Esurance is a direct-to-consumer insurance company, which means individuals can buy products straight from the organization without having to go through an agent. Esurance sells the majority of their policies through their website, and offers a standard list of insurance products to consumers.
Esurance became popular in the late nineties and early 2000’s due to their superiority in internet-based insurance sales. They were one of the pioneers in this field, and it allowed consumers to shop for insurance without having to deal with a high-pressure sales agent.
The company provides auto insurance in 30 states, and also sells additional insurance products through their partners. Since their primary business is car insurance, they often have some of the best rates in the industry.
In May of 2011, Allstate announced that it was buying Esurance and Answer Financial from White Mountain Insurance Group Ltd. for $1 billion. Since then, the company has operated as a wholly owned subsidiary of Allstate. As far as company names which they operate under, the list is much smaller than most of their competitors:
- Esurance, Inc.
Esurance focuses on consumer insurance products, and offers a wide selection of coverage selections geared toward individuals and families. It should again be noted that many of these insurance products are not actually underwritten by Esurance, but instead by third party companies that they partner with.
Their offerings include:
- Car Insurance
- Motorcycle Insurance
- Homeowners Insurance
- Condominium Insurance
- Manufactured Housing Insurance
- Renters Insurance
- Flood Insurance
- Personal Umbrella Insurance
- Health Insurance
- Pet Insurance
- Boat Insurance
- Personal Watercraft Insurance
- ATV Insurance
- Snowmobile Insurance
- RV Insurance
- Travel Trailer Insurance
- International Insurance
- Commercial Auto Insurance
- Cell Phone Insurance
Esurance Rates (Auto)
As a direct provider, Esurance is able to offer lower auto rates than many of their competitors. A direct provider is an insurance company that provides insurance products directly to a consumer without having to go through an agent. By not going through an agent, the insurance company can save on sales commissions and pass those savings on to the policy owner.
Our insurance rate test showed that Esurance comes in below the average cost of their competitors. To insure a married 30-year-old couple with no accidents and the presets we used, the monthly cost would be $144. (Click here to see how we determine these rates.)
Esurance Claim Process (Auto)
The claims process with Esurance for an auto accident is very straightforward and has a lot of options compared to many of their competitors. A claim can be filed either online or by calling their 800 number, but it can also be filed using their claims app, available for iPhone, Windows Phone and Android.
Once a claim is filed, a specific claims representative is assigned to the case and they will remain on the claim until it is complete. For the policyholder that means there will be one point of contact during the entire process. This is a definite plus because during something as stressful as an auto accident it can become a problem when having to explain the same scenario to different people.
Esurance has set up a repair program called E-star that includes a network of preapproved repair facilities which Esurance policyholders can take their vehicles to. This is typical with most insurance companies and they have pre-negotiated rates due to the volume of business they can send. If an E-star repair center is selected to service the vehicle, Esurance will guarantee the repairs for as long as the policyholder owns the car.
Consumers should be aware that they are not required to have their automobile repaired at a pre-approved location. Insurance companies often push this because they get better prices and know the quality of work usually delivered. However, if a person has their own shop that they trust, or find somewhere that can do it for less, the insurance company is still obligated to pay for the repair up to the predetermined rate.
Esurance Better Business Bureau Rating
At the time of this review, Esurance has an A+ rating with the Better Business Bureau (BBB). Accredited since 1999, the majority of their filed complaints are regarding problems with the product or service.
In the past three years, Esurance has received 216 complaints through the BBB and 80 in the previous 12 months. 169 of the complaints have been resolved with the help of the BBB, and in 47 additional cases it was determined by the BBB that Esurance made a good faith effort to resolve the issue, but the customer was not satisfied with the result.
Esurance Overall Rating
Esurance appears to be a very reputable firm that is a good fit for individuals or families with relatively simple insurance needs. Someone looking to insure vehicles and domiciles would benefit from the low prices and the discounts for bundling their insurance products. Someone with a complicated estate may want to consult an insurance broker who has a wider range of insurance products and companies they can sell for.
The biggest selling point for Esurance is their discounted rates. As a direct-to-consumer insurance company, they reduce their costs by not having to pay sales commissions. This benefits consumers greatly because those savings go right back to them in the form of reduced premiums.
Esurance is a direct-to-consumer insurance company, which means individuals can buy products straight …
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About the Author
I am a former insurance agent turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.