Esurance Insurance Services | Company Review

Esurance insurance services

Esurance Insurance Services, founded in 1999, was designed to offer competitive auto, motorcycle, homeowners, renters, condo insurance, and life insurance through an innovative online platform. The company, after displaying that they could be profitable early on, was purchased by Allstate in 2011 and remains a wholly-owned subsidiary.

Esurance Insurance Services

Thanks to today’s technology, insurance shoppers can access a litany of highly-rated insurance companies who will compete for your business while consuming less of your time. Even the startup insurers are now able to get a foothold in the marketplace because they can offer their products nationally or even globally quicker and cheaper than ever before.

 

Because Esurance was able to magnify its presence in the marketplace so quickly and efficiently, it’s only logical that we offer a review of the company’s products and practices. Here, we’ll discuss Esurance Insurance Services and consider their car insurance products, financial stability, and overall customer satisfaction in the marketplace.

 

Esurance Insurance Service’s Financial Stability

AM Best logo

Certainly, when we shop for car insurance, we all want to get the lowest rate possible for the coverages we need. However, and more importantly, we want to do business with a company we can trust when we need them the most. Having a super-low insurance rate will seem irrelevant if our insurance company drags its feet and gives us the proverbial “run around” when we file a claim for damages or injuries.

The easiest and best method to look into a company’s financial stability is to check with the national rating services who are allowed to dig into a member company’s finances.

Rating CompanyRating
A.M. BestA+
S&P GlobalAA-
Moody’sAa3
J.D. Power Satisfaction Survey852 out of 1,000

 

Auto Insurance from Esurance

 

The personal auto policy offered by Esurance is a standard package of coverages that you can select from. Although your state and your lender or lease company (if you financed or leased your vehicle) will require you to carry certain coverages with minimum limits and maximum deductibles, your personal auto policy will offer at least the following coverages no matter which company you choose:

 

COVERAGEDESCRIPTION
Bodily Injury LiabilityPays for injuries to other drivers or passengers in an at-fault accident subject to the limits in the policy.
Property Damage LiabilityPays for repairs or replacement of another person's vehicle or property during an at-fault accident subject to the limits of the policy.
Medical PaymentsMedical Payments covers medical expenses for you and other passengers in your vehicle in an accident no matter who's at fault. This coverage will even cover you for injuries sustained in another person's vehicle or as a pedestrian up to the limit in the policy.
Personal Injury Protection (PIP)PIP covers the driver, all passengers, or a pedestrian involved in an accident no matter who's at fault. PIP helps pay for medical expenses, lost wages, loss of services, and funeral expenses up to the policy limits. This coverage is typically mandatory in "no-fault" states.
Uninsured/Underinsured MotoristUninsured/Underinsured motorist covers your medical expenses if the other driver (at-fault) is uninsured or underinsured. Some states also allow uninsured/underinsured property damage that covers your vehicle as well.
Comprehensive CoverageComprehensive coverage pays to repair or replace your vehicle after a non-collision event such as fire, vandalism, theft, or acts of nature subject to your deductible.
Collision CoverageCollision coverage pays to repair or replace your vehicle after an accident that involves another vehicle or object subject to your deductible.
Emergency Roadside AssistanceRoadside assistance is available if you are locked out of your vehicle or required roadside assistance like a tire change or fuel for an empty tank. Your coverage for each event is subject to the limit you purchased on your policy.
Rental ReimbursementRental reimbursement helps pay for rental expenses if you are in an at-fault accident or
hit by an uninsured driver. Most policies will have a limit per-day and per-accident.
 Esurance also offers a few optional coverages that you may want to consider as well: 
  • CarMatch Rental Coverage – This rental reimbursement coverage from Esurance works a little different than conventional rental reimbursement coverage. The CarMatch Rental Coverage from Esurance will pay the cost of a comparable rental vehicle when your vehicle is under repair after an accident. The company will pay your rental expenses for up to 45 days or $3,000 whichever is reached first. After reaching your limit, you will need to pay out-of-pocket for any additional rental costs.
  • Loan/Lease Coverage – The Esurance Loan/Lease coverage is similar to GAP insurance but with a limit of 25% of your vehicle’s actual cash value. If your car is a total loss or stolen and never recovered, Esurance will pay an additional 25% of your vehicle’s cash value to help fill the GAP between your car’s actual cash value and the balance on your loan or lease.

 

How do Esurance rates compare with their Competitors?

 

We find that Esurance relies on its ease of purchase for its selling strength rather than low rates compared to its competitors.

Since it’s difficult to do an apples-to-apples comparison when you don’t know the details of each apple, we can only offer a comparison based on the average driver insuring an average vehicle. As with most other car insurance companies, Esurance charges significantly more for young and inexperienced drivers. They are competitive with other companies if the driver(s) listed on the policy is accident-free.

 Here is an example of annual Esurance rates versus GEICO, Progressive, and Farmers: 

 

Driver ProfileEsuranceFarmersGEICOProgressive
18-year-old Female$8,326$9,928$4,702$8,488
18-year-old Male$10,268$9,542$4,114$7,342
42-year-old Couple$3,914$3,876$1,630$3,046
81-year-old Female$3,780$2,574$1,740$3,292

Average rates provided by Value Penguin.com

 

What about Discounts?

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Anybody familiar with car insurance shopping knows that low rates are all about the discounts you can qualify for. Esurance does a good job with discounts offers that can substantially reduce your monthly car insurance payment:

  • Multi-Policy – Purchasing more than one type of insurance policy
  • Multi-Car – Owning and insuring more than one vehicle on your policy
  • Safety Features – Cars equipped with multiple airbags, anti-lock brakes, and anti-theft features
  • Pay-In-Full Discount – Paying in full saves the company money so you will save as well
  • Claim-Free – When drivers have no claims history on their C.L.U.E. report
  • Roadside Assistance Discount – Provided when you buy this coverage from another company rather than Esurance
  • Good Driver – Must be licensed at least 3 years and have less than one ticket on your record
  • Good Student – Full-time students under the age of 25 with a minimum 3.0 average
  • Fast 5 Discount – A 5% discount for completing a quoting and purchasing online for the first policy term only
  • Switch and Save – This discount is awarded to customers who switch their insurance from another company to Esurance.
  • PAC 12 – This discount is for students and alumni of PAC 12 colleges
  • DriveSense – This discount of 10% is offered to policyholders who allow Esurance track their driving habits using a mobile app (qualifications apply)

 

What are Consumers saying about Esurance?

people talking icon

The best way to find out what consumers are saying about a company you are interested in is to do some online searches about the company. Be aware that many complaints posted online may be bogus because they may have been posted by a disgruntled employee or employees trying to offset complaints with positive recommendations.

When we consider consumer feedback about an insurance carrier, we typically check with J.D. Power, a company that surveys thousands of consumers that are verified as a current or former customer of the company.

According to J.D. Power’s Auto Claims Satisfaction Survey for 2017, Esurance was ranked 13th among the top 24 companies for claims service reported by consumers.

 

In Conclusion

 

Although Esurance has become a very popular insurance company in the United States, they seem to be about average when it comes to customer service and rates. They do, however, offer very good rates for policyholders who qualify for many of their available discounts. To find out if Esurance is the best fit for your in rates and value, you’ll only need a few minutes to go online and find out for yourself.