Esurance is an Allstate brand that has been a popular company for auto insurance and for customers who travel outside of the U.S. to Mexico and Canada.
Esurance is a wholly-owned subsidiary of Allstate, providing a range of car insurance policies directly to consumers online and over the phone. The website launched in December 1999, initially offering auto insurance in just four states. Currently, Esurance offers its products and services in 43 states, encompassing almost 90 percent of the population of the United States.
One of the initial selling points of the company was that it offered comparison quotes on its website, allowing consumers to compare rates with other major insurance companies. Since then, many other insurance companies have begun offering comparison quotes. Allstate acquired Esurance in 2011, and it now offers homeowner’s insurance and health insurance. It currently operates from 17 offices across the country with more than 3,000 associates.
Esurance is a company founded and focused on the internet and the online experience, which means they are just about the most convenient auto insurance company on the market, assuming the consumer has internet access of some kind. The entire insurance process is accessible online and easy to navigate, which means there is very little a customer can’t do without ever interacting directly with a live human being. In fact, it is hard to imagine a company being any more convenient than Esurance, in that respect.
- Medical Payments Coverage protects the policyholder and others in the vehicle for medical expenses incurred during an accident, including funeral expenses.
- Personal Injury Protection (PIP) helps cover medical expenses, and often times lost wages, for the policyholder and any passengers hurt in an accident, regardless of who is at fault. This type varies greatly by state, with 15 states being mandatory, according to a Feb 2015 article posted by the Insurance Information Institute.
- Comprehensive Coverage is to cover such events as natural disasters, theft, and vandalism, which cause damage to the insured vehicle.
- Collision Coverage is to assist the policyholder if they have caused an accident. This type covers repairs and damages to the vehicle. When paired with Comprehensive, it would amount to “full-coverage.”
- Emergency Roadside Service Coverage (ERS), also known as towing and labor coverage, is protection for towing services and other related roadside service fees. It’s important to remember that even with “Full-Coverage” towing services are not included, which is why this could be a beneficial add-on to the policy. This type requires consumers to have Collision Coverage first.
- Rental Car Coverage provides a means to get a rental when the covered vehicle is in the shop for covered repairs. In order to qualify for this coverage, the vehicle must be insured with Comprehensive and Collision Coverage.
- Loan/Lease Gap Coverage covers some, if not all, of the difference in the depreciated value of the vehicle should it be declared a “total loss” for any given reason. This type of policy would be great to consider for those who have recently purchased a new car.
- Customized Parts and Equipment Coverage is for those who have added personal value to their vehicles on items not limited to stereo systems, GPS monitors, wheels, and custom paint. For those who have a lot of time and money put into their stock vehicles, this type of coverage may be imperative to include in the policy.
- Bodily Injury (BI) and Property Damage (PD) are mandatory in all states, each with their minimum standard, other than FL, which only requires PD and in the state of NH, which only mandates Financial Responsibility Coverage. BI covers medical expenses and lost wages for injured drivers or passengers, while PD covers the repairs of damage to other vehicles or structures.
- Liability Coverage in No-Fault States is designed to cover personal injury and possible litigation costs. The policyholder must first have PIP in order to qualify.
- Uninsured Motorist Liability pays for medical expenses and lost wages of the policy holder, authorized drivers and any passengers when the accident causing individual is uninsured.
- Underinsured Motorist Liability this is similar to Uninsured Liability, however, this covers what the at-fault driver’s insurance does not.
- Uninsured/Underinsured Property Damage helps cover the policyholder’s repairs if the at-fault driver is not covered, or does not have enough coverage to pay for damages.
When requesting a quote, consumers have the option to view three side-by-side quotes including “Less Coverage,” “Standard,” and “More Coverage.” In order to maintain consistency in comparisons, the Review Team requested an estimate for a driver 27 years of age, financing a 2011 Toyota Camry, as it’s the best-selling car according to Time.com, and discovered that the monthly premium would amount roughly to $76.30 for the “Less Coverage” policy, $83.30 for Standard and $90.63 for “More Coverage” option. With each add-on option above the “Less Coverage” limit, there will be a slight increase in the monthly premium. Again, prices vary with each state, driver and their vehicle type.
