Esurance Auto Insurance Review
Last Updated on January 8, 2022
Esurance is a San Francisco-based insurance company founded in 1999. Now a subsidiary of Allstate, Esurance continues to sell car insurance in 43 states.
In 2020, Allstate announced plans to close down Esurance, consolidating all policyholders within the Allstate umbrella. Although Esurance remains a separate entity today, the company’s products, services, and customers are increasingly being moved over to Allstate.
Types of Auto Insurance Coverage Offered by Esurance
Esurance offers a range of car insurance policies and products. Drivers can buy minimum liability insurance or full coverage car insurance through Esurance in 43 states. Some of the car insurance coverage options available through Esurance include:
Liability Coverage: Most states require bodily injury liability coverage and property damage liability coverage. Esurance offers liability coverage in every state. You can meet minimum state insurance requirements with Esurance or expand coverage for added peace of mind.
Collision Coverage: Esurance’s collision coverage covers the cost of repairing or replacing your own vehicle after an accident involving another vehicle. If you were at fault for the accident, then your Esurance insurance policy compensates you for the cost of repairing or replacing your vehicle.
Comprehensive Coverage: Comprehensive coverage covers damage to your vehicle that occurs outside of accidents. It can cover fire damage, theft, vandalism, hail damage, collisions with animals, and other circumstances. Esurance offers comprehensive coverage in every state.
Medical Payments Coverage: Medical payments coverage, also known as med pay, covers medical bills for you and the passengers in your vehicle if you are injured in an accident. It doesn’t matter if you were at fault for the accident or not.
Personal Injury Protection Coverage: Esurance offers personal injury protection (PIP) coverage to cover damaged property, medical care, and lost wages for other drivers and passengers if you are found at fault in an accident.
Uninsured and Underinsured Motorist Coverage: Nearly 1 in 7 drivers nationwide has no insurance. Millions of more drivers are uninsured. Some states require drivers to carry uninsured and underinsured motorist coverage. Esurance offers this coverage in most states, including uninsured/underinsured motorist bodily injury coverage and uninsured/underinsured motorist property damage coverage.
Emergency Roadside Assistance Coverage: Esurance offers emergency roadside assistance coverage, also known as towing and labor coverage. If your car breaks down or if you are stranded, then Esurance may cover some of the costs of the incident. Esurance’s emergency roadside assistance coverage covers up to $75 per incident. It can cover fuel deliveries, spare tire changes, vehicle towing, and similar costs.
Rental Car Coverage: Esurance offers rental car coverage that reimburses you for the cost of a rental car, assuming your insured vehicle is in the shop or unavailable after an accident. You must have full coverage car insurance (including comprehensive and collision coverage) on your policy to add rental car coverage. Esurance offers additional coverage called CarMatch Rental Coverage in some states, which covers the cost of renting a vehicle similar in size and body type to your normal ride.
Loan/Lease Gap Coverage: Some insurers offer loan/lease gap coverage, while others do not. This coverage covers the ‘gap’ in the value of your vehicle and the amount remaining on your loan or lease. If you opt for this coverage, then Esurance will pay up to 25% more than your car’s actual cash value to help you take care of a loan or lease.
What Makes Esurance’s Auto Insurance Unique?
Esurance, like other large insurers, has similar offerings to other insurance companies. However, the company also has several features that make it unique, including:
DriveSense: Esurance has a driver tracking program called DriveSense. You receive a discount just for signing up for the program. With DriveSense, you install a mobile app, and the app tracks your driving behavior. Esurance uses this information to provide customized rates. The app analyzes your braking habits, acceleration habits, weekly mileage, and more. You must log at least 50 trips for each term to get a DriveSense discount. DriveSense is available in most states, but not all states. Esurance does not disclose the average savings or minimum savings with DriveSense, claiming it varies widely between drivers.
