Esurance Life Insurance: Good Option Or Not?

Esurance is an online insurance company that offers a range of insurance products, including life insurance. It was one of the first companies to sell insurance policies to consumers via the internet, providing a convenient and innovative service. Esurance is now owned by Allstate, a well-known insurance provider, and has over 3000 associates across the US. The company offers quotes on term life insurance coverage, which provides death benefit protection without any cash value or savings build-up. Esurance has received mixed reviews, with some customers praising its easy online processes and reasonable quotes, while others have complained about delayed claims payouts and unexpected rate increases. Overall, Esurance can be a good option for those seeking a tech-savvy and self-sufficient way to manage their insurance policies, but those wanting a more personalised experience may look elsewhere.

Esurance's history and acquisition by Allstate

Esurance was founded in 1999 by Jean-Bernard Duler, Jeffrey L. Goodman, Huyen Bui, David Griffin, and Charles Wallace. It became one of the first insurance companies to sell policies directly to consumers over the internet, instead of using in-person meetings or phone calls. In 2000, Esurance was acquired by Folksamerica Holding Company, a subsidiary of White Mountains Insurance Group. By that time, the company had expanded to offering policies in 24 states, but had also just laid off staff and was actively soliciting a purchaser.

In 2004, Esurance began to offer multi-car discount packages to same-sex couples, by offering multi-car discounts to any group of people that lived together. The company claims to be one of the first insurers to have offered such packages to same-sex couples.

In May 2011, Allstate announced that it was purchasing Esurance and rate-comparison site Answer Financial for approximately $1 billion. At the time, Esurance was selling policies in 30 states and was in the midst of a five-year growth period that saw them double the number of policies in force. Allstate's acquisition of Esurance was completed in October of that year. The combined company became the sixth-largest provider of auto insurance policies.

In December 2019, Allstate announced that it would phase out Esurance in 2020 in order to streamline business operations. In March 2023, Esurance stopped issuing new insurance policies. Drivers looking for car insurance quotes on the Esurance website are redirected to Allstate's quoting system. As existing Esurance policies come up for renewal, current customers will likely be offered Allstate, National General or Encompass policies, depending on various eligibility criteria.

Esurance's financial strength and ability to pay out claims

Esurance is backed by Allstate, which is the oldest publicly held personal lines insurance carrier in the United States. Allstate has over 80 years of experience in working with policyholders to protect assets, wealth, and other things of importance. It is a Fortune 100 company, with assets that exceed $130 billion. Due to Allstate's financial strength, Esurance has earned high ratings from insurer rating agencies, including an A+ from A.M. Best Company.

Esurance prides itself on its customer service, which includes the timely payment of policyholder claims. The company offers 24/7 claims service from dedicated reps, and in most cases, it takes ten days or less to settle vehicle damage claims. Esurance has also earned recognition and accolades for its services, including the J.D. Power Award for Highest Customer Satisfaction Among Auto Insurers in California.

Esurance has a financial strength rating of A+ (Excellent) from AM Best due to its parent company Allstate, but it has more complaints than expected logged with the NAIC. However, Esurance is still considered to have good financial strength and the ability to pay out claims. Claims are still processed by Esurance without much difference in service, and the company has an AM Best financial strength rating of A+ (Superior).

Pros and cons of Esurance's car insurance

Esurance is a digital insurance company that is now part of Allstate. While it no longer issues new policies, existing policies are still serviced by Esurance. Here are some pros and cons of Esurance car insurance:

Pros

• Highly-rated mobile app for policy management
• Easy to get a quote and buy coverage online
• Backed by Allstate, a highly-rated insurer

Cons

• No longer writing new business
• Few add-on coverage types available
• Fewer advertised discounts than some competitors
• High NAIC Complaint Indexes
• Limited options for customizing policies
• High average insurance costs

Esurance's customer satisfaction and complaints

Esurance has received mixed reviews from its customers. While some customers have praised the company for its good customer service, others have criticised it for its poor handling of claims and unexpected fees/rate increases.

Esurance has a rating of 3.0/5 from WalletHub's editors, based on sample insurance quotes, customer reviews, and ratings from organisations such as J.D. Power and the Better Business Bureau (BBB). WalletHub's editors gave Esurance a rating of 3.0/5 because of its competitive rates, generous list of discounts, and easy-to-navigate website. However, they noted that drivers who want a longer list of coverage options and a more personalised shopping experience might want to look elsewhere.

Esurance has received more complaints than the average car insurance provider. Delayed claims payouts and unexpected fees/rate increases are among the biggest complaints reported by customers. According to data from the National Association of Insurance Commissioners (NAIC), Esurance has a complaint index of 3.42, which indicates that the company has received significantly more complaints than the average car insurance provider.

Esurance is not included in recent J.D. Power studies, but its parent company, Allstate, is ranked above average in the 2023 Auto Claims Satisfaction Study with a score of 882. In the more general 2023 Auto Insurance Study, Allstate's ranking ranges widely depending on the region.

Esurance has a financial strength rating of A+ (Excellent) from AM Best due to its parent company Allstate, but it has more complaints than expected logged with the NAIC.

Esurance has received positive reviews from some customers who have praised the company for its easy online quote and buying process, reasonable rates, and good customer service. However, other customers have complained about unexpected rate increases, poor customer service, and difficulty in reaching adjusters.

Overall, Esurance has received mixed reviews from its customers, with some praising the company for its good customer service and reasonable rates, while others have criticised it for its poor handling of claims, unexpected fees, and rate increases.

Esurance's home insurance review

Esurance is a digital insurance company that offers homeowners insurance in 31 states. The company is backed by Allstate and is ideal for customers who want to manage their policies online or through a mobile app. Esurance provides all standard coverage types, including dwelling, personal property, other structures, and liability, with the option to add valuable items coverage. However, the company has limited options for customizing policies and does not offer online quotes for home insurance. Here is a more detailed review of Esurance's home insurance offerings.

Pros of Esurance Home Insurance

• Easy policy management and claims filing through the mobile app.
• Standard policies include water backup coverage and fire department charges coverage, which are not typically offered by many insurers.
• Optional coverage includes building codes coverage, increased building structure coverage, identity theft coverage, fair rental income coverage, home daycare coverage, and extended premises coverage.

Cons of Esurance Home Insurance

• No online quotes available for home insurance; customers must call an agent to get a quote.
• Limited options for customizing policies.
• No advertised discounts for home insurance.
• Lack of local offices and 24/7 customer support.

Esurance has received mixed customer satisfaction ratings. While some customers praise the company for its good customer service and low prices, others have complained about delayed claims payouts, unexpected fees, and rate increases. The company has also received more complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC).

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