Jeffrey Wade
Root Insurance is a relatively new insurance company that offers a unique pricing model that rewards good drivers with lower rates. The company uses a telematics tracking system that collects information about a user's driving patterns and vehicle performance through their smartphone's GPS and accelerometer. This data is used to determine insurance premiums, with safer drivers paying lower rates. While this technology has raised concerns about data privacy, Root claims to take data protection seriously and never sells personally identifiable data.
| Characteristics | Values |
|---|---|
| Type of Insurance | Usage-based |
| Technology Used | Telematics tracking system |
| Data Logging Tool | Root App |
| Data Collected | Driving patterns, speed, braking habits, mileage, driving times, route consistency, etc. |
| Area of Operation | 22 States in the US |
| Quote | Based on driving data |
| Discounts | Safe driving discount, Focused Driving discount, Tesla drivers discount, bundling auto and renters insurance discount |
| Claim Process | Can be filed within the app or over the phone |
| Claim Settlement Time | 7-10 days |
| Standard Coverages | Property damage, bodily injury liability, collision, comprehensive, medical payments, personal injury protection, uninsured/underinsured motorist coverage |
| Additional Coverages | 24-hour roadside assistance, rental car coverage |
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What You'll Learn
Root Insurance's app tracks driving behaviour
Root Insurance is a relatively new insurance company, founded in 2015. Unlike traditional car insurance companies, Root Insurance offers affordable car insurance by only insuring good drivers. The company operates in 22 states and plans to expand its service to all 50 states.
Root Insurance offers an app that tracks driving behaviour to determine insurance rates. The app uses telematics to collect data about the user's driving patterns, including speed, braking habits, mileage, driving times, route consistency, and more. This data is used to calculate insurance premiums, with safer drivers receiving lower rates. Root Insurance claims that its app uses machine learning to distinguish between drivers and passengers, ensuring that users are not penalised for the driving habits of others.
The Root app is a smartphone-based technology that measures users' driving behaviours to offer more affordable car insurance rates to safe drivers. The app collects data from instruments that already exist in the user's phone, such as the global positioning system (GPS) and accelerometer. The GPS data includes information such as speed, altitude, and direction, while the accelerometer detects the acceleration of the phone, indicating whether the user is driving, a passenger in a car, or even on a plane.
Root Insurance's usage-based app tracks drivers for a trial period before offering an auto insurance premium quote. The company states that it is upfront about the app's persistent monitoring, which cannot be switched off without disrupting the trial period. Root Insurance takes data protection seriously and does not sell users' personally identifiable data. Sensitive information is stored in an encrypted environment, and all data is transmitted securely.
In addition to tracking driving behaviour, the Root app also allows users to file insurance claims. Users can take and upload photos of damages within the app and track the progress of their claims. Root Insurance claims to settle most claims within seven to ten days, which is significantly faster than the industry average of several weeks.
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Telematics tracking system collects data
Root Insurance is a usage-based auto insurance company that offers affordable car insurance by only insuring good drivers. The company operates in 22 states and plans to expand to all 50 states. Root Insurance relies on telematics to track driving patterns and uses the data to determine insurance premiums. The safer and more conscientious a driver is, the lower their rates will be.
The Root Insurance app uses telematics to collect data from instruments that already exist in a user's smartphone, such as the global positioning system (GPS) and accelerometer. The GPS data includes information on latitude, longitude, speed, altitude, and direction. The accelerometer detects the acceleration of the phone, which helps determine whether the user is driving, accelerating too quickly, or braking abruptly. The app also uses gyroscopes to collect data on the phone's rotation rates and orientation during movement.
During the "test drive" period, the app tracks the user's driving behaviours, including speed, braking habits, mileage, driving times, route consistency, and more. The data collected by the telematics system is stored in an "information centre" or database. Root Insurance claims that this persistent monitoring is necessary to build a complete profile of a user. The app uses machine learning to determine whether the user is the driver or a passenger, and the user's score is available on the Driver Scorecard in the app.
While Root Insurance offers lower rates for good drivers, there are privacy concerns associated with the constant tracking and monitoring of the app. Root Insurance does address data privacy by stating that they do not sell personally identifiable data and that sensitive information is stored in an encrypted environment.
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Privacy concerns and tracking problems
Root Insurance offers a unique pricing model that rewards good drivers with lower rates. The company uses a telematics tracking system that collects information about a user's driving patterns and vehicle performance through their smartphone's GPS and accelerometer. While this technology can lead to significant savings for safe drivers, it has raised concerns about privacy and tracking.
