Best Digital Insurance Companies

We researched the best digital insurance companies available today to help you find the right coverage, no matter what type of policy you need.

1. Best Overall: Esurance
2. Best Homeowners Insurance: Lemonade
3. Best Auto Insurance: Root
4. Best Business Insurance: Next Insurance
5. Best Health Insurance: Oscar Health
6. Best Life Insurance: Esurance

What Is Digital Insurance?

As the name implies, digital insurance is a type of insurance that is available online or through a mobile app. These platforms write and price policies using a combination of live customer service and digital algorithms. Digital insurance companies offer a wide range of coverage options and products, including auto insurance, home and renters insurance, life insurance, and even healthcare policies.

While some of these companies are newer, stand-alone startups, many digital insurance providers are owned and backed by well-known, trusted, and established insurance companies.

How to Choose Between Online Insurance Providers

Before settling on the finest digital insurance provider for each category, we investigated anywhere from three to ten other organisations in the industry. Ratings for the company’s financial stability, feedback from customers, and complaint indices were taken into consideration and compared to the average for the entire country. When making our decisions, we took into account a number of different factors, including mobile access, availability across the country, and pricing.

Esurance – BEST OVERALL

Esurance provides insurance coverage for a wide variety of things, including but not limited to homes, automobiles, motorcycles, pets, and even life. Because there are many different types of insurance to choose from (depending on the laws in your state), you can select the policy that best suits your needs or combine several policies into one to enjoy cost savings. Regardless of the type of coverage you require, it is in your best interest to investigate Esurance because of its user-friendly mobile app and extensive list of available savings.

Pros

1. Provides a selection of different insurance options to pick from
2. Obtainable in all 50 states and the District of Columbia
3. Drivers are eligible for a wide variety of discounts.
4. A powerful mobile app and website make it easy to purchase and administer insurance policies.

Cons

1. Numerous reports of dissatisfaction from customers
2. Only 43 states currently offer some form of auto insurance.
3. A customer’s monthly premium payments may result in the assessment of an instalment fee.

Esurance was chosen as the best overall provider due to the ease of use of the platform and the availability of numerous insurance products without the need to speak with an agent unless desired.

Esurance has been writing policies since 1999 and is owned and backed by Allstate, the largest publicly traded personal insurer in the country with an AM Best rating of A+ (Superior).

It operates in the majority of states, though not all products are available in every state; for example, in Virginia, you can buy an auto policy but not motorcycle insurance.

Many Esurance products can be quoted, bundled, and purchased online or via the mobile app without ever speaking with an agent. If you do not intend to pay your premiums in full online at the start of your policy, be aware that Esurance charges a monthly instalment fee. Depending on your coverage, this could cost anywhere from $3 to $10 per month.

Esurance does not have any physical locations, but they encourage you to contact them by phone, email, or even through their social media channels.

Lemonade – BEST HOMEOWNERS INSURANCE

You can buy coverage online in less than two minutes with Lemonade, and if your claim is approved, you’ll get the money deposited into a connected bank account right away. This service is just one of the ways that Lemonade makes the process of purchasing homeowners insurance considerably less stressful. Although Lemonade is not yet available in all 50 states, the company provides a lengthy range of extra coverage alternatives, which makes it much simpler to construct a policy that precisely addresses your requirements.

Pros

1. Get a policy in less than two minutes and a quotation in less than a minute and a half.
2. Charitable contributions are made from any remaining funds.
3. Strong smartphone app simplifies both the management of coverage and the submission of claims.
4. In many cases, straightforward claims result in an immediate payment that is made into an associated bank account.
5. Lemonade has earned a grade of A for its strong financial position.

Cons

1. There are just 36 states and the District of Columbia that provide homeowners insurance.
2. AM Best does not currently rate this product.
3. According to the NAIC, the number of consumer complaints regarding lemonade was more than twice as high as what was anticipated.

