Online Car Insurance: Market Leaders and USP

Goals

To identify the market leaders in online car insurance, including those who have recently (past 5 years) entered the category. For each identified company, provide the date founded, the location, and their unique selling proposition (USP). This information will be used to advise a client who is seeking to enter this market.

Early Findings

Top Online Auto Insurance Companies

  • The ten largest auto insurance companies comprise 72% of the United States auto insurance market.
  • The top 5 insurers, by revenue, are State Farm, Geico, Progressive, Allstate and USAA. Each offers the ability to purchase auto insurance online.

State Farm

  • State Farm positions their online insurance quote as "fast and easy", emphasizing their market position ("largest auto insurance provider in the United States") and fast and reliable claims payment process.
  • Their online insurance process requires detailed information (vehicle information, driver details and history) and offers the option to save a quote and return to it later, as well as chat with an agent online or connect with an agent in person or via phone.

Geico

Allstate (Esurance)

  • Esurance, now owned by Allstate, was one of the first companies to sell auto insurance online.
  • The company highlights their ability to offer a simple, transparent, and affordable online car insurance purchase process.
  • They highlight their use of technology, specifically their mobile app, to help their customers work as quickly and efficiently as possible in the car insurance process.
  • The company also highlights positive user reviews, awards, and statistics, such as speed to quote (6 minutes), average savings of those who switched to Esurance and saved ($462), and top companies from which Esurance customers switch.

Online Auto Insurance Start Ups (Insurtech Companies)

MetroMile

  • MetroMile is an Insurtech company (technology-driven insurance provider) with a business model based on charging a low base rate, with a flat "per mile" charge in addition.
  • The company focuses on value and customization in its positioning. Their website messaging highlights customization of car insurance options, easy connection via device to measure mileage, and savings.
  • They support their messaging with customer testimonials highlighting savings, as well as quantitative data showcasing the amount of money that can be saved by using their service.
  • As a tech-focused company, they highlight the benefits of the MetroMile app, including finding a lost or stolen car, managing the insurance policy, and monitoring the health of the car.
  • The company was founded in 2011, though much of their press appears to have emerged in the past 5 years.
  • The company is headquartered in San Francisco, CA and their insurance products are offered in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.

Insurify

  • Insurify leverages artificial intelligence to provide auto insurance quotes via a photo of a car's license plate. The company was founded in 2016.
  • The company works with over 80 auto insurers in the United States to provide auto insurance. They leverage software to match applicants with the optimal provider.
  • Their messaging focuses on simplifying the auto insurance purchasing process via technology.

Insurtech for Auto Insurance

Summary of Early Findings Relevant To The Goals

  • In this first hour, we were able to find a number of companies operating in the online car insurance space. This includes both large insurers, such as State Farm, and smaller, emerging companies aiming to disrupt the auto insurance industry (Insurtech companies).
  • We did not find a specific list of top or recent (past 5 year) online auto insurance companies. Instead, we relied on information highlighting recommended, top or notable Insurtech companies disrupting the auto insurance industry, assuming these companies are most likely the more recent entrants in the space.
  • While our focus was largely on the United States market, we included two disruptors in the UK market (Carrot and Coverbox).
  • Our recommendations are based on the information uncovered in early research.


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