Connect with us

News

Nationwide Car Insurance vs. Travelers Car Insurance: Which Is Better in 2021?

Published

on

Nationwide is the better insurance company for most drivers. Its average rates are sometimes lower than rates at Travelers, and it has higher customer satisfaction scores. That said, Travelers’ overall average rate is lower than Nationwide’s.

Customer Satisfaction

Nationwide

U.S. News Overall Rating

Travelers

U.S. News Overall Rating

Nationwide customers were very satisfied with the company’s customer service and claims handling. When it came to following through on a claim, Nationwide came in second in our rankings. Only USAA received a higher score from its customers. “They have taken good care of me when I needed them,” wrote one survey respondent. However, people were not as likely to renew or recommend Nationwide, leading it to seventh place in our ranking in that area.

Nationwide is overall the better insurance company for many drivers. It received high marks for customer service and claims handling, while Travelers was near the bottom of our survey.

Travelers came in last place for customer service. In general, the company seemed to inspire neither love nor hate. One respondent seemed to answer for many when they wrote, “It is not that special.”

Read our full Nationwide review »

Read our full Travelers review »

Nationwide vs. Travelers: Pros & Cons

Nationwide

    • Excellent claims handling

    • Slightly higher overall average rates

    • Not likely to be recommended or renewed

Travelers

    • Rates are a bit lower than Nationwide’s

    • Fourth cheapest insurer in our study

    • Low customer service ratings

Which Is Cheapest?

Nationwide and Travelers have very similar rates, and they’re both close to the industry average. Nationwide’s overall average is $1,284, which is good for fifth place in our study. The overall average rate at Travelers is $1,251, which lands it at fourth place. But that’s a difference of only $33 a year. Both of these rates are just under the industry average of $1,321.

In short, Travelers has cheaper overall average insurance rates than Nationwide, but by a slim margin. For some specific categories, Nationwide’s rates are cheaper.

These rates fall solidly in the middle of the road, so looking at particular driver profiles might help you make a choice. When comparing Nationwide and Travelers, the cheaper rate often depends on the driver’s history and profile, even when looking at averages.

Which Is Cheapest for Men?

 

Nationwide

Travelers

Industry Average

25-year-old male

$1,608

$1,398

$1,554

35-year-old male

$1,227

$1,306

$1,278

60-year-old male

$1,128

$1,114

$1,183

For 25-year-old men, Travelers is cheaper by 13%. But for 35-year-old drivers, Nationwide is 6% cheaper. For 60-year-old men, the average rates from these two companies are only $14 apart. To be exact, Travelers has the less expensive rate by only 1%. Nationwide and Travelers both have competitive rates for men, so the cheaper choice depends on age.

Our study does not include Hawaii, since the rates there do not vary by age and gender demographics.

To find these average rates, we created driver profiles for men in each of the following ages: 25 years, 35 years, and 60 years. The profiles have a clean driving record, 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for Women?

 

Nationwide

Travelers

Industry Average

25-year-old female

$1,497

$1,348

$1,487

35-year-old female

$1,197

$1,266

$1,274

60-year-old female

$1,049

$1,073

$1,149

It’s a similar story when comparing rates from these two companies for women. For 25-year-old women, Travelers is the cheaper option by 10%. But for 35-year-olds, Nationwide again has lower rates, as it does for men, this time by about 5%. And the rates for 60-year-old drivers remain close, with a difference of only $24. Nationwide is the less expensive insurer here, by about 2%. Again, age makes a difference in finding the cheaper company.

Our study does not include Hawaii, since the rates there do not vary by age and gender demographics.

To find these average rates, we created driver profiles for women in each of the following ages: 25 years, 35 years, and 60 years. The profiles have a clean driving record, 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for High Mileage?

 

Nationwide

Travelers

Industry Average

12,000 miles annually

$1,284

$1,251

$1,321

The amount of driving you do may affect your insurance rates, with lower rates for driving less. But it’s not the huge savings you might expect. Let’s look first at rates for driving 12,000 miles per year, which is typical in the United States. Rates from these two companies are very close, separated by only $33. Travelers has the lower rate by about 3%. Both of these rates are just below the industry average of $1,321.

To find these average rates, we created driver profiles with high mileage (12,000 miles per year). The profiles covered men and women in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for Low Mileage?

 

Nationwide

Travelers

Industry Average

6,000 miles annually

$1,272

$1,206

$1,278

Driving half as much each year does not mean paying half as much for car insurance. It doesn’t even mean paying significantly less. With Nationwide, a driver would only save $1 a month by driving less according to the average rates. Travelers gives these drivers a little more of a break – but not much. The representative rate there drops by $45, which translates to just under $4 a month in savings.

To find these average rates, we created driver profiles with low mileage (6,000 miles per year). The profiles covered men and women in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for Good Credit?

 

Nationwide

Travelers

Industry Average

Good credit

$1,258

$1,204

$1,311

Insurers look at credit history when setting rates, and they consider good credit to be an indicator of lower driving risk. Drivers with higher credit ratings are likely to be offered lower rates.

Nationwide and Travelers have average rates within $50 of each other and just below the industry average. Travelers has slightly lower average rates for this group, by about 4%.

To find these average rates, we created driver profiles with good credit. We used men and women aged 25 years, 35 years, and 60 years. The profiles have a clean driving record, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

Which Is Cheapest for Bad Credit?

 

Nationwide

Travelers

Industry Average

Bad credit

$1,777

$2,204

$2,227

Nationwide is the less expensive option for drivers with rocky credit histories, with an average rate that’s about 20% lower than the rate from Travelers.