Cost Savings: According to Esurance.com, drivers who switch to Esurance save $462, on average. Since launching in 1999, the company has emphasized cheaper car insurance policies than its competitors by maintaining lower overhead expenses. Esurance was one of the first with major online operations, for example, and the company continues to offer discount rates today.
Amenities of a Major Insurer: Esurance is not one of the top ten largest insurance companies in the United States. However, the company is a subsidiary of Allstate, which is one of the largest insurance companies in America. When you get car insurance through Esurance, you get the benefits of Esurance with the amenities and financial strength of a larger insurer.
Excellent Mobile App: Esurance has emphasized a strong digital presence since its launch. All insurance companies now have well-functioning websites, but Esurance is well-rated for having one of the best mobile apps in the industry. Generally, customers are happy with their Esurance mobile app experience.
Multiple Insurance Products: Esurance offers four main types of insurance products, including car, renters, homeowners, and motorcycle insurance.
Additional Insurance Products Through Allstate: As Esurance becomes increasingly intertwined with Allstate, it’s easier for policyholders to buy Allstate insurance products through Esurance. If you like Allstate’s insurance products but want to continue using Esurance for your car insurance, then that is increasingly becoming easier.
No Accident Forgiveness: Most major insurers offer accident forgiveness. You pay a few extra dollars per month to add accident forgiveness to your policy. However, Esurance does not offer accident forgiveness in any state.
Usage-Based Insurance: Esurance offers usage-based insurance in 37 states. Some insurance companies offer usage-based insurance, allowing drivers to pay for the exact time they spend on the road. Other insurance companies do not. Esurance is one of the few major insurance companies with a strong usage-based insurance program.
How Much Are Esurance’s Insurance Rates?
When Esurance launched in 1999, it had a reputation for undercutting many of its larger competitors. Esurance used the internet to lower overhead expenses, allowing it to charge cheaper rates than its competitors.
Today, things have changed. The insurance landscape is more competitive. Allstate purchased Esurance in 2011, and Esurance’s rates are now similar – and often much higher – than competing insurance companies in the United States.
The average Esurance policyholder in America pays around $1,443 per year for full coverage car insurance, which is approximately equal to the nationwide average.
Esurance Auto Insurance Discounts
Esurance offers dozens of discounts for lowering the cost of car insurance. By taking advantage of the following discounts, drivers could save hundreds per year on their Esurance policy:
DriveSense Discount: Drivers receive a discount just for signing up for the DriveSense telematics program. Safe drivers or low mileage drivers can receive further discounts after recording 50 trips through the DriveSense mobile app. Although Esurance does not disclose minimum or maximum DriveSense savings upfront, most drivers report saving 5% for signing up for DriveSense, with some drivers reporting savings of 15% to 20% through the app.
Good Driver Discounts: Good drivers can save up to 40% by getting insurance through Esurance. Like all insurance companies, Esurance puts a heavy emphasis on driving history. If you have a verified safe driving history with Esurance, then you may be able to save. A safe driving history means no at-fault accidents, DUI or DWI violations, or other serious claims from the last five years.
Vehicle Safety Feature Discounts: If your vehicle has safety features beyond standard features, then you could save up to 30% through Esurance. Esurance may reward drivers for safety features like strong crash safety ratings, strong rollover ratings, and passenger airbags.
Good Student Discounts: If you have a full-time student on your policy with a B average or higher, then you may qualify for a discount.
Paid in Full Discounts: Drivers who pay their premiums in full upfront (in six-month or 12-month increments) may receive a discount over those who pay monthly.
Multi-Policy Discount: Drivers with multiple policies with Esurance (including home and auto insurance policies) will receive a multi-policy discount across all policies.
Multi-Vehicle Discount: If you insure multiple vehicles with Esurance, then you receive a discount across all vehicles.
Fast 5 Discount: Esurance originally offered a discount called the Fast 5 discount, allowing you to request a quote online and get 5% off premiums for your first time. However, Esurance appears to have phased out this discount as the company becomes increasingly integrated with Allstate.
