In today’s connected world, insurance customers want products that are linked to the Internet, their preferred method of communicating and receiving information. And many insurers are now offering new digital technologies to meet the needs of today’s consumer. So whether you're looking for health, life, car or home insurance, there are a handful of companies that can help you enroll easily through an app or website. Here are some of the best digital insurance options to buy now.
Best for Home Insurance: Lemonade
Lemonade is a digital insurer founded in 2015 offering homeowners, condo, and renters insurance to residents of over 25 states. Customers can buy insurance directly online without the use of an agent. Lemonade is not your typical insurance company. The company keeps 20 percent of your paid premium to pay and claims and pay for other operating expenses. Any unclaimed premium can go to a nonprofit of your choice. The company uses artificial intelligence in the form of chatbots to handle claims and provide insurance policies. The app “A.I. Jim” handles policyholder claims, and while you are filing a claim, the app reviews and processes, cross-references against the policy and either approves/disapproves a claim. Policies can be purchased and claims paid often within a few minutes or less. Lemonade has an “A” financial strength rating from insurance rating organization, Demotech.
Basic policy options include:
- Replacement value
- Personal property $10K-$250K
- Deductibles $250-$2,500
- Med Pay $1K-$5K
- Personal Liability $100K-$500K
- Off-premises coverage
- Loss of use $3K-$200K
For an additional premium, you can add coverage for:
- Jewelry, fine art, electronics
- Personal high-value scheduled up to $50K
Best Digital Insurer for Auto Insurance Quotes: Insurify
Digital insurer Insurify uses artificial intelligence to provide you an auto insurance quote simply by texting a copy of your car’s license plate. The company launched in 2016 and uses a virtual insurance agency called “Evia.” Evia stands for Expert Virtual Insurance Agent. For those who do not have a picture of a license plate to text, a quote can also be obtained by entering basic information on the website such as make and model of the vehicle and driver information. The artificial intelligence aspect of Evia gathers driving data and driving record information, which saves you time in obtaining an accurate auto insurance quote.
Insurify provides auto insurance quotes through partnerships with more than 80 auto insurance partner companies, including top-rated auto insurers such as Esurance, Farmers, AIG, Progressive, Safeco, Liberty Mutual, Nationwide and more. The company has its own software called RateRank that matches drivers with the best options for auto insurance based on the user’s unique risk profile. The software provides you with the best options for auto insurance. The Evia application is available in 30 U.S. states with plans for future expansion.
Best for Autos with Low Mileage: Metromile
Metromile is a digital insurer founded in 2011 offering auto insurance to low mileage drivers through a telematics device installed on your vehicle that measures the miles you drive. Coverage is available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington. The device you install in your car is called the Metromile Pulse and could potentially save you as much as $500 per year on auto insurance. Drivers with 10,000 miles or less could receive substantial saving on auto insurance premiums. Metromile also offers a smart driving app that offers features for trip optimization, stolen vehicle, car health diagnostics and street sweeping alerts to help you avoid tickets.
Best for Safe Drivers: Root
If you have not yet heard of Root, it is a relative newcomer to auto insurance. The auto app used by Root can save safe drivers as much as 52 percent on auto insurance rates. The app tracks your driving habits such as hard braking, mileage, hard turn and more to calculate your insurance rate. You can also purchase an auto insurance policy, get ID cards and customize coverage through the app. There are no agents, everything is done through the app. Root car insurance is currently available in 19 states, with plans to expand coverage to other states soon. The Root insurance application is supported by iPhones (5s and above) and many Android phones. You can find the app on Google Play Store.
What is different about Root insurance is that the biggest factor in determining the price you pay for auto insurance is your driving ability. Not everyone can qualify for coverage, only the best drivers. It takes two to three weeks of test driving, and if you qualify, you’ll get a quote based on your driving ability. Quotes are not available to drivers unless they take a test drive with the app. The company claims its algorithms are so complex — they can determine if you are driving, are a passenger, walking, riding a bike or even taking a subway when your app is turned on and will only use the data collected from when you are actually driving your car to determine your quote.
