Paul Sanchez
Root Insurance is a relatively new insurance company, founded in 2015, that offers a unique approach to car insurance. Unlike traditional insurance companies that base rates on driving history and demographic information, Root Insurance primarily uses a driver's actual driving behaviour to determine their insurance rates.
After downloading the Root app, drivers are asked to allow the app to track their driving behaviour for a few weeks. The app measures various factors, including braking, turning, speed, driving time and route consistency. After this test period, Root will provide the driver with a quote based on their driving performance.
This usage-based insurance model allows Root to offer lower rates to safer drivers, as they are less likely to file a claim. Root advertises savings of up to $900 per year for its best drivers. However, it is important to note that Root is very selective about who it covers and may deny coverage to high-risk drivers.
While Root's approach to insurance may appeal to some, the company has received mixed reviews. It has been accused of raising rates after the initial policy term and has a high number of customer complaints compared to other insurers. Root is also only available in 34 states as of 2024.
Overall, Root Insurance can be a good option for safe drivers looking for cost-effective insurance. However, it is always recommended to compare quotes from multiple providers to find the best deal.
| Characteristics | Values |
|---|---|
| Type of company | Usage-based insurance company |
| Founded | 2015 |
| Main factor in determining insurance rates | Driving habits |
| Other factors in determining insurance rates | Drivers listed on the policy, cars listed on the policy, driving record, major storms, accident rates in the area |
| App rating (Apple) | 4.47/5 stars |
| App rating (Android) | 3.4/5 stars |
| Customer service reputation | Lacking |
| Available in | 34 states |
What You'll Learn
Root Insurance's telematics-based model
Root Insurance is a relatively new insurance company, founded in 2015. Unlike traditional car insurance companies, Root uses a telematics-based model to determine insurance rates. This means that Root uses technology to set rates based on driving habits.
The telematics-based model at Root Insurance involves using the GPS and accelerometer built into a smartphone to track driving behaviour. The Root app measures a variety of factors, including the number of hours driven, average speed, braking distance and pressure, mileage, and other factors. Root refers to these factors as "safe hours", "smooth braking", "focused driving", and "gentle turning". This data is then used to provide a driver with a quote that reflects their driving behaviour.
The telematics-based model at Root Insurance differs from traditional insurance companies that use driving history and demographic information, such as age, gender, and credit score, to determine rates. Root's model is based solely on driving behaviour, which means that policyholders are not rated based on factors outside of their control. This can result in more affordable rates for safe drivers.
The telematics-based model at Root Insurance also allows the company to monitor and adjust rates over time. Root's actuaries constantly analyse data and monitor their actuarial tables to ensure accuracy. If they find areas where predictions don't align with reality, they adjust prices accordingly. This means that Root's rates are constantly evolving and fluctuate based on various factors.
Overall, Root Insurance's telematics-based model offers a unique approach to determining insurance rates by focusing solely on driving behaviour. This model allows Root to reward good drivers with lower rates and adjust rates over time based on data analysis.
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Pros and cons of Root Insurance
Pros of Root Insurance
- The company offers affordable car insurance based on driving habits.
- Root Insurance has a mobile app that is highly rated on both Apple and Android devices.
- Root Insurance offers 24/7 claims reporting.
- Root Insurance has an "A+" rating from the Better Business Bureau (BBB).
- Root Insurance offers a discount of up to $900 per year for "good" drivers.
- Root Insurance offers a discount for customers who avoid using their phone while driving.
- Root Insurance offers a discount for Tesla drivers who rely on the automated steering feature.
- Root Insurance offers roadside assistance with all policies.
- Root Insurance offers SR-22 certificates following a DUI charge.
- Root Insurance offers rental car reimbursement coverage.
- Root Insurance offers renters and homeowners insurance policies.
Cons of Root Insurance
- Root Insurance has a high volume of customer complaints.
- Root Insurance is not available in all U.S. states.
- Root Insurance may deny coverage more than other companies.
- Root Insurance has not been rated by A.M. Best.
- Root Insurance customers have reported unexpected premium increases.
- Root Insurance's website lacks detail in certain areas, such as the claims process.
- Root Insurance does not offer many discounts.
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How Root Insurance works
Root Insurance is a relatively new auto insurance company that is publicly traded and offered in over 30 US states. It was founded in 2015 on the principle of fairness, aiming to reimagine the insurance industry by offering affordable rates based on driving behaviour rather than solely on demographics.
The Root app uses smartphone technology to measure driving behaviour, including braking, speed of turns, driving times, route consistency, mileage, average speed, and braking distance and pressure. The app does this by engaging the phone's GPS and accelerometer during a test drive period, which typically lasts around three weeks. After the test drive, Root will issue a quote based primarily on driving behaviour. The safer the driver, the lower the quote. Root claims that their best drivers save up to $900 per year.
