Esurance – An Overview

Esurance is one of the best-known car insurance companies in the United States. Today, the company has average insurance ratings in terms of claims satisfaction, although the company’s online tools makes Esurance popular among tech-savvy customers. Esurance is headquartered in San Francisco. In 2011, Esurance was purchased by Allstate and is now a wholly owned subsidiary of Allstate.

Esurance History

esurance auto insuranceEsurance was founded in San Francisco in 1999, making it one of the youngest insurers in an industry dominated by century-old companies. Esurance instantly differentiated itself from the competition by selling policies directly to consumers over the internet. While its competitors were relying on in-person meetings and phone calls to sell car insurance, Esurance used technology to get ahead.

In 2000, Esurance was acquired by Folksamerica Holding Company, a subsidiary of White Mountains Insurance Group. Then, in May 2011, Allstate announced that it was purchasing Esurance and rate-comparison site Answer Financial for approximately $1 billion. Today, Esurance is a wholly owned subsidiary of Allstate. Combined, Allstate and Esurance are the sixth largest car insurance company in the United States.

Esurance also claims to be one of the first insurance companies in the United States to sell policies to same sex couples. In 2004, Esurance began selling bundled car insurance policies to any group of people living together, meaning same sex couples were eligible for bundling discounts.

Today, Esurance continues to advertise to tech-savvy drivers. In 2011, the company launched a marketing campaign with the slogan, “insurance for the modern world”, for example. Esurance emphasizes its easy shopping experience and efficient claims process.

Esurance Insurance Rankings

Esurance’s customer satisfaction ratings are generally average. The company has slightly fewer complaints than average for auto insurance, although it has slightly more complaints for home insurance.

In 2018, Esurance earned average marks from J.D. Power. Customers ranked Esurance as “about average” in terms of insurance shopping and claims satisfaction.

Notably, Esurance has an “A+” or “Superior” rating from A.M. Best, indicating that it’s one of the strongest companies in the insurance industry from a financial perspective. Many of Esurance’s competitors, even larger companies like American Family Insurance and Ameriprise, only have an “A” or “Excellent” rating.

What Makes Esurance Unique?

Esurance has certain characteristics that differentiate it from the competition:

Available in 43 States: Esurance isn’t available nationwide, but it is available in 43 states (not available in Montana, Wyoming, Vermont, New Hampshire, Delaware, Alaska, or Hawaii).

Emphasis on Online Tools and Shopping: All major insurance companies make it easy to shop online today. However, Esurance was one of the first to emphasize online car insurance shopping back in 1999. Today, they continue to release great online tools, easy policy management dashboards, and other features appreciated by tech-savvy policyholders.

Multiple Insurance Options: Esurance offers both car insurance and home insurance, allowing homeowners to access bundling discounts. Esurance also offers insurance for motorcycles, ATVs, snowmobiles, scooters, golf carts, and even Segways.

Other Insurance Products Are Available Through Allstate: When you’re an Esurance customer, you can easily add Allstate insurance products to your account. Through Allstate, Esurance customers can access condo, umbrella, business, flood, RV, classic car, travel trailer, and commercial auto insurance, for example, along with insurance for driving in Mexico, pet insurance, boat and watercraft insurance, and cell phone insurance.

Is Esurance a Good Insurance Company? Our Review

Esurance is one of the biggest car insurance companies in the United States. It ranks about average in terms of claims satisfaction and price competitiveness: it’s not the cheapest or best car insurance in America, but it’s certainly not the worst either.

With that in mind, Esurance could be the cheapest option for certain drivers. Depending on your driving history and demographics, you could enjoy cheap, efficient car insurance through Esurance.

Where Esurance really separates itself from the pack is with its approach to technology. The company was the first major brand to sell car insurance over the internet back in 1999, for example. Today, it offers unique programs like the DriveSense mobile app, where drivers with safe driving habits can save up to 30% on their car insurance premiums in exchange for using the tracking app.

Esurance Auto Insurance Policies and Products

Esurance has a number of auto insurance policies and products that separate itself from the pack, including:

DriveSense: Esurance’s DriveSense allows drivers in 37 states to save money on car insurance in exchange for sharing driving data. You install the DriveSense app, and the app tracks driving behavior like your speed, hard braking patterns, and the time of day you drive. All drivers receive a 3% discount just for using DriveSense, while safe drivers can save 30% or more.

Pay Per Mile: This policy is only available in Oregon, although it’s popular among drivers who drive fewer than the average number of miles per year. Esurance’s Pay Per Mile policy charges drivers a base rate along with a per mile rate for up to 150 miles per day. Mileage is tracked using a device that plugs directly into your car’s diagnostic port. If you work from home or have a short commute in Oregon, then Esurance’s Pay Per Mile plan can be very affordable.

CoverageMyWay: CoverageMyWay is an online tool from Esurance that helps you pick the perfect car insurance policy. It helps you decide whether or not you need rental car coverage, for example, emergency roadside assistance, customized parts and equipment coverage, and other features.

Final Word

Esurance is available in 43 states across America. It doesn’t have the excellent ratings of some of its larger competitors. However, Esurance remains one of the biggest and most popular insurers across the country. Programs like DriveSense and Pay Per Mile can help certain drivers save hundreds of dollars per year on car insurance. Although it’s not the right choice for everyone, Esurance remains popular across the country.

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