Esurance: An Overview
Esurance is a subsidiary company of Allstate and has made a name for itself as a top provider of online insurance. Esurance was founded in 1999 as a discount auto insurer that sells insurance directly to consumers on its website. Esurance has an “A+” financial stability rating from A.M. Best. In 2019 and was recognized by J.D. Power & Associates as the #1 insurance company in customer satisfaction for auto insurers in California. The areas judged in the survey included interaction, policy offerings, price, the billing process, policy information, and claims service. Esurance also received the same J.D. Power & Associates award in 2017. Esurance offers insurance through 3,000 associates nationwide with access to coverage available to customers in 43 states.
The primary insurance products offered by Esurance are its car and homeowners insurance. However, they also have many other coverages available you might not have heard of including:
- Commercial auto
- Mexican auto
- Classic vehicle
- Boat/personal watercraft
- Travel trailer
- Golf care
- Travel insurance
Esurance also offers its customers a way to save on car insurance through its usage-based car insurance program, DriveSense. DriveSense is available to Esurance auto insurance customers by downloading the mobile app from the App Store or Google Play. Through DriveSense, drivers can save a percentage on their car insurance premium, and those with the safest driving habits will realize the greatest savings.
The driving metrics measured to determine the discount include mileage, speed, time of day you drive, acceleration and braking events.
Financial Results/Market Size
As a part of the Allstate family of insurance companies, the market share for Esurance is included in that of its parent company. The National Association of Insurance Commissioners (NAIC) 2018 Property & Casualty Market Share Report ranks Allstate fifth in total property & casualty direct written premiums in the U.S. with $33,251,175 in direct premiums written for a 4.88% market share.
Allstate’s investor relations report shows its total revenues increased to $11.1 billion in the second quarter of 2019 with a net income of $821 million. According to a 2011 interview with Thomas J. Wilson—CEO of The Allstate Corporation—Esurance is geared toward consumers who are more self-directed but still prefer a branded product. The parent company, Allstate, focuses on those customers who prefer face-to-face interaction with their insurance agent.
Reasons Consumers Choose Esurance
Those consumers preferring to purchase insurance online will find Esurance delivers in many areas including pricing, customer service, and financial stability. Esurance was one of the first companies to make a name for itself as a digital insurer, making its services available since 1999. If you are looking for a digital insurer, Esurance has more insurance products available that other digital insurers including Metromile, Root Insurance, and Lemonade.
Esurance has attractive discounts available. Many will be able to save even more (up to 30%) on auto insurance premiums by signing up for the usage-based car insurance program, DriveSense.
Customers can save on their insurance premiums with the multi-policy discount by bundling their home and auto insurance policies.
There are also discounts on auto insurance for car safety features including factory-installed airbags and automatic seatbelts, as well as an anti-theft installed feature discount and an anti-lock brakes discount. The safety features auto insurance discount can be as much 33% off certain coverages.
Esurance has a user-friendly website and a convenient mobile application where policyholders can make a payment, make updates to their policy and get proof of insurance. It is available through Google Play or by download on the App Store.
There are many good reasons to choose Esurance for your insurance company. However, if you prefer a personal insurance agent you can visit and consult with, you may be happier choosing a traditional insurance company since all of Esurance’s insurance products are sold directly to the consumer online.
As Esurance markets and sells insurance to consumers direct from its website, its main competitors include other insurers who also sell directly to consumers online with no brick-and-mortar locations. These include including MetroMile, Root Insurance, and Lemonade.
Esurance. "About Us." Accessed Dec. 11, 2019.
Esurance. "Rating and State Licenses." Accessed Dec. 11, 2019.
J.D. Power. "Auto Insurance Satisfaction Surges as Customers Adopt Direct-to-Consumer Models, J.D. Power Finds." Accessed Dec. 11, 2019.
J.D. Power. "Premium Increases Become Sticking Point for U.S. Auto Insurance Customers, J.D. Power Finds." Accessed Dec. 11, 2019.
Esurance. "Fast Facts." Accessed Dec. 11, 2019.
Esurance. "Insurance." Accessed Dec. 11, 2019.
Esurance. "DriveSense." Accessed Dec. 11, 2019.
National Association of Insurance Commissioners. "2018 Market Share Reports for Property/Casualty Groups and Companies By State and Countrywide." Page 5. Accessed Dec. 11, 2019.
The Allstate Corporation. "Second Quarter 2019 Earnings Presentation." Page 3. Accessed Dec. 11, 2019.
Insurance Journal. "Allstate Targets Online Insurance Sales; Buys Esurance, Answer Financial." Accessed Dec. 11, 2019.
Esurance. "Discounts." Accessed Dec. 11, 2019.
Esurance. "Mobile App." Accessed Dec. 11, 2019.