Despite the fact that Lemonade was only founded in 2015, they have created quite a stir in the world of property insurance.

The company provides coverage for homeowners, renters, and condos, with homeowners policies available in 36 states and the District of Columbia.

All policies are easily purchased online or through Lemonade’s mobile app; in fact, getting a quote takes only a few seconds and purchasing a new policy takes less than two minutes, which contributed to Lemonade’s selection as the best for homeowners insurance. Customer service is available by phone, email, or through the company’s robust mobile app if you have questions, are ready to buy coverage, or need to file a claim.

Lemonade deducts a fixed percentage of your monthly premiums to cover operating expenses and the remainder to pay claims. Whatever is left over is donated to the charity of your choice. Lemonade doesn’t make a profit by denying homeowners’ claims or making smaller payouts, which gives many policyholders additional peace of mind that they’ll have the coverage they need when they need it the most.

While Lemonade has not been evaluated by AM Best, the company does have a financial stability rating of “A” (Exceptional) from financial analysis firm Demotech.

Root – BEST AUTO INSURANCE

Root is a technologically advanced auto insurance company that aims to directly reward good drivers for their good driving habits. The app is feature-rich and frequently allows drivers to cut their insurance premiums in half (or more).

Pros

1. Good drivers are rewarded for their efforts.
2. Customers can save up to 52% on auto insurance.
3. Every policy includes roadside assistance (California drivers excluded)
4. Root’s feature-rich mobile app can handle everything.

Cons

1. At the moment, it is only available in 32 states.
2. Before qualifying, you must complete a two- to three-week test drive.
3. Motorcycles, ATVs, commercial vehicles, and other vehicles are not yet covered by Root.

Root, which was founded in 2015, has steadily expanded its auto insurance presence over the last five years.

The app-based platform allows drivers to save money on premiums by utilising an innovative “test drive” before a quote is ever calculated, which is why it wins our best auto insurance category.

Root’s test drive is a two- or three-week digital trip tracker that is completed directly through the Root mobile app. Root is able to gauge and evaluate your daily driving habits, including speed, aggression, and even the times of day you most frequently drive, using this method. With this information, Root can better calculate the risk you pose behind the wheel and, as a result, reward you with lower premiums.

When the test drive is finished and a quote is provided, you can easily purchase coverage through the app using a credit card or even Apple Pay.

Root’s current reach is somewhat limited; they do not insure ATVS, motorcycles, or other special vehicles, and they only operate in 32 states. However, the platform is constantly expanding, and they expect to be in more states soon.

Next Insurance – BEST BUSINESS INSURANCE

Protecting your small business with insurance is critical whether you have 20 employees or are a sole proprietor. Next Insurance provides online business insurance coverage for a wide range of companies and industries, and purchasing a policy (which starts at $19 per month) can be completed in minutes.

Pros

1. There are eight different types of coverage to choose from.
2. The product is currently available in 49 states.
3. Coverage is available for over 1,300 different types of businesses.
4. Purchasing insurance online usually takes less than 10 minutes.

Cons

1. Not all products are available in every state

Next Insurance was founded in 2016 and provides a variety of small business insurance options to protect you and your company, whether you have one employee or thirty.

The company has innovated complicated commercial insurance while keeping it affordable, which has helped it earn the title of best business insurance in our review.

You can get a quote for general liability insurance, business insurance, business owner’s policy (BOP) coverage, property insurance, commercial truck/auto insurance, workers’ compensation insurance, or professional liability/E&O coverage from Next Insurance in just a few minutes online. All policies are backed by Munich R.E., which has an AM Best rating of A- (Excellent).

If you work as a photographer, DJ, contractor, fitness instructor, educator, consultant, or any of the other 1,300+ professions covered by Next Insurance, you can purchase coverage online or over the phone for as little as $19 per month. Unfortunately, not all commercial insurance products are available in your state.

