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Esurance Expands Auto Insurance Coverage to 21 States; Nearly 60 Percent of U.S. Driving Population

26 June 2000

Esurance Expands Auto Insurance Coverage to 21 States; Nearly 60 Percent of U.S. Driving Population

    SAN FRANCISCO - Esurance Inc., the leading Internet-exclusive provider of personal insurance, today announced that it has expanded its auto insurance coverage area to 21 states with the addition of Colorado, Oregon, Minnesota, Virginia and Washington. With these five additional states, Esurance now offers auto insurance policies through its online service (www.esurance.com) to nearly 60 percent of the nation's driving population, and is positioned to capture a significant portion of the $125 billion personal auto insurance market in the U.S.

    "Technology, and specifically the Internet, is rapidly changing the dynamics of the personal insurance industry," said Jean-Bernard Duler, chairman and CEO of Esurance. "By building a new model designed to leverage technology, we are able to reduce costs, streamline processes and improve service, thereby providing drivers with high quality auto insurance at a value price."

    Esurance is a complete quote-to-claims online insurance carrier that combines the service of an agent-based insurance company with the competitive rates of a direct provider. Esurance enables customers to get expert advice, instant quotes and immediate coverage, but also lets them manage their policy online at their convenience. Esurance customers can add a driver or a car to a policy, change their level of coverage and print out their policy or proof of insurance card, at any time.

    According to research from leading analyst firms, auto insurance will account for a significant portion of all online insurance sales during the next several years. In a recent report, Forrester Research projects auto insurance sales over the Internet will reach an estimated $11.8 billion by 2004, or 90 percent of the total online Property/Casualty insurance sales.

    Esurance's web site is designed to provide an easy, streamlined experience for consumers who want to research and buy insurance instantly. Consumers shopping for auto insurance can research their options, buy insurance online and print out proof of coverage in a few simple steps. For example:

1) Consumers log onto www.esurance.com and provide their zip code,
    then answer a few questions about the cars and drivers to be
    covered. 2) Esurance provides a quote, as well as comparative quotes from
    other carriers in the same state. 3) If they choose, consumers can easily customize their coverage
    options to see how raising or lowering their limits and
    deductibles affects their rates. 4) If a consumer chooses to buy, Esurance automatically validates the
    information provided and issues a policy, not just a temporary
    binder, in real time. Consumers can then print out immediate proof
    of coverage.

    At any point during the process, a consumer can get help from an insurance advisor, either by using the live chat feature on the web site or a toll-free number. Esurance currently offers auto insurance in 21 states, including Arizona, California, Colorado, Connecticut, Florida, Iowa, Illinois, Indiana, Louisiana, Maryland, Michigan, Missouri, Ohio, Oregon, Minnesota, Pennsylvania, South Carolina, Tennessee, Virginia, Washington and Wisconsin. Esurance is licensed to market policies in 44 states and plans to continue expanding its business to additional states this year.

About Esurance, Inc.

    Esurance is the leading Internet-exclusive provider of personal insurance. Through its online service (http://www.esurance.com), Esurance offers consumers expert advice, quote comparisons and instant coverage, as well as convenient, 24x7 policy management and superior claims handling. The San Francisco-based company was the first to offer this real-time quote-to-claims service to more than half the nation's driving population. Founded in 1998, Esurance is backed by top-tier venture capitalists including Redpoint Ventures, Global Retail Partners, Trinity Ventures and 21st Century Internet Venture Partners.