Established in 1999, Esurance is a newer insurance company and one of the first to sell policies online. Now they are known for their fully online tools and services to purchase and file claims. The company’s poor customer reviews are alarming.
Allstate purchased Esurance in 2011 but announced in a December 2019 press release, “the Esurance brand will be phased out in 2020.” NextAdvisor reached out to an Esurance sales representative and learned new policies are still being issued today. An Allstate media representative, William Miller, confirmed new Esurance policies will continue to be issued, and “if someone purchases an Esurance policy online, it is on Esurance paper.” Miller wouldn’t elaborate further on when the phase-out was taking place or what will happen to existing policyholders.
On the Allstate Q1 earnings call in May, Allstate clarified it has not completely shut down the Esurance brand but redirected its budget to Allstate operations. You can still buy an Esurance policy, but as new technology systems get upgraded across states, “we will shut down the Esurance system, and then we will stop selling products under the Esurance name.”
It’s unknown when the phase-out of Esurance will take place and how that will affect policyholders when that happens. If you choose to purchase Esurance products, this is fair warning there is a big question mark to the fate of your policy.
Until then, here’s a review of its current products.
Esurance Auto Insurance
Esurance offers access to a range of auto insurance coverage. What sets this insurer apart from others who offer auto coverage is its digital online platform, where customers file claims online or via app.
Types of Coverage
- Collision coverage
- Comprehensive coverage
- Emergency roadside assistance coverage
- Rental car coverage
- Loan/lease gap coverage
- Medical payments coverage
- Personal injury protection coverage
- Bodily injury liability coverage
- Property damage liability coverage
- Uninsured motorist bodily injury liability
- Underinsured motorist bodily injury liability
- Uninsured/underinsured motorist property damage
- Rideshare coverage
Cost of Esurance Auto Insurance
Bankrate reports the average Esurance auto policy is a few hundred dollars less than the average Progressive policy, one of the cheaper brands averaging $1,509 per year.
Esurance Auto Insurance Discounts
- Switch & Save – Esurance claims drivers who switch from another insurance carrier to Esurance can save an average of $462.
- DriveSense – Esurance customers get an instant discount just for downloading the free DriveSense app and signing up.
- Bundle – Customers can get a discount by bundling renters and auto insurance policies with Esurance.
Esurance Home Insurance
Esurance homeowners insurance offers protection from weather-related home damage as well as theft and vandalism. You can purchase additional coverage to cover the cost of medical care if someone is injured at your property.
Types of Coverage
Homeowners insurance through Esurance protects your home and other structures, like a garage, from damage caused by:
- Fires, lightning, or explosions
- Wind
- Falling objects
- Heavy snow, ice, or sleet
- Vehicles crashing into your home
- Theft
- Vandalism
There’s also the option to add coverage for:
- Personal possessions (such as furniture or electronics)
- Collectibles such as artwork
- Coverage of a guest’s medical bills if they’re injured at your covered property
Cost of Esurance Home Insurance
The national average homeowner’s premium for a $250,000 dwelling is $1,312, according to the latest data from Bankrate. We were not able to find average pricing for Esurance homeowner’s policies. Contact the company for a quote.
Esurance Home Insurance Discounts
- Multi-policy discounts: You can save when you bundle a home and auto insurance policy with Esurance.
Esurance Insurance Ratings, Customer Satisfaction, and Complaints
Esurance is financially stable with an A.M. Best rating of A+, which indicates that the insurer will be able to cover claims for its customers without hardship. However, the company receives a complaint index score of 3.94 from the NAIC (National Association of Insurance Commissioners) for its home insurance products. This is almost four times the average number of complaints compared to its competitors.
The NAIC reports an above-average number of complaints about its auto policies, scoring 1.21 (based on an index of 1.00). The NAIC reported the top two complaints in 2020 were delays in claim handling and unsatisfactory settlement claims.
Esurance Auto Insurance
J.D. Power: 871/1,000) Industry Average: 872/1,000
NAIC: 1.21/1.00 (Above Average Complaints)
A.M. Best: A+
Esurance Home Insurance
J.D. Power: Not rated.
NAIC: 3.94/1.00 (More than triple the average complaints)
A.M. Best: A+
Esurance Pros and Cons
Esurance delivers on its promise of fast and easy with an online quote, managing your policy online, and using their app. If your auto accident claim is eligible for fast processing (which isn’t an option in every state), you could see the money as soon as the next business day. Customers who want a fully online insurance experience and lower rates will like Esurance.
Esurance’s “well-working website and great online presence” make transactions quicker than its competitors, says Patrick Peterson, writer/editor at AutoDetective, an online car comparison and auto content site.
However, the downsides are steep. Most insurance providers do not charge cancellation fees when terminating during the coverage period. Esurance is “notorious” for charging cancellation fees to its customers, says Peterson.
The brand doesn’t offer a lot of discounts. And its customers tend to be dissatisfied, as NAIC’s complaint index score reveals. When claims handling does go wrong, there’s no way you can talk to a person since there are no physical agents.
Another important takeaway is that the Esurance brand is eventually phasing out entirely. This means you could be left shopping for a new insurer or switched to Allstate mid-policy.
Pros
Easy to manage policies online or via the app
Fast claims processing for most customers
Backing from parent company Allstate
Cons
Close to four times the expected number of customer complaints about home insurance
Higher than average complaints about auto insurance
Charges cancellation fees
No physical agents
Few discounts
Does not offer life insurance
The Esurance brand is being phased out
Other Policies Offered by Esurance
- Renters
- Car
- Motorcycle
Bottom Line
The company is a good pick for customers who want to manage their policy and file claims from a mobile device. But between the cancellation fees, high frequency of customer complaints, and the brand’s pending retirement, there are compelling reasons to avoid Esurance.
Frequently Asked Questions
Are Esurance and Allstate the same?
Allstate owns Esurance, but there are differences between the brands. Allstate offers full-service coverage with physical agents handling relationships, while Esurance caters to digital insurance shoppers who want to do everything from their mobile device.
Is Esurance a good insurance company?
It depends. Esurance is a financially stable insurance company with an A+ rating from A.M. Best. However, customer complaints are higher than the industry average, suggesting that many customers are dissatisfied with Esurance.
Is Esurance going out of business?
In 2019, parent company Allstate announced plans to retire Esurance; however, the brand is still selling coverage.
