Auto Insurance: Root's Unique Coverage Explained

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 primarily considers a driver's history and habits to determine insurance rates, rather than relying on demographic information or credit scores. By focusing on good drivers and using technology to track driving behaviour, Root Insurance offers competitive rates and has received positive reviews for its savings and customer satisfaction. However, it has also faced criticism for its limited discounts, lack of availability in all US states, and complaints regarding policy cancellations and customer service.

Root Insurance's eligibility requirements

Eligibility Requirements for Root Insurance

Root Insurance is a relatively new insurance company, founded in 2015, that offers auto insurance coverage. The company's main differentiating factor is its focus on insuring only good drivers, resulting in more affordable rates for its customers. While Root Insurance primarily caters to safe drivers, there are still several eligibility requirements that potential customers should be aware of:

• Driving History: The most critical factor in determining eligibility for Root Insurance is an individual's driving history. The company uses a mobile app to collect driving data during a test drive period, analysing factors such as braking, speed, turns, times of day, miles driven, and driving routes. A clean driving record, free of accidents and tickets, is essential for receiving a favourable quote.
• Test Drive: Root Insurance requires all potential policyholders to undergo a test drive, which can last up to four weeks. During this period, the Root app collects driving data to evaluate an individual's driving skills and habits. The app must be installed, and location services must be enabled to track driving behaviour accurately.
• State Availability: Root Insurance is not available in all U.S. states. Currently, the company offers coverage in 34 states, including Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, and others. The company is working to expand its availability to other states.
• Vehicle Type: Root Insurance primarily focuses on personal vehicle insurance. At this time, they do not cover motorcycles, ATVs, exotic vehicles, or commercial vehicles.
• Age: While Root Insurance does not explicitly mention age restrictions, they do insure teenagers who are good drivers. By evaluating driving behaviour rather than solely relying on demographics, Root Insurance can offer more competitive rates to younger drivers.
• Credit Score: Root Insurance aims to eliminate factors such as credit scores from their pricing model. However, they do mention that they take into account "several standard factors that are mathematically predictive of risk or fraud." It is unclear if credit scores are among these factors, but Root Insurance expresses a commitment to eliminating as many factors as possible as technology and artificial intelligence advance.
• Additional Drivers: Root Insurance allows policyholders to add other people to their policy as long as they live at the same address. Adding additional drivers can help determine the discount offered by Root Insurance.
• Vehicle Ownership: Root Insurance caters to both owners and lessees of vehicles. However, it is important to note that Root Insurance does not currently offer gap insurance, which is typically required by leasing companies. Separate gap insurance may need to be purchased.
• Vehicle Registration and Insurance: Root Insurance can provide insurance coverage for vehicles with out-of-state registration as long as the company is available in the state where the vehicle is primarily located. Root Insurance can also assist in cancelling any previous insurance policies and transferring coverage between states if Root is available in the new state.
• Payment Methods: Root Insurance offers flexible payment options, allowing customers to pay monthly or every six months. They accept credit cards and Apple Pay.

Overall, Root Insurance's eligibility requirements centre around evaluating an individual's driving skills and habits through their test drive period. The company's focus on insuring good drivers allows them to offer competitive rates to eligible customers.

How Root Insurance calculates rates

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 No.1 factor in determining your rate with Root Insurance is your test drive score.

Root uses smartphone technology to measure your driving behaviour and offer a rate based primarily on how safe you are behind the wheel. The GPS and accelerometer built into your smartphone are engaged during the test drive period, allowing the Root app to determine the number of hours you drive, your average speed, braking distance and pressure, mileage, and other factors. The app also takes into account the times of day when you drive.

After the test drive period, Root will either decline coverage or provide a quote. Root does not cover high-risk or "bad" drivers, and so denied coverage is one of the biggest complaints about the company. However, if you qualify for a quote based on your driving habits, you will usually pay lower premiums compared to other insurance providers.

While Root Insurance primarily uses your driving record to determine your rate, it also considers other factors, such as your credit score, age, and marital status, which are mathematically predictive of risk or fraud. However, Root has committed to removing credit scoring from its pricing model by 2025.

In addition to offering lower rates for good drivers, Root Insurance also provides several benefits, including savings of up to $900 per year, roadside assistance included in every policy, a focused driving discount of up to 10%, free Lyft credits on select holidays, and a referral program where you can earn cash offers.

Root Insurance's customer satisfaction

Root Insurance is a relatively new insurance company, founded in 2015. Root offers affordable car insurance by primarily insuring good drivers with clean driving records. The company uses a mobile app to track and analyse driving behaviour, including braking, speed, mileage, and driving routes, to determine insurance rates. Root Insurance has received mixed reviews, with an average of 4.7 out of 5 stars on the App Store, and 3.4 out of 5 stars on Android devices. While some customers praise the company for its low rates and easy claims process, others have complained about higher-than-average rates and difficulty in reaching customer service. Root has an A+ rating from the Better Business Bureau but has a higher-than-expected number of complaints according to the National Association of Insurance Commissioners. Overall, Root Insurance offers a unique service that can provide significant savings for safe drivers but may not be the best option for those with less-than-perfect driving records.

Customer Satisfaction:

Customer Reviews and Ratings

Root Insurance has received mixed reviews from customers, with some praising the company for its low rates and easy claims process, while others have expressed dissatisfaction with higher-than-average rates and difficulty reaching customer service.

