Nowadays, it appears like anything can be done online, from video conferencing with your doctor to shopping groceries through an app. Purchasing insurance is no exception; in fact, many digital insurance businesses provide online and app-based services. Many clients no longer need to speak with a representative.
The age of insurtech has also proven to be highly enlightening. Consumers may get answers to their most pressing problems and be directed flawlessly through the insurance-buying process, from assessing how much coverage they require to putting up a policy in minutes.
We researched the best digital insurance companies available today to help you find the right coverage, no matter what type of policy you need.
About digital insruance.
As the name implies, digital insurance is a type of insurance that is available online or through a mobile app. These platforms draft and price policies using a blend of live customer service and computerized algorithms. Digital insurance businesses offer a wide range of coverage options and products, including auto insurance, home and renters insurance, life insurance, and even healthcare packages.
While some of these organizations are newer, stand-alone startups, many digital insurance providers are owned and backed by well-known, trusted, and established insurance corporations.
Expected costs
In addition to the individualized aspect of insurance, each insurance company will continue to have its own underwriting methods 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 employ digital platforms and algorithms to underwrite their policies, which reduces most of their overhead. Furthermore, because many of these businesses have few (if any) physical locations, their operating costs are significantly reduced.
How to choose a digital insruance company?
Before deciding on the finest digital insurance company, we researched three to ten options in each area. 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 affordability.
Life Insurance – Haven Life Insurance Agency
Haven Life makes obtaining life insurance online easier than ever before, with up to $3 million in inexpensive term coverage and a simple digital approach.
MassMutual, which has an A++ (Superior) rating from AM Best, backs the company, and coverage is offered statewide.
Pros
- Available in most states
- MassMutual, term life insurance issuer, holds a A++ AM Best rating
- Offers no-medical-exam, instant coverage with Haven Simple
- Three optional riders to choose from
- Standard term policies can be purchased up to age 64
Cons
- Only term life policies are available
- Many applicants will need a medical exam to finalize coverage
- Active duty military or those currently enlisting are not eligible
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 exceptional, well-below-average complaint index, according to NAIC. Whereas most life insurance companies will only enable you to start the procedure online, Haven Life allows you to finish it and acquire 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 do not currently provide other types of life insurance (such as whole life or ultimate expense), they do provide three different add-on riders (Haven Life Plus, accelerated death benefit, and premium waiver). In addition, qualified candidates can choose InstantTerm, a no-medical-exam insurance that provides immediate coverage up to $1 million.
We were able to get an estimated quote for coverage in about 30 seconds; getting a more in-depth, “real rate” took less than three minutes. If you have questions or just want to chat with Haven Life about your options, you can reach their customer service department via email, phone, or even live chat.
Business insurance – Next Insurance
Protecting your small business with insurance is critical whether you have 20 workers or are a lone proprietor. Next Insurance provides online business insurance coverage for a wide range of enterprises and sectors, and purchasing a policy takes only a few minutes.
Pros
- Eight types of coverage to choose from
- Currently available in 49 states
- Coverage is offered for 1,300+ different types of businesses.
- Buying coverage online usually takes less than 10 minutes
Cons
- Not all products are available in every state
Next Insurance was created in 2016 and provides a choice of small business insurance alternatives to protect you and your company, whether you have one employee or twenty. The company has innovated difficult commercial insurance while keeping it reasonable, which has helped them earn the title of top business insurance in our review.
You may acquire a quotation 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 with Next Insurance in just a few minutes online. Munich R.E. backs all insurance and has an A+ (Excellent) rating from AM Best.
Whether you are a photographer, DJ, contractor, fitness instructor, educator, consultant, or hold one of the 1,300+ professions that Next Insurance covers, you can buy coverage online or over the phone at potentially very low rates.
Next Insurance. “Next Insurance Covers 1300+ Types of Business.” Unfortunately, not all business insurance products may be offered in your state.
Home insurance – Lemonade
Lemonade takes the sting out of the homeowners insurance process by allowing you to acquire coverage online in a matter of minutes and even paying out accepted claims directly to a linked bank account. Lemonade provides a plethora of different coverage options, making it easy to tailor a policy to your specific need.
Pros
- Get a quote in seconds and have a policy in minutes
- Leftover funds are donated to charity.
- Robust mobile app makes managing coverage and filing claims simple
- Simple claims are often paid immediately, and directly into a connected bank account.