The industry average rises by 70% for drivers with bad credit when compared with the rates for good credit. Both Nationwide and Travelers have rates that are below the industry average for this group, but their rates still jump quite a bit. Drivers with poor credit have an average rate at Nationwide that’s 41% higher than the rate for those with good credit. With Travelers, drivers with bad credit have an average rate that’s 83% higher.

To find these average rates, we created driver profiles with poor credit. We used men and women aged 25 years, 35 years, and 60 years. The profiles have a clean driving record, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

Which Is Cheapest for Good Drivers?

 

Nationwide

Travelers

Industry Average

Clean record

$1,284

$1,251

$1,321

Insurance companies consider your driving record to be one of the best indicators of your risk level. If you’ve got a clean record, you’re likely a less risky driver who will make fewer claims. Insurance companies reward good drivers with lower average rates.

Nationwide and Travelers have similar rates for this group. Nationwide’s average rate of $1,284 is only $33 higher than the average Travelers rate of $1,251 for good drivers. These are both a bit below the industry average of $1,321.

These rates make Travelers the fourth cheapest insurer and Nationwide the fifth cheapest out of nine insurers in our study. USAA is the cheapest insurer, with an average for good drivers of $875. At the other extreme, Allstate is the most expensive, with an average rate of $1,788.

To find these average rates, we created driver profiles with a clean record. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest After a Speeding Ticket?

 

Nationwide

Travelers

Industry Average

With 1 speeding violation

$1,558

$1,662

$1,604

Driving above the speed limit is risky behavior in the eyes of insurance companies, and they will raise rates for drivers with a speeding ticket in their history. This time, Nationwide is the cheaper choice, with an average rate of $1,558. Travelers’ rate of $1,662 is about 7% higher.

These rates sit on either side of the industry average. Nationwide’s rate is 3% lower than the average, while Traveler’s rate is 4% higher. Allstate still has the highest rate for drivers with a speeding ticket, at $2,034, and USAA still has the lowest average rate for this group, at $1,049.

To find these average rates, we created driver profiles with one speeding violation. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest After an Accident?

 

Nationwide

Travelers

Industry Average

With 1 accident

$1,910

$1,764

$1,872

If you’ve had one traffic accident, insurance companies see it as a sign that you are likely to have another. That means rates will likely be higher with an accident on your record. This is true for both Nationwide and Travelers. The average rate with one accident goes up to $1,910 with Nationwide and $1,764 with Travelers.

These rates straddle the national industry average of $1,872. The two companies trade places for cheapest, with Travelers about 8% cheaper than Nationwide’s rate. Following the trends we saw in other categories, USAA has the cheapest average rate for drivers after one accident at $1,219, and Allstate has the most expensive average rate at $2,514.

To find these average rates, we created driver profiles with one accident. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest After a DUI?

 

Nationwide

Travelers

Industry Average

With 1 DUI

$2,559

$2,024

$2,112

Insurance companies tend to come down hard on those who have a citation for driving under the influence or driving while intoxicated. These two companies are no different, with some of their highest average rates for this group. Nationwide’s rate of $2,559 is 21% higher than Travelers’ average rate of $2,024.

Travelers’ rate is close to the industry average of $2,122, while Nationwide’s rate is 21% higher than that average. We found the cheapest rates for drivers with a DUI at State Farm, which had an average rate of $1,568. The most expensive rate for this group was with Geico, with an average of $2,836.

To find these average rates, we created driver profiles with one DUI. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Discounts

Nationwide and Travelers offer many of the same discounts that other insurance companies offer, including for bundling policies and being a good driver.

Nationwide customers gave the company slightly higher marks for its discounts. “They are not the least expensive,” wrote one customer, “but they are very good with my claims, and I like the bundling price discount.”

Both companies also offer tracking apps that monitor your driving for safe practices and offer lower rates. Nationwide’s SmartRide and Travelers’ IntelliDrive apps both received good marks from customers who had used them.

The availability of these discounts depends on your state, your insurance company, and your driving record, so be sure to check with the company to find out which discounts are available to you.

Discounts

Nationwide

Travelers

Customer Loyalty

No

Yes

Student/Good Student

Yes

Yes

Student Away From Home/Storage

Yes

Yes

Bundling/Multi-policy

Yes

Yes

Multi-vehicle

Yes

Yes

Good Driver/Clean Record

Yes

Yes

Defensive Driving Course

Yes

Yes

Employer/Affinity Group

Yes

Yes

Teacher

Yes

No

Military

No

No

New Car/Safety/Anti-theft Equipment

Yes

Yes

Low Mileage

Yes

Yes

Paperless/Online Billing

Yes

Yes

Auto-pay/Pay-up-front

Yes

Yes

Tracking Device Program

Yes

Yes

How We Did This Comparison

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings. 

We surveyed 4,806 consumers who filed a car insurance claim or started a new auto insurance policy in the last five years, asking questions about their car insurance company. Of the survey respondents, 50 filed a claim with Nationwide and 47 started a policy with Nationwide, while 58 filed a claim with Travelers and 81 started a policy with Travelers. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. In general, questions for consumers who have filed a claim were given more weight than questions for consumers who have only opened a policy. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies Rankings, as well as our subrankings for best customer service, claims handling, and customer loyalty, and this head-to-head comparison.

Our Study Rates

To get comparative insurance rates for this study, U.S. News also worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 12,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

Source link

Continue Reading

News

Are Sallie Mae Student Loans Federal or Private?

Published

on

When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

Learn more:

Source link

Continue Reading

News

Tips to do some fall cleaning on your finances

Published

on

Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

Source link

Continue Reading

News

How to Get a Loan Even with Bad Credit

Published

on

Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.

 

 

Source link

Continue Reading

Trending