Home Ownership Discount: Policyholders who own a home may get a discount through Esurance, even if they don’t insure that home with Esurance.
Defensive Driving Course Discount: Approved drivers over 50 who complete a defensive driving course may receive a discount on car insurance. A growing number of states require insurance companies to provide this discount to older drivers instead of automatically raising rates with age.
Pros and Cons of Esurance
Esurance was founded with the goal of offering effective car insurance at a reasonable rate. Back in 1999, the company used the newfound power of the internet to reduce its overhead expenses, allowing Esurance to undercut competitors. Today, Esurance offers few advantages over its competitors, and the company will soon be fully integrated with parent company Allstate.
Some of the pros and cons of buying car insurance through Esurance include:
- Financial stability and amenities of a large parent company (Esurance is a subsidiary of Allstate)
- Wide range of insurance products and discount options
- Pricing is competitive in some states
- Pay-per-use car insurance and other unique insurance products
- Strong ratings for customer service and claims satisfaction
- User-friendly mobile app and website
- Higher than average NAIC complaints index
- In 2020, Allstate announced plans to end Esurance and fully integrate all policyholders into the Allstate umbrella, which means Esurance won’t be around much longer
- Poor pricing competitiveness in some subregions and states
- Not available in all states
Esurance Reviews: What Do Customers Have to Say?
Generally, customers seem happy with their Esurance experience, giving the company average scores for customer service and claims satisfaction. However, Esurance has a higher complaint rating with the NAIC than average, indicating more customers complain about Esurance to regulators than normal.
According to A.M. Best, Esurance has one of the strongest financial strength ratings in the insurance industry. A.M. Best awarded Esurance an A+ rating. The organization analyzes insurance companies based on their liabilities and assets. An A+ rating is considered very strong.
Esurance is not large enough to be ranked by J.D. Power in all states and subregions. However, J.D. Power generally has good things to say about the company in subregions where Esurance is ranked. J.D. Power polls customers to compile its rankings, including customers who have recently filed a claim with Esurance.
In 2019, J.D. Power awarded Esurance its #1 ranking in customer satisfaction among auto insurers in California. Esurance outperformed the competition in overall customer satisfaction, scoring top marks in California. California is Esurance’s largest customer base. Esurance received an identical award in 2017, ranking as the #1 auto insurance company in California for customer satisfaction.
Esurance has an A- rating with the Better Business Bureau (BBB). The company has an average rating of 1.13 stars out of 5 on its BBB page, including 290+ customer complaints in the last three years. These numbers may sound bad – and they are. However, many insurers have similarly dismal ratings with the BBB, as few customers take the time to leave a BBB rating unless unsatisfied with a claim.
Esurance has above-average ratings on review aggregator websites. WalletHub, for example, scores the company 3.8 stars out of 5 based on 1,500 customer reviews from across the internet. Clearsurance has a similar ranking, giving the company 4.0 stars out of 5 based on 1,500+ reviews. Most customers seem happy with the overall Esurance experience, although some customers are unsatisfied after making a claim with Esurance – similar to the reviews found online with any insurance company.
Final Word on Esurance
Esurance launched in 1999 as a digital disruptor to the insurance space. In 2011, Allstate purchased Esurance. Although the company continues to exist a decade later, Allstate announced plans to phase out Esurance in 2020.
Today, Esurance remains a separate entity from Allstate, and you can continue to buy car insurance through Esurance.com. However, the company is quickly becoming integrated with Allstate.
Nevertheless, Esurance has strong ratings for customer service and pricing. Although the company has minor complaints about claims satisfaction, Esurance (and its parent company, Allstate), continue to be strong options for car insurance across the United States.
|Esurance Contact Information|
|Customer Service Phone Number||1-800-378-7262|
|Claims Phone Number||1-800-378-7262|
|States Served||All 50 States|