Jeffrey Wade
Root Insurance is a relatively new insurance company, founded in 2015, that offers car insurance with a unique pricing model. Unlike traditional car insurance companies, Root Insurance only insures good drivers and determines this by using telematics to track driving patterns and set premiums. The Root app uses mobile technology to measure driving habits and patterns, including braking, turning, safe hours, and phone usage, to calculate a driver's score and determine their premium. Root Insurance claims to offer lower rates than most other providers, rewarding good drivers with lower premiums and not insuring bad drivers.
| Characteristics | Values |
|---|---|
| Driving ability | The single largest factor Root considers when deciding a quote |
| Driving patterns | Tracked using telematics |
| Driving habits | Braking, turning, safe hours, safe phone use, route consistency |
| Driving behaviour | The rate is primarily based on this |
| Test drive score | High scores are not always enough to get a quote |
| Time of day | Driving late at night is discouraged |
| Location services | Must be turned on |
| App | Used to measure driving habits |
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What You'll Learn
Telematics and mobile technology
Telematics technology is a form of technology that can be installed in a vehicle or on a smartphone to capture and process details of a person's driving habits. Telematics devices, also known as car insurance trackers or safe driving apps, use GPS or an accelerometer to collect data about driving habits. This includes information such as braking, turning, speed, phone use, time of day, and number of miles driven.
Root Insurance relies on telematics to track driving patterns and determine insurance premiums. The company uses telematics technology to collect data and determine a customer's premium. The safer and more conscientious a driver is, the lower their rates will be. Root Insurance offers a mobile app that uses machine learning to determine whether the user is a driver or a passenger and provides a Driver Scorecard to help users keep track of their scores and get tips for improvement.
Telematics devices can also be physical devices installed in a car. An On-Board Diagnostics (OBD) tracker, for example, can be connected to a car's OBD-II port, typically found under the dashboard and steering wheel column. Mechanics use OBD trackers to pull key information to diagnose internal issues, but insurance companies can also use them to determine how many miles a person drove and provide safe driving discounts.
A Fleet Telematics System (FTS) is another example of a telematics device used for commercial vehicle fleets to send information to a business about a driver's on-the-road behaviour, such as driving speed and location data. This data helps companies ensure their drivers are safe and efficient.
While telematics can help drivers save money on their insurance premiums, it also raises privacy concerns as it allows insurance companies to track a person's driving behaviour and location.
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Driving ability and behaviour
Root Insurance offers a test drive period where the app measures a user's driving and provides a quote based on their driving skills and habits. The test drive takes a minimum of two to three weeks and sometimes longer if the user does not drive frequently. After the test drive, Root Insurance will either decline coverage or provide a quote. The company is known to refuse coverage to high-risk or "bad" drivers. Root Insurance does not cover individuals working as drivers for an app or while they are on the job.
The Root Insurance app provides a Driver Scorecard that allows users to keep track of their driving score and offers tips to improve their score. The app also includes a feature that allows users to earn rewards by referring friends who take the test drive and get a quote. Overall, Root Insurance's focus on driving ability and behaviour allows the company to offer lower premiums to good drivers by insuring individuals who are less likely to file a claim.
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Test drive scores
The Root Insurance test drive score is a key component of the company's determination of whether to offer insurance to a driver. The test drive typically takes a minimum of two to three weeks, and sometimes longer if the driver doesn't drive much. The Root app uses mobile technology to measure the driver's habits, including braking, turning, safe hours, and phone usage. The app also uses machine learning to determine whether the user is a driver or a passenger, so that the driver is not penalised for the driving habits of others. Root encourages drivers to drive like they normally would during the test drive, and the app will calculate a score based on the data collected.
The score is the primary factor in determining the insurance rate offered to the driver, with better scores leading to lower rates. Root's unique pricing model rewards good drivers with lower rates, and the company claims that its rates are already low, so drivers don't need many extra discounts. Root also provides tips within the app to help drivers improve their scores. While the test drive score is the main factor in determining the insurance rate, Root does consider other predictive factors, and a high test drive score does not guarantee a quote. Root does not insure high-risk or "bad" drivers, and it may not be able to offer a quote even with a high test drive score.