The app also allows users to manage their policy, including purchasing or customising it, finding their insurance card, making changes, and filing a claim. Root offers traditional insurance policies, including liability, medical, comprehensive, collision, and uninsured motorist property damage coverage. Additionally, they provide roadside assistance and rental car reimbursement coverage.
While Root primarily bases rates on driving behaviour, they do consider other factors such as standard risk calculations and demographic information. Root states that they are committed to eliminating as many factors as possible from their pricing model as technology progresses and artificial intelligence improves.
Root has received mixed reviews, with some customers reporting unexpected rate increases even after achieving perfect driving scores. However, the Root app has high ratings on both Apple and Android devices, and the company continues to expand its services across the US.
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Root Insurance coverage
Root Insurance is a relatively new insurance company, founded in 2015. It offers a unique approach to car insurance by basing insurance rates primarily on a person's driving behaviour. The company uses technology to set rates based on driving habits such as braking, turning, speed, driving time, and route consistency. Root Insurance offers standard insurance coverage options, including liability, collision, comprehensive, personal injury protection, and medical payments. One notable feature of Root Insurance is its inclusion of roadside assistance in all policies, which is not commonly offered by other insurance providers.
Root Insurance has received mixed reviews from customers. While some praise the company for offering lower rates and a convenient mobile app, others have complained about rate increases after the initial policy period. Root Insurance is currently only available in 34 states and has an A+ rating from the Better Business Bureau. Overall, Root Insurance can be a good option for drivers seeking usage-based insurance, but it is important to compare rates and coverage options with other providers to ensure the best fit for your needs.
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Root Insurance reviews
Root Insurance is a usage-based insurance company founded in 2015. It offers affordable car insurance by only insuring good drivers. The company determines this by tracking driving behaviour through its mobile app. Root Insurance claims that its best drivers save up to $900 per year.
Root Insurance has received mostly positive reviews from its customers. It has an average rating of 4.7 out of 5 stars on the App Store, based on 66.7K ratings as of January 2024. The app has also received over 43,500 reviews, with many customers praising the company's customer service, affordability, and ease of use.
One customer review highlights the simplicity of the claims process:
> "The best customer service I have ever experienced when filing a claim. Speedy process from start to finish. Never been so satisfied with an insurance claim before."
Another customer review mentions the savings they made by switching to Root Insurance:
> "I am sooo happy to be saving about $1000 a year for my auto insurance. Root is an insurance that makes sense when it comes to how they price."
However, Root Insurance has also received some negative feedback. It has a 1.2-star rating out of 5.0 from consumer reviews on the Better Business Bureau (BBB) and a 4.3-star rating on Trustpilot. Many of the negative reviews on the BBB and Trustpilot complain about raised rates after the first six months of coverage. Some customers also mention issues with the app tracking their driving behaviour and penalising them for things like starting and stopping too much or driving at night.
One customer review on Reddit mentions their experience with the app:
> "I tried out the app for a month because I'm an old man driver with a perfect driving record and figured if they reward good drivers I'd be a perfect candidate. The rate I got after a month was like $50 more a month than what I pay with Progressive for worse coverage so you can say I was less than impressed. I got dinged for starting and stopping too much, which is kind of what a commute up and down 23 does to you."
Another customer review on Reddit expresses frustration with unexpected rate increases:
> "Had root for a few months I've had a perfect driving score the whole time. And I was under the impression that it would save me money. No my monthly payment has gone up twice since I've had it. What's the point of letting somebody track you if it does nothing for you."
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Frequently asked questions
Root Insurance has a mixed reputation when it comes to customer service. While the company has a solid user experience on its app, it has received complaints about its claims process and limited coverage options. Some customers have reported issues with claim delays, sudden drops in coverage, and unexpected rate increases.
Root Insurance is a usage-based insurance company that offers personalized rates based on your driving behavior. After downloading the Root app, you'll need to give the app access to your phone's GPS to monitor your driving habits for a few weeks. Root analyzes factors such as braking, turning, speed, driving time, and route consistency. Based on your driving performance, Root will either provide you with a quote or notify you that they cannot offer coverage.
Root Insurance primarily bases its rates on your driving habits and behavior. Unlike traditional insurance companies, Root places less emphasis on factors such as age, credit score, and demographics. However, other factors that may influence your rate include your driving record, the number of drivers and vehicles on your policy, and external factors such as accident rates and weather conditions in your area.
No, Root Auto Insurance is not available in all states. As of 2024, Root is available in 34 states, including Alabama, Arizona, Arkansas, California, Colorado, Connecticut, and others. The company's website provides a coverage map where you can check availability in your state.
Root Insurance requires all potential customers to participate in the test drive to assess their driving behavior and determine eligibility for coverage. After the test drive period, which typically lasts a few weeks, Root will provide you with a personalized quote based on your driving performance.