Oscar Health – BEST HEALTH INSURANCE

Oscar Health facilitates the easy connection of consumers to doctors and providers within their expanding healthcare network. Though the programme is currently only available in a few states, it provides participants with access to cutting-edge facilities as well as a 24/7 link to the care they require.

Pros

1. Telemedicine is available 24 hours a day, seven days a week.
2. Some states offer HSA-compliant plans.
3. According to the Affordable Care Act, four levels of coverage are available.

Cons

1. Only available in certain states.
2. Their network of in-network providers was recently reduced.
3. Some advantages are only available to participants in specific areas.

Health insurance looks very different today than it did a decade ago, especially since the Affordable Care Act was passed. Purchasing coverage for yourself or your family with Oscar Health is simple and straightforward, which is why we chose Oscar as the best health insurance option out of the options we considered.

Oscar provides individual and family healthcare coverage, as well as business and Medicare advantage plans. They are currently only available in a few states but are rapidly expanding.

Oscar gives you immediate access to the care you require, especially when it comes to telemedicine. You can see a board-certified doctor in as little as 15 minutes (whether you need a diagnosis or just want to refill a prescription), day or night, with no copay or out-of-pocket cost.

The Oscar app allows you to search for and meet with healthcare professionals, view lab results, pay bills and prescriptions, and even review claims. In addition, you can track your daily steps within the app and earn up to $100 in Amazon credits per year simply for meeting your health goals.

Some of Oscar’s key benefits are only available to plan participants in certain areas. For example, only New York residents will have access to the Oscar Center, a cutting-edge health facility in Brooklyn.

Haven Life Insurance Agency – BEST LIFE INSURANCE

Haven Life makes buying life insurance online easier than ever before, with up to $3 million in affordable term coverage and a simple digital process. MassMutual, which has an A++ (Superior) rating from AM Best, backs the company, and coverage is available nationwide.

Pros

1. Most states have it.
2. MassMutual, a term life insurance company, has an A++ AM Best rating.
3. InstantTerm provides no-medical-exam, immediate coverage.
4. There are three optional riders from which to choose.
5. Standard term policies are available until the age of 64.

Cons

1. Only term life insurance policies are available.
2. Many applicants will require a medical exam to be approved for coverage.
3. Active duty military personnel and those currently enlisting are ineligible.

While Haven Life was founded in 2015, it is owned by MassMutual, a well-known name in the insurance industry since 1851.

As a result, Haven Life by MassMutual can boast an AM Best A++ financial strength rating as well as an impressive, well-below-average complaint index, according to NAIC.

Whereas most life insurance companies will only allow you to start the process online, Haven Life allows you to finish it and get life insurance in minutes, making it our choice for best life insurance.

Customers in most states can purchase online term life insurance from Haven Life. While they currently do not provide other types of life insurance (such as whole life or final expense), they do provide three different add-on riders (Haven Life Plus, accelerated death benefit, and waiver of premium). In addition, qualified applicants can choose InstantTerm, a no-medical-exam policy that provides immediate coverage up to $1 million.

We received an estimated quote for coverage in about 30 seconds, and a more detailed, “real rate” quote took less than three minutes. If you have any questions or simply want to talk to someone about your options, you can contact Haven Life’s customer service department via email, phone, or even live chat.

What Will the Costs of Digital Insurance Be?

In addition to the personalised nature of insurance, each insurance company will continue to have its own underwriting processes and algorithms. As a result, estimating the cost of digital insurance is difficult.

Having said that, many consumers benefit from insurtech by saving money. This is because the majority of these firms use digital platforms and algorithms to underwrite their policies, which reduces much of their overhead. Furthermore, because many of these businesses have few (if any) physical locations, their operating costs are significantly reduced.

The Criteria We Used to Select Online Insurers

Before deciding on the best digital insurance company, we researched three to ten options in each category. Financial stability ratings, consumer reviews, and consumer complaint indexes compared to the national average were all taken into account. When making our decisions, we also took into account mobile access, availability across the country, and pricing.