Esurance 2019 Auto Insurance Review: Rates, Claims Satisfaction, and Coverage

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Summary:  

Esurance Insurance Services, Inc., founded in 1999, is a direct seller of auto and property insurance available in 43 states across the country. The company became a subsidiary of AllState in 2011. Esurance does not have physical locations and sells its products online and over the phone. Its primary competitors are Geico and Progressive. If you like to shop and purchase insurance primarily online without going through an agent, you should do comparison shopping with these 3 providers. Esurance is best for people who want to handle their own car insurance through an online platform and who are not looking for the lowest price on car insurance.

Pros:  

  • Esurance offers more discounts than Geico, one of its main competitors.  However, these discounts may not help to reduce Esurance’s rates enough to be competitive with the company.
  • Esurance also offers property insurance, life insurance, health insurance, umbrella, business insurance, pet insurance, and flood insurance.
  • Esurance has an easy to use online platform from which you can purchase and manage your auto insurance policy.

Cons:

  • Esurance has more than the average number of complaints for its home insurance than other insurance companies of its size.
  • Esurance is not available in Vermont, New Hampshire, Delaware, Alaska, Hawaii, Montana, or Wyoming.
  • Esurance’s rates are on the high side, especially when compared to Geico, one of its leading competitors.  This is especially true for young drivers.
  • According to a J.D. Power survey, Esurance’s claims satisfaction rating is below the national average and near the bottom of the list.

Esurance sells auto insurance directly to the customer online and over the phone. It also sells a variety of other insurance types.  Esurance is best for consumers who wish to manage their own auto insurance online and do not require much interaction with an agent. It is not, however, good for consumers who are looking for the best rates.  Young drivers especially should avoid Esurance.

The Value Equation ($$$)

The cost of a car insurance premium is one of the primary determining factors for consumers when they are shopping for auto insurance. Esurance bases your rates on many of the same criteria as its leading competitors such as Geico and Progressive. These factors include your age, location, driving history, coverage options, type of vehicle, and gender.

To get a quote from Esurance, simply go to their website and input your zip code to get started.  You can even purchase the insurance online if you are satisfied with your quote.

Here’s a quick glimpse of how Esurance’s average premiums compare to two other national auto insurance providers, Geico and Progressive.

 EsuranceGEICOProgressive
18 year old Male (no accidents)$10,237$4,160$7,430
18 year old Female (no accidents)$8,301$4,754$8,590
40 year old married couple (no accidents)$3,902$1,648$3,083
40 year old married couple (One accident)$6,223$3,258$5,689

Esurance’s rates are actually significantly higher than Geico but they are comparable to Progressive.  Esurance is known for offering a lot of discounts; however, it is doubtful that this will help bring their rates below Geico.  Furthermore, Progressive offers discounts as well. Therefore, Esurance is not a good choice for consumers who are looking for the best rates on auto insurance.

Discounts

Esurance offers a number of discounts which customers may qualify for to lower their car insurance premiums.  They fall into three categories.

  • Policy Discounts – The company’s policy discounts include the Fast 5 discount, a multi-policy discount, a paid in full discount, a multi-car discount, a claim free discount, a homeowners discount, renters plus discount, emergency roadside assistance discount, and an online shopper discount.
  • Good Driver Discounts – The company’s good driver discounts include a discount for having a license for at least three years with no more than one point on your driving record; a DriveSense discount, a Good Student Discount, and a Defensive Driver Discount.
  • Car Safety Features Discounts – The car safety features discounts that are available include a safety device discount, anti-theft discount, and an anti-lock brake discount.  (In comparison, Progressive does not have discounts for vehicle safety features mentioned on its website.)

Like with other auto insurance companies, the discounts that you qualify for with Esurance are mostly determined when you obtain the policy. However, you can add discounts you become eligible for later to save on your rate. Discounts are determined by a variety of factors such as driving record and type of vehicle.  And just like with any other car insurance company, you must remain qualified for the discounts that you receive throughout the life of the policy to maintain the discount.

Claims Satisfaction

An automobile insurance company’s claims satisfaction rating is just as important as price when shopping for quality automobile insurance. Esurance’s claims satisfaction ratings are below the national industry average.

What is the average customer experience and satisfaction with Esurance?

Each year, J.D. Power surveys an estimated 10,000 customers who have filed a claim in the past six months.  Insurance providers are then ranked in a 1000-point scale based on the results of the survey. Esurance is ranked near the bottom of the list of auto insurers with a score of 852/1000.  The national industry average for car insurance providers is 861/1000. In comparison, Geico and Progressive, Esurance’s main competitors, scored 857/1000 and 849/1000 respectively. Thus, Esurance falls behind Geico in the area of claims satisfaction; however, it outranks Progressive in this same area.

How easy is it to file a claim with Esurance?

Coverage Options

Esurance offers a number of different coverage options for consumers to choose from.  These options include:

  • Collision
  • Comprehensive
  • Medical Payments
  • Personal Injury Protection Coverage
  • Liability Coverage
  • Uninsured/ Underinsured Motorist Coverage
  • Emergency Roadside Assistance
  • Rental Car Coverage
  • Gap Insurance

All of these coverages are also offered by Geico and Progressive except Gap Insurance which Geico does not offer.  Furthermore, Geico offers Rideshare Coverage for Uber and Lyft drivers which Esurance only offers to its customers in California.  (Progressive does not offer rideshare.)

Other Insurance

In addition to traditional auto insurance, Esurance also insures motorcycles, ATVs, classic cars, recreational vehicles, travel trailers, snowmobiles, scooters, golf carts, boats and segways.  Furthermore, Esurance insures commercial automobiles and sells auto insurance for driving in Mexico.

Esurance sells homeowners insurance, condo insurance, and renters insurance as well.  Moreover, Esurance sells flood insurance.

Esurance has a number of Business Insurance products available to consumers.  It offers a Business Owner Policy that can provide coverage for employee dishonesty, money and securities, computer fraud, utility services – direct damage, fire and theft reward.  Optional coverages available include employment practices liability, data compromise and identity recovery, and CyberOne. The company sells Basic, Standard, and Enhanced coverage packages for business.  

You can also purchase life insurance, health insurance, and pet insurance from Esurance.

Website Experience

Esurance is known to offer a very easy to use customer friendly website along with well-developed mobile apps for its customers.  On the website you can find out coverage and discounts options for auto insurance as well an information about the other insurance products the company sells. Furthermore, you can get a quote and even purchase auto insurance online. You can file and view your claim online as well. The website also includes a quote comparison feature to allow you to compare Esurance’s quote with that of other auto insurance companies. Furthermore, Esurance offers both an Esurance Mobile App and a DriveSense App.

The Bottom Line

  • Esurance is a direct insurance company that is owned by AllState and sells products in 43 states.  Its main competitors are Geico and Progressive. It has solid financial strength.
  • Consumers who want to purchase their insurance online without going through an agent should get quotes from Esurance together with its two major competitors who also offer online quotes, Geico and Progressive.
  • Esurance has a low claims satisfaction rating coupled with higher rates than its competitors.
  • Esurance’s rates are especially high for young drivers.
  • Esurance does sell a number of other insurance products such as property insurance, life insurance, business insurance, pet insurance, umbrella insurance, and health insurance.  Thus, this company can take care of all of your insurance needs.
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