Esurance Car Insurance Review

Car insurance for cost-conscious drivers

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Esurance

Esurance, an Allstate company, was one of the first insurance companies that allowed customer to buy car insurance online. Since it issued its first policy in 1999, it has expanded to insure residents in 43 states and also offers homeowners, renter’s, and motorcycle policies.

Rather than having to work with an agent to get a quote or purchase insurance, Esurance allows you to buy your policy completely online. By selling directly to consumers, Esurance is able to reduce its costs and pass those savings on to customers.

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
Pros
  • Potential savings for drivers who switch insurers

  • DriveSense discount

  • Rideshare insurance available

Cons
  • Lower-than-average customer satisfaction rankings

  • Cancellation fees apply

  • Not available in all states

Key Takeaways
  • Esurance was started in 1999, but it is now a part of Allstate.
  • The company is headquartered in San Francisco.
  • It sells insurance products directly to consumers through its website.
  • Besides car insurance, Esurance also sells homeowners, renter’s, and motorcycle insurance policies.
  • Esurance only offers car insurance to residents in 43 states.
Company Overview
  • Year Founded 1999
  • Official Website www.esurance.com
  • Insurance Offered Auto, homeowners, renters, motorcycle
  • Customer Service Phone: 1-800-378-7262

Pros Explained

  • Potential savings for drivers who switch insurers If you currently have insurance with another company and switch to Esurance, your savings could be significant. According to the company, drivers who switched to Esurance saved $462 on average.
  • DriveSense discount If you sign up for the DriveSense program, you automatically receive a 5% discount. Based on your driving habits, you could qualify for more discounts through the program.
  • Rideshare insurance available In select states Esurance offers ShareSmart, a rider you can add to your policy to get additional protection if you drive for services such as Uber or Lyft.

Cons Explained

  • Lower-than-average customer satisfaction rankings Esurance had a low ranking in the J.D. Power U.S. Auto Claims Satisfaction Study, with a rating below the industry average.
  • Cancellation fees apply Many car insurance companies allow you to cancel your policy without penalty, but Esurance will charge you a cancellation fee if you end your policy before its expiration date.
  • Not available in all states Esurance only offers car insurance policies to residents in 43 states. If you live outside of its service area, you’ll have to get coverage from another company.
$547 Million

The amount Esurance collected in annual premiums in 2019

Esurance Car Insurance Coverage Options

Esurance offers multiple insurance options so you can customize a policy that fits your unique needs. Whether you want a simple, affordable policy that meets state minimum requirements or a more robust policy, you can buy coverage for your vehicle through Esurance and get peace of mind.

Collision

With collision coverage, your vehicle is covered if you’re in an accident with another vehicle or object.

Comprehensive

Comprehensive insurance pays for damages to your vehicle that occur beyond accidents, such as storms, floods, or vandalism.

Emergency Roadside Assistance

If you’re stranded on the side of the road due to a flat tire, dead battery, or because you ran out of gas, emergency roadside assistance can help. Esurance’s roadside assistance will cover up to $75 per incident.

Liability

Liability coverage gives you protection if you’re in an accident with another party and are at fault. There are two parts:

  • Bodily Liability Bodily injury insurance pays for the other party’s damages, including medical expenses and lost wages.
  • Property Damage Liability Property damage liability pays to replace or repair the other party’s vehicle or property.

Loan/Lease Payoff

Loan or lease payoff insurance is another term for gap insurance. It pays for the difference between your car’s cash value and what you owe on your loan or lease. 

Medical Payments

Medical payments coverage will pay for the medical bills of you and your passengers if you’re injured in an accident, regardless of who was at fault.

Personal Injury Protection (PIP)

PIP, which is required in some states, is also known as “no-fault coverage.” It’s insurance that pays for your medical expenses, regardless of who was at fault in the accident. It typically covers you before your health insurance kicks in, paying for ambulance rides, hospital charges, and lost wages.

ShareSmart

If you drive for Uber or Lyft, you may be able to get coverage with Esurance’s ShareSmart policy, car insurance for rideshare drivers. It covers you when you’re not protected by the rideshare company’s insurance. ShareSmart is only available in California, Illinois, and New Jersey.

Uninsured/Underinsured Motorist

If you’re in an accident with someone who is uninsured, doesn’t have adequate insurance, or who leaves the scene without giving their information, uninsured motorist insurance and underinsured motorist insurance provide essential protection. They pay for repairs to your vehicle when the other party is uninsured or lacks sufficient insurance.

Esurance Car Insurance Discounts

Esurance offers multiple discounts, but their availability varies by state. These include:

  • Anti-Theft Discount – If your car has an anti-theft device installed, such as an alarm or an OnStar system, you can reduce your insurance costs. 
  • DriveSense Discount Use the DriveSense app to monitor your driving habits and qualify for premium discounts. 
  • Multiple Policy Discount Bundle your auto insurance with renter’s or homeowners insurance and save. 
  • Paid-in-Full Discount If you decide to pay your premiums in full instead of in monthly installments, you can qualify for an additional discount. 
  • PayPal Discount – If you have a PayPal account that you’ve used within the past 12 months, you can qualify for a discount on your premiums.

Factors That Affect Your Cost With Esurance

When determining your rates, Esurance considers several factors, including your age, gender, location, and driving record. As Esurance allows you to get a quote online without providing your Social Security or driver’s license numbers, we got a quote for a 30-year-old man living in Pennsylvania with a mid-sized sedan.