- Lemonade boasts an A rating for financial stability.
Cons
- Not currently rated by AM Best
- Lemonade received more than twice the expected number of consumer complaints last year, according to NAIC,
Despite the fact that Lemonade was only founded in 2015, they have created quite a stir in the world of property insurance. The organization provides coverage for homeowners, renters, and condos, with homeowners plans accessible in all 50 states and the District of Columbia.
All plans are readily purchased online or through Lemonade’s mobile app; in fact, receiving a quotation only takes a few seconds and purchasing a new policy only takes a few minutes, which contributed to Lemonade’s selection as the best for homeowners insurance. Customer assistance is available via phone, email, or through the company’s powerful mobile app whether you have questions, are ready to buy coverage, or need to file a claim.
Lemonade deducts a fixed proportion 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 dismissing homeowners’ claims or making lesser 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 rated by AM Best, the company does get a financial stability rating of “A” (Exceptional) from financial analysis firm Demotech.
Auto insurance – Root
Root is a technologically advanced vehicle insurance firm that aims to directly reward good drivers for their good driving behaviors. The software is packed with features and frequently allows users to lower their premiums in half (or more).
Pros
- Good drivers are rewarded for being good drivers
- Customers can save more than half on their auto insurance rates
- Roadside assistance is included with every policy (California drivers excluded)
- Everything can be managed through Root’s feature-rich mobile app
Cons
- Currently only available in 41 states
- You’ll need to participate in a two- to three-week test drive before qualifying
- Root doesn’t yet cover motorcycles, ATVs, commercial vehicles, etc.
Root, which was founded in 2015, has progressively expanded its auto insurance business over the last five years.The app-based technology allows drivers to save money on premiums by performing an innovative “test drive” before a quote is ever computed, which is why it wins our top auto insurance category.
Root’s test drive is a two- or three-week digital trip tracker that is completed immediately through the Root mobile app. Root is able to gauge and evaluate your daily driving patterns, including speed, hostility, and even the times of day you most frequently drive, using this method. With this information, Root can better quantify the risk you represent behind the wheel and, as a result, reward you with lower rates.
Once the test drive is complete and a quote is offered, you can easily buy coverage through the app via credit card or even Apple Pay.
Currently, Root’s reach is a bit limited; they do not insure ATVS, motorcycles, or other special vehicles and they are only operating in 41 states. However, the platform is expanding all the time and they expect to be in more states soon.
Multiple markets – Esurance
Esurance has the coverage you need to insure your home, car, motorbike, pet, or even your life. With several insurance lines to choose from (depending on your state), you can select the policy you require or combine coverage to save money. With an easy-to-use mobile app and a plethora of discounts to pick from, Esurance is worth a look regardless of your coverage requirements.
Pros
- Offers a range of insurance products to choose from
- Available in all 50 states and DC
- Numerous discounts offered to drivers
- Robust mobile app and website make buying and managing policies simple
Cons
- High number of consumer complaints
- Auto insurance is only offered in 43 states.
- Customers are charged an installment fee on monthly premium payments.
Esurance was picked as the top overall supplier due to the ease of use of the platform and the availability of numerous insurance products without the need to communicate with an agent until desired.
Esurance has been writing insurance 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, albeit not all goods are available in every state.
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 installment fee. Depending on your plan, this could cost anywhere from $3 to $10 each 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.
Health insurance – Oscar Health
Oscar Health facilitates the easy connection of consumers to doctors and providers within their expanding healthcare network. Though the program is now only offered in a few states, it provides members with access to cutting-edge facilities as well as a 24/7 link to the care they require.
Pros
- Telemedicine is available for free, 24 hours a day.
- HSA-compatible plans available in some states
- Four coverage tiers offered, in accordance with the Affordable Care Act
Cons
- Only available in select states
- Their in-network provider network was recently reduced.
- Some benefits are limited 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 quick and uncomplicated, which is why we chose Oscar as the best health insurance choice out of the options we considered.
Oscar provides individual and family healthcare coverage, as well as business and Medicare advantage plans. They are now only available in a few states but are rapidly expanding.
Oscar provides you with rapid 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 experts, examine lab results, pay bills and medicines, and even review claims. In addition, you can count your daily steps within the app and earn up to $100 in Amazon rewards every year simply for meeting your health goals.