Best Health Insurance Wellness Incentives: Oscar Health
Oscar Health Insurance began in 2012 and offers health insurance to residents of Arizona, California, Colorado, Florida, Georgia, Kansas, Michigan, Missouri, New York, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, and Virginia. Coverage may soon be available in other states. The Oscar app is downloadable and compatible with Android and iOS. The app offers 24/7 doctor-on-call services, free yoga classes and classes for expectant mothers. The company operates in partnership with Mount Sinai Health System.
With the app, to request a callback from an on-call doctor, you simply tap the app and can receive a callback from a doctor usually within minutes. The app can also send prescriptions to your pharmacy. Your Concierge Team includes a registered nurse and three care guides to provide health care and answer questions.
The company offers health insurance wellness incentives for being active, which is tracked using free wearables. There is also a cash incentive for getting your flu shot and some generic drugs are free. There are low-deductible options available. Oscar Insurance currently has a Better Business Bureau rating of “A-." There are tier plans that pay medical expenses ranging from 60 to 90 percent.
Best for Life Insurance: Ladder Insurance
Ladder Insurance is a digital insurance agency that has partnered with Fidelity Security Life to offer life insurance without the use of agents directly to consumers online without charging any annual policy fees. The online process of purchasing a policy can be done in as little as five minutes and you can sign any documents necessary for coverage with an E-signature.
As of 2019, the company has an “A“ AM Best rating. Policyholders can purchase term life insurance coverage in varying amounts up to $8,000,000 in coverage. What the company offers is simple and fast coverage for almost any amount of coverage. However, there are few policy riders (extra coverage options for an additional premium) available.
The company offers policyholders the unique ability to ladder up (increase coverage) or ladder down (decrease coverage) based on certain life events (marriages, births, purchase of a new home, etc.) or other changes in circumstances. If you decide to decrease your coverage, your premiums decrease by the same percentage as your coverage (for example, a 10 percent decrease in coverage means a 10 percent decrease in your policy premium). There is no charge for either increasing or decreasing coverage.
What Is Digital Insurance?
Digital insurance is sold online by companies that rely on digital technology for business operations, for product and service sales, and for customer interactions. Different types of insurance, including health, life, home, auto, renters, and pet insurance, can all be digital.
Your transaction will be completed online, and you can shop around for providers, get quotes, and compare digital insurance providers from your mobile phone or your computer.
How Much Does Digital Insurance Cost?
Digital insurance costs can vary greatly because this is such a broad type of insurance. It encompasses any insurance that’s sold digitally. Renters insurance can be as inexpensive as $15 per month, while health insurance or home insurance coverage would be significantly more expensive.
Your costs will typically be broken down into your deductible and monthly premiums.
Is Digital Insurance Worth the Cost?
The internet gives you the ability to price shop for whatever type of insurance you’re in the market for without leaving the comfort of your home. You can easily compare policies and choose the features you want for the best price on your computer or phone. Not only will the policy most likely cost you less when you purchase it, but you won’t spend hours determining the best policy for your needs, and time is money.
Digital insurance providers are typically able to offer lower prices because their overhead is less. They don’t have to pay rent for a storefront or utilities, or purchase and maintain a brick-and-mortar business location. This type of insurance can be worth the cost because you know what you’re paying for, and you aren’t paying a premium for a company’s expensive operating costs.
How We Chose the Best Digital Insurance Companies
We chose the best digital insurance companies based on their customer satisfaction ratings and reviews, as well as financial strength ratings, the types of insurance they offer, and coverage areas. We chose the top companies after researching and reviewing the most popular in the sector.
AM Best. "AM Best Upgrades Credit Ratings of Fidelity Security Life Insurance Company and Its Subsidiary." Accessed Oct. 27, 2020.