Esurance Insurance Services, Inc. is an American insurance company. It sells auto, home, motorcycle, and renters insurance direct to consumers online and by phone. Its primary competitors are other direct personal insurance writers, mainly GEICO and Progressive. Founded in 1999, the company was purchased by Allstate in 2011, and is now a wholly owned subsidiary of Allstate.
Esurance was founded in 1999 by Jean-Bernard Duler, Jeffrey L. Goodman, Huyen Bui, David Griffin, and Charles Wallace, and became one of the first insurance companies to sell policies directly to consumers over the internet, instead of using in-person meetings or phone calls. In 2000, Esurance was acquired by Folksamerica Holding Company, a subsidiary of White Mountains Insurance Group. Esurance, which is based out of San Francisco, had by that time expanded to offering policies in 24 states, but had also just laid off staff and was actively soliciting a purchaser.
In 2004, Esurance began to offer multi-car discount packages to same-sex couples, by offering multi-car discounts to any group of people that lived together. The company claims to be one of the first insurers to have offered such packages to same-sex couples.
In May 2011, Allstate announced that it was purchasing Esurance and rate-comparison site Answer Financial for approximately $1 billion. At the time, Esurance was selling policies in 30 states and was in the midst of a five-year growth period that saw them double the number of policies in force. Allstate, for its part, was losing policy holders to the three major online policy retailers; Esurance, Progressive, and GEICO.
Allstate’s acquisition of Esurance was completed in October of that year. The combined company became the sixth-largest provider of auto insurance policies. In September 2012, White Mountains filed a lawsuit against Allstate alleging that Allstate failed to meet a deadline to produce a financial audit that was part of the sale, and that Allstate deducted $5.2 million in legal expenses from the value of the sale that they were not allowed to deduct by the terms of the agreement.
Esurance Customer Service
P.O. Box 5250
Sioux Falls, SD 57117-5250