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Safe driving habits
Wear your seatbelt: This is one of the simplest and most effective ways to protect yourself in the event of a crash. Always remember to buckle up, and ensure that all passengers in your vehicle are also securely fastened.
Obey speed limits: Speeding not only puts you and your passengers at risk but also endangers everyone around you. It reduces your reaction time and increases the likelihood of more severe injuries in a crash. Obey posted speed limits, and remember that even driving at the speed limit can be unsafe if the conditions are poor, such as during bad weather or at dawn or dusk.
Avoid distracted driving: Distracted driving is a major cause of accidents. When driving, focus solely on the road and avoid any distractions, such as using your phone or other electronic devices, eating, adjusting the stereo, or programming your navigation system. Keep your eyes on the road and your hands on the wheel at all times.
Maintain a safe distance: Keep a safe distance between your vehicle and the one in front of you. This gives you more time to react and helps prevent crashes, especially in cases of sudden braking or unexpected obstacles.
Drive sober: Driving while impaired by any substance, including alcohol or drugs, is extremely dangerous and illegal. If you plan to consume substances that can impair your ability to drive, arrange for alternative transportation, such as a designated driver, rideshare, or public transportation.
Be cautious in hazardous conditions: Be extra cautious when driving in hazardous conditions, such as bad weather, icy roads, or areas with high pedestrian traffic. Slow down, use extra caution at intersections, and allow yourself more time to react.
Keep your vehicle well-maintained: Regularly check for vehicle safety recalls and keep your car in good working condition. Ensure your car has a well-stocked emergency kit, including blankets, a first aid kit, and jumper cables. Also, keep your phone fully charged, and always have enough fuel in your tank.
Rest and avoid late-night driving: Driving while fatigued can impair your judgment and reaction time. Whenever possible, avoid driving late at night, and ensure you get enough rest before getting behind the wheel.
Be a good role model: If you have teen or new drivers in your household, be a positive influence on their driving habits. Model safe driving behaviours, encourage good habits, and stay involved in their driving education.
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Insurance rates and savings
Root Insurance offers car insurance with rates that are primarily based on driving behaviour. The company uses telematics to track driving patterns and determine premiums, rewarding safe drivers with lower rates. Root Insurance claims that good drivers can save up to $900 a year compared to traditional insurance companies. The Root app uses machine learning to measure driving habits, including braking, turning, safe hours, phone usage, and route consistency. The app also provides a Driver Scorecard, allowing users to track their scores and receive tips for improvement.
While Root Insurance focuses on driving behaviour, other factors are also considered when determining rates. These include changes in location, vehicle, driving record, and surrounding environment, such as weather conditions and the frequency of accidents in the area. Root Insurance offers various coverage options, including roadside assistance, rental coverage, and SR-22 certificates for drivers with DUI charges. Additionally, Root provides add-ons such as uninsured motorist property damage and rental coverage for a flat rate per day or per accident.
Root Insurance's unique pricing model sets it apart from traditional insurance companies. By insuring only good drivers, Root can offer lower premiums and better coverage rates. The test drive period, which can last from two to six months, allows Root to assess an individual's driving skills and habits and determine their final rate. Root Insurance is currently available in several states, with plans to expand nationwide.
It is important to note that Root Insurance may not be the best option for everyone. The company's focus on insuring only good drivers means that high-risk or "bad" drivers may be declined coverage. Additionally, Root does not offer standard discounts or bundling options for auto and home insurance. Root Insurance's rates are tailored to each driver's behaviour and history, resulting in lower premiums for safe drivers. The company's commitment to fairness aims to provide the lowest rates while remaining consistent with state-filed rates and rules.
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Frequently asked questions
Root Insurance uses telematics to track your driving patterns and set your insurance rate. The company uses technology to collect data on driving ability, with factors such as braking, turns, route consistency, and safe phone usage to determine your premium. The safer and more conscientious you are behind the wheel, the lower your rates.
Root Insurance uses an app to measure your driving habits and patterns. The app uses mobile technology to track factors such as braking, turns, focused driving, and how much you drive. This information is then used to calculate your final insurance rate.
Root Insurance offers lower rates for good drivers, with savings of up to $900 per year compared to traditional insurance companies. The company also provides free roadside assistance and rental car reimbursement coverage, making it a cost-effective option for safe drivers.
