In the modern world, insurance customers prefer products that are connected to the Internet, their preferred channel of communication and information. And many insurers are now offering new digital technologies to meet the demands of today's consumer. So whether you need health, life, car or home insurance, there are a few companies that can help you sign up easily through an app or website. Here are some of the best digital insurance providers options to buy now.
A Guide to the Best Digital Insurance Providers
- Best for Home Insurance: Lemonade
- Best Digital Provider for Auto Insurance Quotes: Insurify
- Best for Autos with Low Mileage: Metromile
- Best for Safe Drivers: Root
- Best Health Insurance Wellness Incentives: Oscar Health
- Best for Life Insurance: Ladder Insurance
BEST FOR HOME INSURANCE: Lemonade
Lemonade is a digital provider founded in 2015 offering homeowners, condo, and renters insurance to residents of over 30 states. Customers can buy insurance directly online without the use of an agent. Lemonade is not your typical insurance company. The company keeps a fixed amount of your paid premium to pay for operating expenses and uses the rest to pay claims. Any unclaimed premium can go to a nonprofit of your choice.
The company uses artificial intelligence in the form of chatbots to handle claims and provide insurance policies. The app “A.I. Jim” handles policyholder claims, and while you are filing a claim, the app reviews and processes, cross-references against the policy and either approves/disapproves a claim. Policies can be purchased and claims paid often within a few minutes or less. Lemonade has an “A” financial strength rating from insurance rating organization, Demotech.
Basic policy options include:
- Replacement value
- Personal property $10K-$250K
- Deductibles $250-$2,500
- Med Pay $1K-$5K
- Personal Liability $100K-$500K
- Loss of use $4.5K-$200K
For an additional premium, you can add coverage for:
- Jewelry
- Fine art
- Electronics
- Cameras
- Musical equipment
- Bikes
BEST DIGITAL PROVIDER FOR AUTO INSURANCE QUOTES: Insurify
Digital provider Insurify uses artificial intelligence to provide you with real, accurate auto insurance quotes by simply entering your zip code and answering questions about who you are and how you use your car.
Insurify provides auto insurance quotes through partnerships with more than 200 auto insurance partner companies, including top-rated auto insurers such as Esurance, Farmers, AIG, Progressive, Safeco, Liberty Mutual, Nationwide and more.2 The company has its own software called RateRank that matches drivers with the best options for auto insurance based on the user’s unique risk profile. The software provides you with the best options for auto insurance. Insurify is available to users in all 50 states.
BEST FOR AUTOS WITH LOW MILEAGE: Metromile
Metromile is a digital provider founded in 2011 offering auto insurance to low mileage drivers through a telematics device installed on your vehicle that measures the miles you drive. Coverage is available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.
The device you install in your car is called the Metromile Pulse and could potentially save you as much as $741 per year on auto insurance. Drivers with 10,000 miles or less could receive substantial saving on auto insurance premiums. Metromile also offers a smart driving app that offers features for trip optimization, stolen vehicle, car health diagnostics and street sweeping alerts to help you avoid tickets.
BEST FOR SAFE DRIVERS: Root
Root is a relatively new entrant to the auto insurance market. The auto app used by Root can save safe drivers hundreds of dollars on their auto insurance annually. The app monitors your driving habits such as hard braking, mileage, hard turn and more to calculate your insurance rate. You can also buy an auto insurance policy, get ID cards and customize coverage through the app. There are no agents, everything is done through the app. Root car insurance is currently available in 33 states, with plans to expand coverage to other states soon. The Root insurance application is compatible with iPhones and many Android phones. You can find the app on Google Play Store.
What sets Root insurance apart is that the main factor in determining the price you pay for auto insurance is your driving skill. Not everyone can qualify for coverage, only the best drivers. It takes two to three weeks of test driving, and if you qualify, you’ll get a quote based on your driving skill. Quotes are not available to drivers unless they take a test drive with the app. The company claims its algorithms are so sophisticated—they can tell if you are driving, are a passenger, walking, riding a bike or even taking a subway when your app is turned on and will only use the data collected from when you are actually driving your car to determine your quote.
BEST HEALTH INSURANCE WELLNESS INCENTIVES: Oscar Health
Oscar Health Insurance started in 2012 and offers health insurance across 22 states. The Oscar app is downloadable and compatible with Android and iOS. The app offers 24/7 doctor-on-call services.
With the app, to request a callback from an on-call doctor, you simply tap the app and can receive a callback from a doctor, usually within minutes. The app can also send prescriptions to your pharmacy. Your Concierge Team includes a registered nurse and three care guides to provide health care and answer questions. The company also offers health insurance wellness incentives for being active.
There are low-deductible options available. Oscar Insurance currently has a Better Business Bureau rating of “A-." There are three tiers of plans— bronze, silver, and gold.
BEST FOR LIFE INSURANCE: Ladder Insurance
Ladder Insurance is a digital insurance agency that has partnered with Fidelity Security Life and Allianz Life Insurance Company to offer life insurance without the use of agents directly to consumers online without charging fees. The online process of purchasing a policy can be done in as little as five minutes and you can sign any documents necessary for coverage with an E-signature.
The company's partners (Fidelity Security Life Insurance Company, Allianz Life Insurance Company of New York, and Allianz Life Insurance Company of North America) have AM Best ratings of A (Excellent) or A+ (Superior). Policyholders can purchase term life insurance coverage in varying amounts up to $8 million in coverage. What the company offers is simple and fast coverage for almost any amount of coverage. However, there are no policy riders (extra coverage options for an additional premium) available.
The company offers policyholders the unique ability to ladder up (increase coverage) or ladder down (decrease coverage) based on certain life events (marriages, births, purchase of a new home, etc.) or other changes in circumstances. If you decide to decrease your coverage, your premiums decrease by the same percentage as your coverage (for example, a 10% decrease in coverage means a 10% decrease in your policy premium). There is no charge for either increasing or decreasing coverage.
Frequently Asked Questions
What Is Digital Insurance?
Digital insurance is offered online by companies that use digital technology for business operations, for product and service sales, and for customer interactions. Different types of insurance, including health, life, home, auto, renters, and pet insurance, can all be digital.
Your transaction will be done online, and you can shop around for providers, get quotes, and compare digital insurance providers from your mobile phone or your computer.
How Much Does Digital Insurance Cost?
Digital insurance costs can vary widely because this is such a broad type of insurance. It covers any insurance that’s sold digitally. Renters insurance can be as low as $15 per month, while health insurance or home insurance coverage would be much more expensive.
Your costs will usually be split into your deductible and monthly premiums.
Is Digital Insurance Worth the Cost?
The internet allows you to price shop for whatever type of insurance you need without leaving the comfort of your home. You can easily compare policies and choose the features you want for the best price on your computer or phone. Not only will the policy likely cost you less when you buy it, but you won’t spend hours finding the best policy for your needs, and time is money.
Digital insurance providers are usually able to offer lower prices because their overhead is less. They don’t have to pay rent for a storefront or utilities, or buy and maintain a brick-and-mortar business location. This type of insurance can be worth the cost because you know what you’re paying for, and you aren’t paying a premium for a company’s costly operating costs.
Methodology
We chose the best digital insurance companies based on their customer satisfaction ratings and reviews, as well as financial strength ratings, the types of insurance they offer, and coverage areas. We chose the top companies after researching and reviewing the most popular in the sector.