All About Esurance Auto Insurance

The choices for auto insurance seem endless. Today, there are a number of online-only insurance companies, just like there are online-only banks. Look at the advantages and disadvantages of Esurance auto insurance, a well-known online company.

What Is Esurance?

Esurance is an online discount auto insurance provider that's been providing coverage since 1999. It's known as a good choice for cheap insurance, says NerdWallet.

The online company began in 1998, but it was purchased by Allstate in 2011 as direct competition to Geico, another option for inexpensive insurance. Along with auto insurance, Esurance also offers motorcycle, homeowners and renters insurance as well as a host of others including life, pet, cell phone, golf cart, Mexico auto and more..

The Pros of Having Esurance

There are several advantages to having Esurance auto insurance:

  • Discounts: Esurance offers a few discounts unavailable through its direct competitor, Geico, states NerdWallet.
  • Customer service: More regional offices and customer service reps are continuously added to Esurance to handle the 24/7 customer service needs, according to its site.
  • High-risk drivers: It could be an attractive option for high-risk drivers, says Consumer Affairs.
  • Apps: Esurance offers a few helpful, useful apps, including DriveSense (tracks your driving) and RepairView (tracks repairs).

The Cons of Having Esurance

As with any insurance company, there are some cons:

  • Agents: There are no agents to talk to or contact if you have Esurance, according to Consumer Affairs. Insurance policies are sold directly to the public online or through associates over the phone.
  • Nationwide: Esurance is not available in every state yet, according to its site. If you're interested in motorcycle coverage, it's limited to a handful of states.
  • Cost: Online may or may not be cheaper. There's quite a discrepancy about Esurance rates, but just like other insurance companies, prices vary by location, the type of vehicle you drive and other factors. Though NerdWallet says Esurance rates are typically lower than the average car insurance policy, prices for Esurance are quoted as higher than competing companies, according to Consumer Affairs and The Simple Dollar's reviews.

More Pros About Esurance

It's worth noting that there are other benefits of having Esurance:

  • The company is highly rated by Moody's Rating, S&P, A.M. Best and Better Business Bureau, according to The Simple Dollar.
  • Esurance offers coverage for custom equipment.
  • Esurance is rolling out a new program with lower rates, called PayPerMile Coverage, designed for those who drive less than 10,000 miles per year. It's only in select areas, but keep an eye out for it, says The Simple Dollar.

Great List of Discounts

Though most if not all auto insurers offer policy discounts, Esurance offers more than most. The discounts can offset the sometimes high rates depending on where you live and what you drive. Here's a list of discounts in alphabetical order compiled by The Simple Dollar:

  • Anti-lock brakes
  • Anti-theft device
  • Claim-free driver
  • Defensive driving course taken
  • Good driver
  • Good student
  • Homeowners
  • Multi-car home
  • Multi-policy (bundled with property)
  • Online purchase of policy
  • Online quote offering the Fast 5 Discount
  • Paid-in-full policy
  • Roadside assistance
  • Safety device

It's best to review each discount and take advantage of as many as possible if you choose Esurance.

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