5 Best Digital Insurance Companies in 2022 • Benzinga

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The technological advancements of the 21st century have had a tremendous positive impact on many aspects of life. The digital transformation is unprecedented, from how people communicate and connect to how they work or conduct business. Industries from manufacturing to retail are leveraging digital technology to streamline workflow and meet customers at their point of need. Healthcare, banking and finance and insurance have not been left out.

Like digital banking, digital insurance companies have emerged to offer more personalized and efficient services to the insured. Gone are the days when you need a lot of paperwork to purchase an insurance policy or file a claim. Digital insurance companies are optimized for speed. You can get quotes, view and buy a policy, file claims and receive feedback in real-time using apps. On their end, brokers can seamlessly receive and process your information without hassles under one system. Often, prospective customers do not need to consult an agent before setting up a suitable insurance policy. This process makes for high efficiency and flexibility.

Whether life, auto, homeowners or health insurance, digital insurance companies offer greater access and policy options regardless of your preference. Are you looking to purchase a digital insurance policy today? Benzinga’s guide will give you insight into the best digital insurance company for specific policy options. That way, you can make more informed choices.

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A quick look at the best digital insurance companies: 

  • Best Overall: Esurance
  • Best for Homeowners: Lemonade
  • Best for Life Insurance: Ladder Life
  • Best for Auto: Root
  • Best for Health: Oscar Health

Best Overall Digital Insurance Company: Esurance

By total inclusivity, Esurance stands out as Benzinga’s pick for the best overall digital insurance company. The carrier’s platform is simple and easy to use, with offerings for a host of insurance products. Whatever you want to insure, Esurance is most likely covering it. And you can also pay in bundled subscriptions to reduce costs.

Esurance was founded in 1999 and is currently owned and backed by Allstate. Allstate is the U.S.’s most prominent publicly held personal insurer with an AM superior rating of A+ — a testament to Esurance’s depth. With only a mobile phone or your laptop, you can quickly get a quote and purchase your insurance policy through its mobile app or website. You can do all these without ever having to speak to an agent.

You should note that Esurance charges a monthly installment fee for premium payments. Therefore, if you don’t plan on fully paying your premiums upfront at the start of your policy, you should be prepared. An amount from $3 to $10 a month will be deducted as an installment fee.

Pros

  • Offers several insurance products with a wide range of coverage
  • Extensive and robust discount packages 
  • Available in all 50 states and Washington, D.C.
  • Easy-to-use mobile app and website that facilitates buying and managing policies
  • Good customer service 
  • Relatively lower policy prices

Cons

  • NAIC rating of 2.92, indicating a relatively high number of consumer complaints
  • Auto insurance coverage available in only 43 states
  • Installment interest fee on premium monthly payments

Best Digital Insurance Company for Homeowners: Lemonade


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securely through Lemonade’s
website

Best For

Ratings, price and customization

1 Minute Review

Lemonade home insurance provides a top-rated homeowners insurance experience that’s easy and hassle free. Award-winning customer service and digital, super-fast everything from just $25 a month.

Lemonade uses technology to simplify the home insurance claims and sign up process. You can buy a policy in just a few minutes by answering a few simple questions, and some claims can be  paid instantly using its innovative AI technology. 

The app has high user ratings and keeps you connected with your policy. Lemonade may also donate a portion of your premiums to a charity of your choice each year through its Giveback program. 

Best For

  • Those looking for an ultramodern home insurance experience
  • Those looking to switch from other homeowners insurance coverage
  • Tech-loving homeowners who want fast, efficient home coverage
Pros

  • Get coverage in as little as 90 seconds
  • Most claims paid in less than 3 minutes
  • Leftover premiums support charities you care about
  • Buried utilities and equipment failure endorsements available
Cons

  • Not yet available in all states

Although Lemonade is a new entrant, the insurance carrier has carved its own space in the industry. With unique traits like instant settlement of simple claims, a flat heel policy and online services, the carrier is ahead of other insurance companies in the department of homeowners insurance. 

Lemonade offers homeowners policies across 36 states and Washington, D.C. Its policies include an extensive list of additional coverage options, making it easy to personalize policies that perfectly suit your needs.

Lemonade removes the stress and hassle of the homeowners’ insurance process. With this carrier, getting your policy set up from start to finish is as simple as two clicks on your screen. In just two seconds, you can get your quote. And less than 2 minutes later, your policy is ready.

The insurance company charges a flat percentage of your premium payments for operational expenses and claim settlement. Any money left after charges and claim fee deduction is automatically transferred to a charity of your choice. 

