Esurance, a subsidiary of Allstate, has been providing homeowners coverage and other insurance products since 1999 but will disappear as a brand in 2020. The company is online-focused, offering robust online quotes and digital tools. Esurance excels in areas such as its online resources and simple quote process, but falls behind its competitors when it comes to customer satisfaction. Although Esurance didn’t make the cut for our list of best homeowners insurance, its parent company Allstate did.
Esurance Home Insurance Overview
Esurance, an Allstate company, offers online-focused homeowners insurance for customers who prefer a quick and straightforward process. Esurance is a subsidiary of Allstate and holds an A- rating with the Better Business Bureau. According to YouGov, 28% of survey respondents have a good opinion of Esurance. However, the company also holds a high amount of complaints with the National Association of Insurance Commissioners (NAIC).
Esurance offers all the coverage you need, plus some extra helpful features. This makes the company appealing to a broad segment of customers.
It is worth noting that Allstate has announced it will be retiring the Esurance brand in 2020 and continuing to sell its products under the Allstate name.
PROS
CONS
Esurance Highlights
Methodology
We evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare Esurance with home insurance companies across the board, we calculate each Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
The Competition
| Company | Reviews.com Score | AM Best Financial Strength Rating | J.D. Power 2019 Score | NAIC Customer Complaints |
| Esurance | N/A** | A+ | N/A | More complaints than average |
| Geico | 2.75 | A++ | N/A | Fewer complaints than average |
| Allstate | 4 | A+ | 814 | Fewer complaints than average |
| Lemonade | N/A** | N/A | N/A | More complaints than average |
| Amica | 4.25 | A+ | 845 | Fewer complaints than average |
All information accurate as of October 7, 2020.
*J.D. Power 2020 Home Insurance Study, based on a 1,000-point scale.
**Some providers don’t have enough third-party ratings to calculate a score.
Esurance vs. Geico
Esurance and Geico both have a reputation for their online offerings. With easy-to-use websites, online educational resources, and intuitive mobile apps, the two companies make online insurance simple for customers.
Both companies also have their policies underwritten by other companies (Esurance does write some of its own), though Geico is more widely available. Geico, as a company, also boasts nearly half as many complaints as Esurance. In addition, it holds a slightly higher financial strength rating, with an A++ from AM Best.
Esurance vs. Allstate
Though Esurance and Allstate operate under two different brands and offer separate insurance policies, Allstate owns the Esurance brand. In many states, when you try to get a quote for home insurance from Esurance, you’ll be rerouted to the Allstate website. And by the end of 2020, Allstate is planning to retire the Esurance brand altogether. Allstate has more name recognition than Esurance, and the company boasts fewer complaints than its subsidiary.
The Bottom Line
Esurance offers a straightforward, online-focused service for customers who prefer to handle their insurance digitally. It provides convenience, but with a sacrifice in customer service. While it does have agents available by phone, there are no local agents for customers to receive face-to-face help.
As a subsidiary of Allstate, Esurance is backed by a reputable company. That being said, given that Allstate is planning to retire the Esurance brand in 2020, it may not be worth signing up for a new policy. Given that policies underwritten by Esurance will become Allstate policies eventually, you might be better served going directly to the parent company for your home insurance policy.
Esurance Home Insurance FAQ
About the Authors
Lorraine Roberte is a South Florida-based personal finance writer. Her work has been published on sites such as Thrive Global, Elephant Journal, Red Tricycle and Tweak Your Biz.