#### App Store and Google Play Reviews

The Root Insurance app has received positive reviews on the App Store, with an average rating of 4.7 out of 5 stars based on over 65,000 ratings as of January 2024. Customers have praised the app for its ease of use, cost savings, and convenient features.

On Google Play, the Root Insurance app has received lower ratings, with an average of 3.4 out of 5 stars on Android devices. Android users have complained about the app gathering driving data even when they were passengers, resulting in higher insurance premiums. However, it's worth noting that Root's customer service team has actively responded to these reviews and offered assistance.

Third-Party Ratings and Complaints

In terms of third-party ratings, Root Insurance has received an A+ rating from the Better Business Bureau (BBB), indicating its commitment to resolving customer complaints. However, customers have given the company lower ratings on the BBB platform, with an average of 1.15 out of 5 stars.

According to the National Association of Insurance Commissioners (NAIC) Complaint Index, Root Insurance has a score of 1.2, indicating that the company has received 1.2 times the expected number of complaints for a company of its size. This suggests that Root may need to improve its customer service and claims handling processes.

Customer Testimonials

A review of customer testimonials provides a mixed picture of Root Insurance's performance:

• "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."
• "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."
• "Filed a claim and received payment 7 days later!! Answered all of my questions on the spot. Great customer service, great company."
• "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."
• "For better coverage, with an easier sign-up process, you really can’t beat it."
• "I've been using Root for over a year. Amazing coverage and so easy to switch to a new vehicle. Customer service is amazing here as well. I know I won't be switching any time soon."
• "Fast customer service. Friendly staff. Awesome insurance. Love it!"

Root Insurance's customer complaints

Root Insurance is a relatively new insurance company, founded in 2015. It offers affordable car insurance by only insuring good drivers. Root Insurance uses technology to set rates based on driving habits. The company has received mixed reviews, with an average of 4.7 out of 5 stars on the App Store and 3.4 out of 5 stars on Android devices. While some customers praise the company for its low rates and easy claims process, others have lodged complaints about various issues.

One common issue raised by customers is the difficulty in contacting live customer support. Most tasks with Root Insurance are done through the company's mobile app, which can be inconvenient for those who prefer speaking to a live person. This has resulted in complaints about poor customer service, with the company having a 1.2 rating on the National Association of Insurance Commissioners (NAIC) Complaint Index, indicating that they receive more complaints than a company of their size should.

Another issue that has been raised by customers is the accuracy of the driving data collected by the Root Insurance app. Some Android users have complained that the app gathered driving data even when they were passengers in the car, resulting in higher premiums. Root Insurance has responded to these reviews and offered their help, but the issue has not been fully resolved.

Customers have also complained about unexpected premium increases and unauthorized withdrawals from their accounts. In one case, a customer reported a sudden and unjustified increase in their car insurance premium, and despite expressing their inability to pay the inflated amount, Root Insurance withdrew money from their account without permission.

Additionally, Root Insurance has been accused of providing limited discounts compared to other insurance companies. While they offer savings for good drivers, they don't have discounts for students with good grades, employees of the federal government, or military veterans. This may be a disadvantage for those who fall into these categories.

Overall, while Root Insurance can offer significant savings for safe drivers, there have been several complaints lodged against the company regarding various issues. These complaints highlight potential challenges and frustrations that customers may encounter when using Root Insurance.

Root Insurance's discounts

Root Insurance is an auto insurance company that bases its rates primarily on driving behaviour. It uses mobile technology to measure driving habits and patterns, such as mileage, speed, braking activity, time-of-day activity, phone usage, and unusual phone activity while the car is in motion. This data-driven approach allows Root to offer discounts to good drivers, rewarding them for their safe driving habits.

Safe Driver Discount:

Root Insurance offers savings of up to $900 a year for good drivers. The company determines driver safety by looking at driving records and patterns. For instance, drivers with a history of moving violations, at-fault accidents, or a DUI conviction are considered higher-risk and pay more for insurance. Conversely, safe drivers are rewarded with lower rates.

Driver Status Discount:

Full-time students with excellent grades may be eligible for a discount on their car insurance. Root offers 5-25% lower rates for good students who can provide proof of full-time attendance and transcripts showing at least a "B" average. Additionally, some insurance companies offer away-from-home student discounts, military discounts, and professional or academic organization discounts.

Vehicle-Specific Insurance Discount:

Root Insurance provides discounts for vehicles with passive restraint systems, such as seatbelts and front airbags. The discount can be up to 30% off the Medical Payments or Personal Injury Protection premiums. The insurer automatically calculates this discount using the vehicle identification number (VIN).

Usage-Based Discount:

Root offers a usage-based discount without requiring the installation and return of an OBD device. Instead, users can simply download an app on their phones to measure their driving behaviour over a few weeks. Safe driving habits can lead to significant reductions in auto insurance premiums.

Policy-Specific Discount:

Root Insurance also offers discounts when multiple insurance policies are bundled. Customers can save on renters or homeowners insurance when bundled with a car insurance policy. Additionally, paying the policy premium in full instead of making monthly payments can result in further discounts.

Root Insurance stands out by offering built-in discounts based on driving behaviour, removing the need for customers to ask for savings. The company's data-driven approach ensures that good drivers are rewarded with fair and affordable rates, making it an attractive option for those seeking auto insurance.

Frequently asked questions