Pros

  • Simple yet robust mobile apps that facilitate coverage management and simplify claim filing
  • Speedy framework
  • Get a quote in two seconds and a policy in less than two minutes
  • Flat heel policy — zero interests from claims dispute or settling
  • Claims handled as fast as possible. 
  • Simple claims settled immediately with a direct payment into a linked bank account
  • Superior A rating for financial stability

Cons

  • Limited coverage — only 36 states and Washington, D.C.
  • 100% year-to-date (YTD) increase in the number of customer complaints, according to NAIC
  • No AM Best ratings

Best Digital Insurance Company for Life Insurance: Ladder Life


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securely through Ladder’s
website

Disclosure: Ladder Insurance Services, LLC (Cal. license # 0K22568; Ark. license # 3000140372) offers term life insurance policies: (i) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (ii) in all other states and the District of Columbia on behalf of Allianz Life Insurance Company of North America, Minneapolis, MN (policy form # ICC20P-AZ100 and # P-AZ100). Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.

Best For

Adjustable coverage

1 Minute Review

Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as needs change.

You can choose a 10, 15, 20, 25, or 30-year term. Ladder also offers up to $3 million in coverage without a medical exam — just answer a few health questions and complete the application to get an instant decision.

Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:

  1. You can apply for life insurance coverage with Ladder right now via the online application.
  2. Find out whether you’re instantly approved.
  3. Accept your offer — including affordable prices and no hidden fees.

Its price lock guarantee ensures your premium won’t increase as your health changes and you age. Policies in New York are issued by Allianz Life Insurance Company of New York and in the other states and DC by Allianz Life Insurance Company of North America. You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.

 

Best For

  • Term life insurance
  • Online application
  • Policyholders between 20 to 60 years of age
Pros

  • Up to $8 million in coverage
  • Price lock guarantee
  • No policy fees
  • 30-day money-back guarantee
  • Adjustable coverage
Cons

  • No policy riders
  • Term life insurance only

Founded in 2015, Ladder is an insurance company that offers term life insurance to individuals between 20 and 60 years. Since its inception, this carrier has rapidly developed and now operates in all 50 states plus D.C.

Ladder leverages a simple but robust tech-forward approach to providing life insurance. With Ladder’s mobile app, you can easily set up a policy in as little as five minutes without needing agents. The app also collects all necessary signatures via E-signature.

While the insurance company lacks optional riders that should otherwise allow users to customize their policies, its single direct policy has robust coverage. Emphasis is on efficiency and simplicity. Policyholders can sign up for life insurance coverage for up to $8 million.

With Ladder’s life policies, you can scale your coverage (Ladder up) or reduce your coverage (Ladder down), depending on your situation. This feature allows you to adjust your finances and make way for extra expenses if want to get a new home, get married or plan for kids. 

Should you ladder down, your monthly premiums decrease by the same proportion as your coverage (e.g., a 15% decrease in coverage equals a 15% decrease in premium payments) and vice versa. Ladder doesn’t charge for coverage laddering.

Pros

  • Excellent AM Best Rating (A)
  • $0.00 fees
  • Up to $8 million in life insurance
  • Get a quote and set up a policy in under 5 minutes
  • Increase or decrease policies flexibly
  • 30-day money-back guarantee with no cancellation fees

Cons

  • No additional coverage for policies
  • A relatively higher number of consumer complaints
  • Eligible for only adults between 20 and 60 years

Best Digital Insurance Company for Auto: Root


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securely through Root Insurance’s
website

Best For

Infrequent drivers

1 Minute Review

Root’s “user-based insurance” model claims to reward drivers who stay safe on the road and practice good driving habits — and you can save 52% when you switch. However, what defines a “good” driver isn’t clear from Root’s website, and Root reserves the right to drop you from your policy if you get involved in a “series of accidents.” Root is best for infrequent drivers and drivers with a totally clean record.

Best For

  • Infrequent drivers
  • Drivers without accidents on their record
  • Drivers who don’t travel long distances
Pros

  • Many coverage types available
  • Comprehensive mobile app
  • Free roadside assistance included with every policy
  • User-based insurance model means safe and infrequent drivers save more.
Cons

  • Opaque customer service hours
  • No clearly defined discounts
  • Must complete a “test drive,” which lasts up to a month before you get a quote
  • No policies available for “high-risk” drivers
  • Not available in all states

Root is a tech-centric auto insurance company that directly rewards private car owners for good driving habits. The mobile app boasts multiple rich features, one of which allows drivers to earn discounts (up to 50%) on monthly premium payments. 

Should you choose to insure your car with Root, you’ll have to undergo a “test drive,” lasting two to three weeks. Roots mobile app will use the results from the test drive to award the discount related to your estimated driving habits, even before getting a quote.

During the trial test drive run, Root gathers data about your speed, aggression, uptime and downtime periods to evaluate your driving habits. The Root app will intuitively calculate and scale your results using an algorithm and reward you accordingly. After completing the test run, you’ll get a quote and pay with your credit through your mobile.

Pros

  • Rewards for good driving
  • Up to 52% discount on auto insurance rates
  • Roadside assistance inclusive policies (except for California drivers)
  • Easy-to-use multi-feature mobile app

Cons

  • Limited coverage area — only 32 states
  • 2 to 3 weeks test drive trial for qualification
  • No coverage for motorcycles, commercial vehicles and ATVs

Best Digital Insurance Company for Health: Oscar Health


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