Esurance is a primarily online insurance option that offers customers automobile insurance, as well as home insurance, renters insurance, flood insurance, health insurance, life insurance, and business insurance. The company also provides coverage policies for pets, cell phones, commercial vehicles, motorcycles, ATVs, boats, RVs, travel trailers, snowmobiles, scooters, and golf carts.
The company was founded in 1999 and helped to pioneer the concept of online auto insurance. The company’s motto, “Insurance for the Modern World,” is fitting, as Esurance is recognized for their development of user-friendly technologies. In addition to providing car insurance online, the company offers several interactive tools and mobile apps, including the ability to upload claim photos instantly, receive appraisal information via video sessions, and receive daily visual updates on repairs. According to Esurance, “convenient car insurance is a click or tap away.” It’s best suited for individuals who have simple, straightforward insurance needs, desire to maintain control over their own policy details, and prefer the ease of online quotes and customer service interactions.
As one of the top online insurance providers, Esurance was purchased by Allstate in 2011. The two companies, however, continue to function as separate entities. Esurance takes a drastically different approach to business, focusing exclusively on online and phone insurance sales and tools. They offer the same services, but in only 43 states and some only through partnering organizations. While smaller in size, Esurance has still insured over 5.2 million vehicles to date and currently manages nearly one million open and active policies.
Overview of Esurance Auto Insurance Company
Insurance company evaluations are complex, consisting of thorough research in a variety of fields. Ratings companies utilize several different methods when ranking insurance providers in areas like overall customer satisfaction, variety of policy offerings, easy of claims processing, agent interactions and assistance, policy pricing, and more.
Pros
Easy-to-use, first-rate website for web-savvy auto insurance buyers
Competitive policy pricing with additional discount opportunities
Simple policy and claims management via the Esurance mobile app
Satisfaction Rating
Claims Rating
Shopping Rating
Offerings Rating
Stability Rating
Overall Customer Satisfaction
With its focus on providing customers with a simpler, web-based auto insurance alternative, Esurance provides the best of both worlds: excellent insurance products that clients can count on, as well as innovated, user-friendly technology that allows for increased flexibility while requesting policy quotes, managing coverage options, and filing claims. Esurance is a direct-to-consumer insurance provider, which puts complete power over policy specifics in the customer’s hands. Many of the people using Esurance greatly appreciate the ability to manage their coverage whenever, wherever, and however they want.
J.D. Power, a globally recognized forerunner in consumer feedback, review services, and date and analytics, recently recognized Esurance for out-performing all other competition in overall customer satisfaction in California. The insurance company was announced as the J.D. Power “Highest Customer Satisfaction Among Auto Insurers in California” recipient in July of 2017.
This significant recognition was released as part of the J.D. Power 2017 U.S. Auto Insurance Study which assessed responses from 45,624 auto insurance customers. The study was conducted between the months of February and April and closely examined customer satisfaction in five separate categories. In order of importance, the categories considered for this award were:
Interaction
Policy Offerings
Price
Billing, Process, and Policy
Claims
Esurance president, Jonathan Adkisson, attributed the company’s success to its continued focus on customer care and ever-evolving approach to customer needs. He had the following to say in response to the award: “Esurance is changing insurance for the better. Insurance for the modern world is simple, fair, affordable – and involves relentless focus on the customer.” Adkisson was pleased to see that Esurance customers in California recognized the company’s efforts to deliver quality service at affordable rates. He concluded by saying that their “customers have peace of mind to enjoy their lives without worry because they are protected with Esurance.”
Esurance asserts that they make customer satisfaction their number one priority in order to continually improve the experience of their clients. They seek to utilize the latest technological advancements to provide their customers with competitively-priced coverage options, a more effective and stream-lined experience, and access to highly-trained and knowledgeable insurance experts. And, according to review information on the official Esurance website, insurers generally agree that the company’s efforts are working.
In addition to being ranked highest in consumer satisfaction among those insured in California, Esurance has an average overall customer rating of just fewer than 4.5 stars listed on their website. This rating is based on a total of 4,495 unedited reviews written by real policyholders and collected by an unbiased, independent third party company.
Positive Reviews
A total of 4,263 customers provided a rating of four stars or more. The majority of these positive reviewers gave the company five stars and were exceedingly pleased with the hassle-free, quick, and easy purchase process, lower auto insurance coverage rates, and knowledgeable customer service representatives. The remaining 594 four-star reviewers had similar endorsements.
Negative Reviews
Only 106 Esurance customers gave a rating of two stars or less. The majority of these negative reviewers gave the company a single star and had significant concerns regarding increased auto insurance policy quote changes at checkout, difficulty logging into the website and technological glitches, and constantly increasing monthly charges despite excellent driving records. The remaining 36 two-star reviewers had similar complaints.
Overall, the majority of Esurance customers seem to feel that the company provides good service at a fair price, whether it’s via the online system when requesting a quote, over the phone when managing policy information, or through the app when filing a claim.
Claims Process
Esurance’s handling of auto insurance claims is where the company struggles most. In the J.D. Power 2016 U.S. Auto Claims Satisfaction conducted November 2015 through August 2016, Esurance was given a rating of 833 out of 1,000, a number well below the industry average of 860. In fact, only three other auto insurance companies (Kemper, National General, and MAPFRE Insurance) ranked lower than Esurance.
