts
Cons:
  • You must speak with an agent to get a quote.
  • The company only offers commercial auto insurance in 21 states.

Understanding commercial auto insurance

Commercial auto insurance is necessary for company-owned cars, trucks and vans and when you use a vehicle for business purposes. Personal auto insurance will not cover claims that happen when a driver is on the job.

A commercial auto insurance policy starts with coverage for liability claims. This includes property damage -- another vehicle or private property you may have hit – and injuries to third parties. This component of commercial auto insurance is required by law in most states, with each state having minimum liability limits.

On top of liability coverage, you can also opt for comprehensive and collision coverage. Comprehensive coverage pays for damage to your vehicle that occurs from non-collision events such as theft or natural disasters. Collision coverage will pay to repair your vehicle after an at-fault accident.

Travelers commercial auto insurance coverage

Travelers, which has been around for more than 150 years, is the second-largest commercial car insurance company with more than 5% of the market, according to the National Association of Insurance Commissioners, the standard-setting and regulatory support organization overseen by the country’s top insurance regulators.

AM Best, a credit rating agency that measures financial strength, gives Travelers an A++, its highest rating, indicating the company is in a great position to meet its financial obligations.

Travelers has a full line of commercial auto insurance coverage that includes:

  • Liability coverage: Pays up to $1 million in liability coverage should you damage another vehicle or injure passengers or pedestrians in an at-fault accident.
  • Collision coverage: Pays to repair your vehicle in the event that you hit another vehicle or object.
  • Comprehensive coverage: Pays for repairs needed when a vehicle is damaged in non-collision incidents such as theft, vandalism, fire or weather events.
  • Medical payments: Pays for medical bills incurred by your driver or passengers when you are in an at-fault accident.
  • Uninsured/underinsured motorist: Pays for damages when another party hits you but doesn’t have any or enough liability coverage.
  • Rental car coverage: Provides an allowance so that you can rent another vehicle while yours is in a repair facility.
  • Roadside assistance: Provides 24/7 emergency services such as a tow, battery jump or tire change.
  • Auto lease gap coverage: Should there be a total loss, this pays the difference between the loan amount and the cash value of the vehicle.
  • Employee hired auto coverage: Provides coverage to employees who rent vehicles in their own name while on company business.
  • Blanket additional insured coverage: Eliminates the need to name each contracted driver or company as an additional insured.

Types of commercial vehicles Travelers insures

Travelers covers a wide range of vehicles with its commercial auto insurance policies, including: 

  • Passenger vehicles
  • Vans
  • Light trucks
  • Heavy and extra-heavy-duty trucks
  • Truck trailers
  • Vehicle fleets
  • Specialty vehicles

Travelers' commercial auto insurance benefits

There are many things about Travelers that business owners may find appealing, including: 

  • 24/7 claims service representatives
  • Claims specialists who understand specific industries and their exposures
  • Multinational insurance services with the ability to insure in more than 150 countries
  • A variety of options and discounts on policies
  • Travelers Lab Services, which uses technology to assess employee exposures

Travelers also offers business owners the ability to tailor a policy to meet their needs. 

“Customized coverage means insurance companies understand each business’ unique risks. Cookie-cutter won’t cut it,” says Robert Macoviak of Oyer, Macoviak and Associates in Boynton Beach, Florida.

How Travelers stacks up against other commercial auto insurance companies

One of the first places to start comparing Traveler is with its AM Best financial rating. This is a score that describes the financial solvency of an insurance company. AM Best gives Travelers the highest score possible – A++ (superior). This demonstrates that the company manages its assets well and is in a position to handle catastrophic claims if need be. 

Commercial auto insurance market share is another way to see how it stacks up. Travelers is second in terms of direct premiums written, according to NAIC, behind only Progressive. 

The NAIC also maintains what it calls a complaint index. This is a score that considers the number of formal complaints a company sees in relation to its market share. An average score is 1, with anything below that number being favorable. Travelers scored a weighted average of 0.406 in 2023 – well below the average.

How does Travelers' commercial auto insurance pricing compare with the competition?

Travelers does not publish average rates for commercial policies – each business needs to get a quote from an agent.

If you want a comparison point to see how Travelers rates stack up, small businesses pay an average premium of $147 per month, or $1,762 annually, according to small-business insurance broker Insureon.  

Factors that affect commercial car insurance rates include a business’ location, the vehicles it's insuring, the driving history of its employees, its claims history and its coverage selections.

Tips to save on Travelers commercial auto insurance

When talking to Travelers, ask about its discounts. Travelers says customers are eligible for up to 16% in savings by taking advantage of the following discounts: 

  • Good payer: Those with a good paying history pay less
  • Paid in full: Paying the entire premium at the start of the policy can save you money
  • Recurring billing through credit card or EFT: Automatic billing saves time and money

Of course, keeping claims low and having incident-free drivers is the best way to keep your commercial auto insurance costs low.

How to get the deductible waived by Travelers

A deductible is the amount a business has to pay out of pocket when it files a claim. But Travelers allows companies to waive some or all of the deductible by entering into its Premier Responsible Driver Plan. 

There are two components to this plan. One is accident forgiveness for those who have been accident-free over the years. Another is a deductible that is reduced by $100 each year you are accident-free for a total of $500 in savings.

How to buy Travelers commercial vehicle insurance

You’ll need to speak with a Travelers agent to get a quote. To find one near you, you can visit the company’s website or call customer service at 800-842-5075. Travelers, however, only sells commercial auto insurance in 21 states plus the District of Columbia.

When you reach Travelers, the agent will ask you questions about your business, get the details of the vehicle and ask about the drivers. When speaking with the representative, it is best to have VINs and driver’s license numbers ready. 

Once the agent has collected the basics, the agent will go over the coverage options for you to select. Choose the options that best protect your vehicles and business. After you have chosen the coverages, the quote will be presented to you. If this meets your approval, you will then need to pay the initial premium to start the policy and be insured. 

A quick note: Most insurance experts recommend insurance shoppers get at least three quotes before making a purchase decision.

Bottom line: Why go with Travelers for commercial auto insurance?

If the quote makes sense and beats the competition, going with Travelers makes a lot of sense. You’ll get the risk assessment expertise of a company that is in more than 150 countries with billions in premiums. Its existing customers seem happy – as indicated by its low NAIC index score.