Esurance does not offer coverage to AK, MT, WY, HI, NH, VT, DE, and District of Columbia.
A few examples include an anti-theft discount for customers who use anti-theft devices in their vehicles, a good student discount for students with good grades, an anti-lock brakes discount and a homeowner’s discount. There is also a discount for policyholders who are members of a roadside assistance organization like AAA. There is even a Pac-12 discount for students who attend certain Pac-12 universities (examples being University of Arizona, University of Utah and University of Oregon). All of these discount options provide plenty of opportunities to reduce premiums, which is good considering the initial rates are only average.
The website guarantees up front that they settle claims in 10 days or less. This is an impressive boast, but they seem to keep to their word. Widespread anecdotal evidence certainly backs this up, with hundreds of customer reviews across numerous websites praising them for their claim response time.
Claims may be submitted and tracked over the phone, online or by using the company’s mobile app.
Esurance was founded in April, 1998.
Better Business Bureau (BBB) Rating
The Better Business Bureau gives Esurance an A+ overall score, based on the length of time in business and the relatively small complaint volume at the BBB website compared to the size of the business. Also, it should be noted that Esurance has a strong commitment to environmental responsibility. To carry out this commitment, they have a totally paperless customer experience. Also, their entire fleet of claims vehicles are hybrid cars. Plus, every Esurance office carries out a full recycling program, uses biodegradable kitchen utensils and installs motion sensors on office lights.
Customer service, via phone or internet, is available at all times around the clock, so no matter what happens or when, it should be possible to get hold of somebody. Also, Esurance makes it easy to report, track and manage claims online or through Esurance Mobile. It is even possible to monitor ongoing car repairs using their Repair View feature.
The range of policy options is respectable, if not completely thorough, and rates are fairly good, if not among the lowest in the industry. However, the full range of discounts that the company offers is truly impressive. These include standard discounts like multi-policy and safe driving, but there are many others that are rare or even unique to Esurance.
Esurance provides hundreds of customer reviews on their own website, including even some negative reviews. This shows a willingness to offer honest and accurate information, and it gives customers the chance to voice concerns or to point out things they like about Esurance products and services.
There are a number of reasons we recommend using Esurance for auto insurance:
- Excellent coverage features
- A+ rating with BBB
- Good Pricing
- Available contact information
- Easy to submit and track a claim online
Though Esurance offers hundreds of customer reviews on their own website, including negative reviews, it should be pointed out that the overall rating on the company’s website is notably higher than the overall rating on any other non-affiliated website. Esurance’s average customer review currently stands at 3 stars, but all other consumer review websites give Esurance somewhere between 1 and 1.5 stars overall.
Despite offering an impressive array of discounts on insurance policies, there are hundreds and hundreds of complaints across the web from former policyholders about their insurance policies getting canceled after just a single minor accident. Many others complain about premiums being increased by 10 percent or more after a single minor accident, even despite decades of prior safe driving. These kinds of complaints are widespread, and there many of them even on the company’s own website. One wonders if perhaps the company is not offsetting the vast number of discounts they offer by being quick to take them away or even end policies altogether.
Though Esurance continues to expand into more and more places, their products and services are still not offered in all 50 states. Also, with the company’s focus on internet convenience (a focus that they carry out very effectively), it should be noted that some consumers prefer to interact mostly or exclusively with an agent face to face. Some people also prefer to get paper statements that they can file. For those kinds of people, Esurance is probably not the best way to go.
The company’s score at the Better Business Bureau has dropped recently from an A+ to an A-, and while this is still an excellent score, it does bear noting. The BBB attributes this drop to the company’s failure to address and resolve some customer complaints. It is possible that the score will continue to drop if these customer complaints remain unresolved.
Finally, it must be pointed out that routine vehicle maintenance does not seem to be covered, nor will any personal possessions stored inside the vehicle be covered should anything happen.