The study evaluated 12,228 auto insurance customer responses, all of whom had worked through a claims process within the six month period prior to the assessment. J.D. Power closely examined auto claims satisfaction in six separate categories. The categories considered for this award were:
First Notice of Loss
Service Interaction
Appraisal
Repair Process
Rental Experience
Settlement
Esurance has spent significant time and resources developing simple, easy-to-use tools to expedite insurance claims for their policy holders. They offer around the clock access to dedicated service representatives, but the majority of the process can take place online. Esurance Mobile allows customers to report, track, and manage their claim from their phone. In fact, the app allows auto insurance policy holders to upload photos, complete a video appraisal, and receive daily repair updates – all without ever speaking with a company official.
This method may negatively impact customer satisfaction with Esurance’s claims process, however. Mark Garret, the director of insurance industry analytics at J.D. Power, explains that “While technology offers a customer more options, what we find is that even when customers file a digital claim they still want to talk with someone to get an explanation of the process, what to expect along the claims pathway and the timing.” Ultimately, customers are most satisfied with the auto insurance claims process when technology is utilized in conjunction with other communication and resolution methods.
Shopping Experience and Price
In the J.D. Power 2017 U.S. Insurance Shopping Study, Esurance was awarded a total of 840 points on a 1,000 point scale. The study specifically assesses the auto insurance shopping experience, as well as customer purchasing behaviors and satisfaction. J.D. Power measured customer satisfaction in three separate categories. In order of importance, the categories considered for this award were:
Price
Distribution Channel
Policy Offerings
The study assessed responses from over 16,400 shoppers who requested quotes for auto insurance policies, as well as 50,000 customer evaluations taken during April, July, and October in 2016 and January 2017. While Esurance was 39 points away from the number-one spot, it was only two points below the industry average of 842. The company also received a higher ranking than other popular companies, including Progressive (831), Allstate (833), and GEICO (839).
Esurance is also committed to making it easy for customers to save money by taking advantage of certain promotions and for demonstrating safe driving practices. The company offers a wide variety of auto insurance policy, driver, and vehicle discount opportunities, creating the potential for policy holders to lower their monthly bill over time. Some of the most popular and widely used discounts include:
Fast 5 Discount
The Fast 5 discount allows rewards new customers for starting the auto insurance quote process online. Qualifying policy holders can receive up to five percent off of their first-term premium.
Multi-Policy Discount
This discount is perfect for individuals bundling multiple policies, such as auto insurance and home insurance. Savings will vary, but both policies will qualify for a discount.
Paid-in-Full Discount
When auto insurance customers pay their premiums in a single lump sum, they can save up to 10 percent.
Switch & Save Discount
While the Switch & Save discount isn’t available in every state, many new customers can receive a five percent discount for switching their auto insurance coverage from another company to Esurance.
Claim-Free Discount
Esurance also likes to reward long-term policy holders for driving safely. The Claim-Free discount varies but is available for drivers who have gone 60 straight months without filing an insurance claim.
DriveSense Discount
Customers who download, activate, and use the DriveSense app receive a five percent discount. Over time, Esurance evaluates driving habits and offers additional saving reward opportunities. It’s important to note that this service is not provided in every state.
Defensive Driver
Older policy holders can receive up 10 percent off of certain coverage by taking defensive driving courses. The age to qualify for this discount varies per state.
Good Driver Discount
Another way Esurance rewards good driving is by providing a 30-40 percent discount off of premiums for customers who have received no penalties or points on their license over the last three years.
Multi-Car Discount
Customers can also save varying amounts of money by adding multiple vehicles to their auto insurance policy.
Available Auto Insurance Offerings
While Esurance is best known for insurance products like auto insurance, home insurance, renters insurance, and motorcycle insurance, the company actually offers coverage for the following as well:
ATV
Boat
Business
Classic Car
Commercial Auto
Condo
Flood
Golf Cart
Health
Life
Pet
Phone
RV
Scooter
Segway
Snowmobile
Travel to Mexico
Travel Trailer
Umbrella
This extensive coverage list makes Esurance a credible option for customers with a variety of needs. Many of these secondary coverage options, however, are provided through partnering companies, not Esurance itself.
It’s also important to note that Esurance is not licensed to provide coverage in every state. Policy availability varies per service so some customers may be unable to get the amenity they need depending on where they live. For example, car insurance is only available in 43 states; individuals residing in Alaska, Delaware, Hawaii, Montana, New Hampshire, Vermont and Wyoming are unable to receive coverage. Likewise, motorcycle insurance is only available in the following 11 states:
Arizona
California
Florida
Illinois
Indiana
Minnesota
Ohio
Pennsylvania
Tennessee
Texas
Wisconsin
Additionally, Esurance home insurance coverage is only available in 31 states and renters insurance is available in only 21 states. This can be particularly problematic for individuals seeking to bundle their policies, as all of the services they need may not be offered in the state where they reside. Esurance does, however, encourage potential customers living in excluded states to check the website regularly. The company is continually expanding and plans to add more coverage locations over time.
Company Stability
When it comes to auto insurance, customers want to know that the company they’ve selected is financially stable enough to remain in business long-term and pay for any potential claims. This is an area in which Esurance exceeds the standard.
While managed separately, Esurance is officially owned and backed by Allstate, the largest publically held personal lines insurer in the United States. Allstate is a Fortune 100 company with total assets exceeding $130 billion and has been in business for almost 90 years.
Esurance’s affiliation with Allstate makes it a very reputable multiline insurance provider. The company regularly receives first-rate industry knowledge and excellent economic stability through their owner. As a result, A.M. Best, a leading independent insurance news and rating organization, gave Esurance a financial strength rating of A+. This rating means that Esurance has the financial capability to handle all of the customer claims they receive and that insurers can expect the company to remain in business for the foreseeable future.