One of the main privacy concerns with Root Insurance's model is the persistent monitoring of users. The company's chief technology officer, Dan Manges, has stated that this monitoring is necessary to build a complete profile of a user. While Root Insurance claims to be upfront about the app monitoring users at all times, some may find this level of surveillance intrusive. The app cannot be switched off without disrupting the trial period, which means users must choose between being constantly tracked and receiving a quote.
Another issue is the scope of the tracking. Unlike some other insurance companies, Root Insurance does not limit its tracking to when a user's phone is connected to a car's Bluetooth radio. This means that the app may follow a user even when they are not driving, such as when they are a passenger in someone else's car or even on a plane. This over-inclusive tracking can lead to concerns about the extent of data collection and user privacy.
Additionally, there are questions about the security of the collected data. While Root Insurance has stated that it takes protecting user data seriously and does not sell personally identifiable information, there is still a risk of data breaches or unauthorized access. The sensitive information collected, such as location data and driving habits, could potentially be exposed or misused if not adequately secured.
Lastly, the use of telematics tracking systems by insurance companies can lead to concerns about fairness and discrimination. The data collected may disadvantage certain groups of people, such as those who drive infrequently or in areas with higher accident rates. There is also a risk of profiling based on factors such as location or driving habits, which could result in higher premiums or even denial of coverage for certain individuals or communities.
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Lower insurance premiums for safe drivers
The Root Insurance usage-based app tracks a driver's behaviour for a trial period before offering an auto insurance premium quote. The app tracks driving behaviours such as speed, braking habits, mileage, and phone usage. Root Insurance claims that its app can help its policyholders reduce their premiums by up to 52%.
The company uses telematics to track driving patterns and determine premiums. The safer and more conscientious a driver is, the lower their rates will be. Root Insurance does not insure high-risk or "bad" drivers and focuses on insuring good drivers with clean driving records. The app uses machine learning to determine whether a user is a driver or a passenger and offers a discount of up to 10% for focused driving if the user avoids using their phone while driving.
Safe driving habits are one of the best ways to save on car insurance. Following the speed limit, not drinking and driving, and defensive driving are some ways to improve safety on the road and lower insurance premiums.
The Safe Driver Insurance Plan (SDIP) is a point-based system that lowers rates for good drivers and increases rates for unsafe drivers. The SDIP may be used by insurance companies to adjust auto insurance premiums based on a driver's record.
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Root Insurance's customer service and reviews
Root Insurance is a relatively new insurance company, founded in 2015. It offers a unique pricing model that rewards users for good driving. The company uses a usage-based insurance app that tracks driving behaviour—speed, braking habits, mileage, etc.—to determine insurance quotes. This means that the better you drive, the more you could save. The app also provides a Driver Scorecard that allows users to keep track of their scores and get tips to improve them.
Root Insurance has received mixed reviews. While most customers claim they received lower rates with a new Root policy, they also report that contacting customer service with claims can be difficult. Many tasks with this insurance company are done through the Root Insurance app, making speaking to a live person challenging. However, some customers have praised Root Insurance's customer service, with some describing it as "amazing" and "friendly". The company also provides lightning-fast claims service, typically settling claims within seven to ten days, which is well below the industry average of several weeks.
Root Insurance's customer service team can be reached by phone Monday to Friday, 9 am to 8 pm ET, and they aim to respond to all emails within 48 hours. The company also offers 24/7 claims filing in the app or online, and customers can request roadside assistance in the app when opting to include it in their policy.
- "I saved around $90 per month going to Root. I also had a claim and they got back to me within a day. Great customer service!"
- "I love that Root is so much more affordable than all the other insurance companies I've gotten quotes from. We have better coverage and more options and are saving $60/mo."
- "My claims process was super easy, and my adjuster kept me in the loop every step of the way."
- "I am absolutely in love with Root! It's quick, easy, and completely affordable."
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Frequently asked questions
Yes, Root Insurance tracks phone usage through a telematics tracking system that collects information about your car and how you’re performing on the road. This includes data such as speed, braking habits, mileage, driving times, and route consistency.
Root Insurance uses the data it collects to determine insurance rates and offer discounts for safe driving. The company states that it uses machine learning to distinguish between drivers and passengers and that it does not sell users' personal data.
Other insurance companies that offer usage-based insurance include Progressive Insurance, State Farm, Allstate, and Nationwide.