We requested a policy with $100,000/$300,000 in personal liability coverage, $25,000 medical coverage, $100,000 property damage, and $25,000/$50,000 in uninsured/underinsured motorist protection with a $500 deductible. The cost if paid in full was $1,517, which is slightly more expensive than the industry-wide average cost of $1,251 for the same coverage amounts.

Esurance Car Insurance Availability

Esurance is licensed to issue car insurance to residents in 43 states. It is not licensed in Alaska, Delaware, Hawaii, Montana, New Hampshire, Vermont, or Wyoming.

Esurance Customer Service

You can reach Esurance’s customer service team by sending a secure message on its website or calling 800-378-7262. Its customer support line is staffed seven days a week from 6 a.m. until 12 a.m. CT.

Esurance performed poorly in the J.D. Power 2019 U.S. Auto Claims Satisfaction Study. In the study, which ranked companies based on their insurance options, pricing, customer interactions, and communication, Esurance was 22nd out of 25 companies. Its rating was well below the industry average.

AM Best is the credit rating agency that issues opinions on insurance companies’ financial stability. In 2019 AM Best affirmed the Financial Strength Rating of A+ (Superior) for Allstate and its subsidiaries, including Esurance.

Complaint Index

The National Association of Insurance Commissioners (NAIC) releases company complaint ratios each year, a measure of how many complaints companies received relative to their share of the insurance market. The industry average is 1.0. A ratio above 1.0 means the company received more complaints than expected for its size, while a ratio below 1.0 means the reverse.

In 2019 Esurance’s overall complaint ratio was 3.19, more than three times as high as expected in the market, although its ratio just for private passenger auto insurance was only 1.47. Most complaints involved how claims were handled, including delays in claims processing and unsatisfactory settlements.

Complaints

For the past three years Esurance’s overall complaint ratios have been much higher than is typical for its market share, indicating that it receives many more complaints from customers than its similarly sized competitors.

Other Insurance Provided by Esurance

Esurance also offers:

How to Make a Car Insurance Claim With Esurance

Esurance allows you to file a claim online or through its mobile app. You can also use the app to submit photos of the damage to speed up the claims process. Esurance said that many customers who take advantage of the photo-claims process get their claims settled more quickly and receive their payments in as little as one day.

When you file your claim, be sure to include the date and time of the incident, the other party’s insurance and contact information, and the police report number, if applicable. Esurance will contact you about next steps so you can get back on the road quickly.

Esurance Car Insurance Cancellation Policy

You’ll have to pay a cancellation fee if you decide to terminate your Esurance policy before its expiration date. The fee is either 10% of your remaining premium balance or a flat fee ranging from $30 to $50.

To cancel your policy, call 800-378-7262. Make sure you have your policy number and intended cancellation day ready and ask the representative to send you a confirmation email for your records.

Get an Esurance Insurance Quote

You can get a quote from Esurance online or you can call 800-378-7262 and get a quote over the phone. While some companies require you to submit sensitive information, such as your Social Security and driver’s license numbers, to get a quote, those fields are optional with Esurance. You only need to provide the following information about you and your car:

  • Name
  • Address
  • Birthday
  • Gender
  • Marital Status
  • Education Level
  • Year, Make, and Model
  • Financing Information
  • Estimated Annual Mileage
  • Driving Record

Compare Other Car Insurance Reviews

Because Esurance sells directly to consumers, it’s a good choice if you need insurance quickly and want to purchase it online. Also, drivers who switch to Esurance and qualify for its discounts could save hundreds on their annual premiums.

For customers with more-specialized insurance needs, such as those with antique vehicles or who want in-person help from an insurance agent, you’ll need to get insurance from another car insurance company. Amica Mutual, Country Financial, Erie Insurance, Geico, and State Farm are top-ranked companies that may offer more options and a more personalized touch.

Verdict

For cost-conscious drivers who want a simple policy they can purchase quickly, Esurance can be a useful option. You can get a quote and purchase policies online, and the company offers multiple discounts to reduce your insurance premiums.

However, Esurance isn’t available in every state, and its customer service rankings are lower than average. If you’re looking for an insurance company that offers more-personalized assistance, you’ll have to find another insurer.

Methodology

Investopedia is dedicated to furnishing consumers with unbiased, comprehensive reviews of car insurance providers. We reviewed each insurance provider’s coverage options, available discounts, customer services, and satisfaction ratings to ensure that our content helps users make the right insurance decision for their needs.

Article Sources

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  1. National Association of Insurance Commissioners. "Esurance Insurance Company Complaint Index." Accessed Oct. 7, 2020.

  2. Insurance Information Institute. "Facts and Statistics: Auto Insurance." Accessed Oct. 7, 2020.

  3. J.D. Power. "Auto Insurance Claims Satisfaction Reaches Record High as Carriers Refine Time-Consuming Processes, J.D. Power Finds." Accessed Oct. 7, 2020.

  4. S&P Global Market Intelligence. "Insurance Ratings Actions: A.M. Best Affirms Allstate; Fitch Affirms Allianz." Accessed Oct. 7, 2020.

  5. National Association of Insurance Commissioners. "Esurance Insurance Company Complaint Code." Accessed Oct. 7, 2020.