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The American insurance industry dates back to the time of Benjamin Franklin. So it’s no surprise that new companies are trying to change how people think about insurance by calling themselves insurtech startups and starting to change the way things get done. They use algorithms, machine learning, and artificial intelligence to change the industry. But what does it mean for you, and are they any good?
Find out about some insurtech companies that are meeting the insurance needs of digital-oriented customers and cutting insurance costs for their policyholders. But when you’re surveying your insurance options, compare car insurance quotes from top companies to find the best options for your needs and budget.
Digital insurance companies are worth considering for all your insurance products.
While you tend to save on insurance costs with digital companies, it’s still important to compare them with all other insurance companies for the best deal.
If you love working with an insurance agent, you’ll probably want to stick with a legacy insurance company.
Best Digital Car Insurance Companies
What is a digital insurance company?
Digital insurance companies provide products and services via technology, as opposed to more traditional brick-and-mortar-relaint agency-centric insurance companies.
With a new approach to auto insurance coverage, Metromile is attracting customers by offering super-low premiums to drivers who don’t cover much distance in a given month. Metromile charges a base rate that tends to be incredibly low and a per-mile rate that lets drivers who drive less than 10,000 miles per year save money.
If you work from home and don’t commute or generally drive infrequently, you may be frustrated that you’re overpaying for car insurance. In that case, you might enjoy Metromile’s low premiums. That said, the company has a lot of customer complaints, and it’s not rated for financial strength by A.M. Best or any of the big agencies. So tread carefully.
Super-safe drivers with clean records looking to negotiate their insurance premiums should check out Root, a company dedicated to rewarding great driving habits with a telematics program operated by artificial intelligence. Designed to lower insurance rates for safe driving, this company is only for drivers who are comfortable with having their habits digitally tracked.
The insurance agency’s policies are somewhat bare-bones. But if you’re a young driver who wants to show that you have great driving habits, you might be able to earn lower rates from Root than from car insurance companies that profile you based on your age. Available in 31 states, Root is well-rated on financial stability and rated average on customer satisfaction.
See More: Best Car Insurance Companies
Best Digital Companies for Homeowners Insurance and Renters Insurance
Lemonade is one of the hottest new insurtech startups. This digital-only insurance platform started with renters insurance but now includes home insurance, pet insurance, term life insurance, and car insurance. With coverage in over 30 states, it expects to put the whole U.S. in its coverage area in due time.
So what’s different about Lemonade? First of all, it’s a B-corp, meaning that it has rules in place that make it accountable to the broader public as well as to its investors and customers. As part of that, Lemonade claims to run a different business model that prevents it from profiting by denying insurance claims.
Instead, Lemonade says it keeps a flat amount of your premiums for profit and overhead, then donates the leftovers to a nonprofit of your choice through its Giveback Program. If that’s not enough to feel good about, Lemonade receives top customer experience reviews and charges some of the lowest insurance premiums on the market.
A tech-powered insurance platform for homeowners insurance, Hippo has been on the scene since 2017. The company provides lightning-fast insurance quotes and competitive premiums. Hippo does its underwriting through partnerships with some of the world’s most prestigious reinsurance firms, but this puts off some customers who wish Hippo was handling insurance claims directly.
Unlike many digital-first insurance companies, Hippo has customer service available by phone 24 hours a day, Monday through Friday. It earns decent ratings for customer service and an A- rating on financial strength from the Better Business Bureau (BBB). Overall, Hippo should be one of your home insurance options, but shop around for the best quote and coverage.
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Best Insurance Company Mobile Apps
Plenty of older insurance companies still employ insurance agents and have offices in your area. But their digital tools work well enough that customers can sometimes have the best of both worlds as we transition from traditional methods to digital insurance. Here’s what we could find about mobile apps offered by some big insurance providers:
Earning 4.4 stars out of 5 on Apple’s App Store and 4.2 stars on Google Play, Nationwide has a totally respectable mobile app that helps this old insurance provider stick around in a changing industry. If you like your policy and premium from Nationwide, your customer experience won’t be held back by an ancient mobile app.
With 4.5 stars on Apple’s App Store and 4.7 stars on Google Play, Progressive offers a very usable digital experience. Pay bills, change your insurance coverage, add insurance policies, and download your documents and insurance cards with Progressive’s app.
Here’s a powerhouse. Liberty Mutual is one of the nation’s largest insurance companies, and the reviews of its mobile app suggest that it’s not going to be knocked aside by insurtech developers anytime soon. Over 200,000 reviewers on Apple’s App store rated Liberty Mutual’s app with 4.8 stars on average, and it received 4.7 stars on Google Play.
The Allstate mobile app receives great reviews from iPhone users, but its Google Play rating is 3.7 stars. If you have an Android, you might be feeling a little undervalued by Allstate’s digital approach. So if digital insurance is a priority for you, take it into account. Customers say the app is slow, doesn’t save their credit card info, and is generally “useless.”
One of the first digital insurance companies, starting way back in 1999, Esurance provides a positive customer experience on its mobile app, earning 4.8 stars on Apple’s App Store and 4.5 stars on Google Play. Digital insurance isn’t a new idea—Esurance has done it this whole time and has the A.M. Best ratings and great financial standing to remain a strong competitor.
See More: Cheap Car Insurance
Best Website and App for Comparing Insurance Quotes
What artificial intelligence does very well is survey the whole industry for coverage options, source real quotes based on your driver profile, and line them all up for you to click and buy. Insurify’s simple service is second to none for saving you hours of your time finding quotes by hand.
By leveraging strong partnerships with the most important auto insurance companies on the market, Insurify can provide you with a lot of quotes in only a few minutes after you complete a straightforward questionnaire. A truly convenient one-stop shop for insurance quotes, Insurify is a digital insurance service that makes the most of our society’s latest technology.
More Digital Frontiers in the Insurance Industry
Digital innovation is changing the whole economy, and as fintech continues to change the way financial services are delivered, digital insurance promises to influence every type of insurance policy, from life insurance policies to health insurance. Insurance providers of all types are paying attention to artificial intelligence and machine learning tools.
Frequently Asked Questions
These digital insurance companies try to leverage new technology to write insurance policies that are more transparent, simple, and exclusively online. Generally, they try to offer lower premiums to customers who are overlooked or overcharged by legacy insurance providers, like safe drivers and low-mileage drivers.
Metromile is emerging as a fierce new player in the auto insurance industry by providing affordable insurance coverage to drivers who don’t drive as much. Root is also making a name for itself as an insurance company that can attract truly safe drivers who are willing to enroll in a powerful telematics program and bring their rates down with good habits.
Homeowners insurance, life insurance, renters insurance, and car insurance are all available from insurtech startups. And the more these companies mature into more sophisticated insurance providers, the more they’re diversifying their insurance options, providing opportunities for bundling that help you save money.
With flashy new technology and sleek websites, these insurtech companies seem to promise a cheap and convenient future for insurance. But you won’t know if you’ll save money until you get a quote, and one quote is never enough. You need to compare rates from as many insurance agencies as you can.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.