Root Insurance sets itself apart from competitors by offering individualized auto insurance. Rather than concentrating on credit scores, driving records, or demographics, the corporation sets insurance premiums mostly based on driving patterns.
In this article, Business Yield examines Root Insurance reviews to see what sets the company apart from other auto insurance companies.
Root Car Insurance Review
Root Insurance is an InsurTech business that provides usage-based vehicle plans and a more contemporary consumer experience. Alex Timm and Dan Manges launched it as a business in 2015, and it will go public in 2020.
Root takes advantage of the reality that the majority of well-known insurance providers fall short of the convenience and customization demands of today’s consumers. It is among the first insurance companies to develop an app that can streamline the whole application process for vehicle insurance.
Instead, Root’s exam helps the business concentrate on the following:
- Braking habits
- Speed of turns
- Total miles driven
- Driving routes
- Phone usage
- Time of day on the road
You might discover that, for the same level of coverage, your insurance rates with Root Insurance are far less expensive than those of other providers if you drive safely during your evaluation.
On the other hand, if you do poorly, Root might not provide you with any coverage. In order to minimize claim expenses and client rates, the corporation declines to insure drivers who pose a high risk.
How does Root Insurance work?
You need to download Root Insurance’s mobile app, which works with most Android phones and iPhones 6 and up, in order to receive a quote. You can download it via the App Store or Google Play.
The next step is to create an account. Standard identifying details, including your name, email address, residence, and date of birth, are requested by Root.
Depending on where you live, the process’s next step may vary. In certain states, Root Insurance permits you to apply for insurance right away—even before passing its driving exam.
If so, you are able to have Root Insurance pay for you to take the test. After you finish it, the insurance provider will inform you if your coverage can be continued at the current rate, a reduced one, or not at all.
Before you can continue, you must pass Root’s driving exam if you reside in a state that isn’t eligible for the day one option. Once more, Root will evaluate your performance and provide you with an estimate or notify you if they are unable to insure you.
Without any further equipment, you may start the test from the Root Insurance app. Typically, it collects data for a few weeks, although the amount of time it takes to do so can change depending on how often you drive.
According to Root Insurance, the software can distinguish between you being a driver and a passenger. This responds to a common grievance regarding insurance apps that track usage.
Furthermore, you don’t have to keep the app open to take the test. You can let it run in the background without worrying about it taking your attention away.
You’ll be given a scorecard during the test that scores your performance on a scale of 1 to 10 for a variety of categories, which will help you make real-time improvements to your driving habits.
Policies Available on Root Insurance
#1. Auto Insurance
You can create your own auto insurance coverage using the Root Insurance app. You select the level of coverage you desire from the following common auto insurance categories:
Liability: This covers any harm you inflict on third parties as a result of an accident that you caused.
Collision: This covers the cost of fixing damage to your car resulting from an accident that you caused.
Medical Payments: This covers the medical expenses for you and any other passengers in your automobile following a collision.
Comprehensive: This covers damage to your car resulting from events other than accidents, such as hailstorms and burglaries.
Uninsured motorist protection: In the event that an uninsured motorist causes an accident, this coverage will reimburse your expenses.
#2. Homeowners Insurance
Root insurance includes liability in the event that someone is hurt on your property, medical payments, and damage to your house and possessions. Root homeowners insurance packages include temporary housing costs if you have to move while your house is being repaired.
#3. Renters Insurance
Root Insurance provides renters insurance if you rent a house. Both theft and damage to your possessions are covered by these plans. This covers theft that occurs while you’re traveling. Root renters policies can cover temporary housing for up to a year if you have to reside somewhere while your rental property is being repaired for damage.
Pros of Root Insurance
#1. Discounted auto insurance for careful drivers:
Root Insurance bases the majority of its pricing strategy on the driving habits of its clients. Root Insurance asserts that its discounts are greater than those of other auto insurers for safe driving.
#2. Quick online quotation request:
Using the Root Insurance app or website, you may request a quote in a matter of minutes. You don’t have to talk to anyone or provide any papers.
#3. You can start temporary coverage right away:
The Root Insurance app will let you know if you qualify for temporary coverage when you apply for a quotation. If so, you can get insurance and start driving while you finish the test.
#4. All auto policies offer roadside assistance:
Roadside help is provided by Root Insurance at no additional cost in case of emergencies such as locking your keys in the car or requiring a tow truck. Policies allow for three incidents per six-month policy cycle, with coverage up to $100 per incident.
#5. Fantastic web and mobile experience:
Nearly all of your policy needs can be handled online by Root Insurance because it is a mobile-first firm. This covers locating your insurance card, paying premiums, modifying your coverage, and submitting claims. One of Investopedia’s top digital insurance companies for 2023 was Root Insurance, which took first place in the vehicle insurance sector.
Cons of Root Insurance
#1. It requires every applicant to take a test drive:
You must pass a three-week driving test administered by Root Insurance, regardless of your prior driving record. While using the mobile app on your phone while driving, the test is still underway. Based on the results of the test drive, Root Insurance may decide to raise your premiums or possibly reject your application.
#2. A high volume of client complaints:Â
According to the National Association of Insurance Commissioners, Root Insurance has received many more complaints over the last three years than one might anticipate for an insurer of its size. This can be the disadvantage of an online-only encounter.
#3. Limited insurance options:
In addition to auto insurance, Root Insurance is starting to offer homeowners’ and renters’ insurance. It does not, however, provide coverage for other vehicles, such as boats, RVs, and snowmobiles, nor does it provide life or business insurance.
#4. Only takes credit cards and Apple Pay:
Checks or ACH bank transfers are not accepted as forms of payment for Root insurance policies. Additionally, Apple Pay is the only mobile wallet that may be used.
#5. Not accessible in every state:
Alaska, Florida, Hawaii, Idaho, Maine, Massachusetts, Michigan, Minnesota, North Carolina, and New Hampshire are states where Root Insurance does not offer policies. Washington, Wyoming, South Dakota, Vermont, New Jersey, New York, Rhode Island, and the District of Columbia
#6. Absence of in-person assistance or agents:
The only ways to get in touch with Root Insurance if you have questions about your policy or would need to submit a claim are via phone, email, or the mobile app. It does not have physical branches or representatives.
Root Car Insurance Discounts
When compared to their prior rates with other firms, Root promises to save its drivers up to 50%. As its prices are already so low, Root doesn’t provide many more savings.
But there are additional advantages that other insurers don’t frequently provide. All insurance comes with free roadside assistance, and on holidays like St. Patrick’s Day, when consumers might need a lift home, the firm will pay for Lyft rides. Additionally, you will both receive a cash incentive if you refer a friend to Root, just like many startups and app-based businesses do.
It’s important to note that Root’s approach can help teenagers who drive safely. You can take the exam and receive coverage under your policy for every member of your family. The household rate is averaged if every person takes the test. Therefore, having adults in the home who are competent drivers can help reduce the average rate, even if your young driver isn’t flawless. Teenagers may still pay more with Root if they choose not to take the exam because rates for other drivers in the household on your policy who choose not to take the test will be determined using conventional demographic data.
Is Root Car Insurance legit?
Root Insurance is a respectable provider of insurance. Its principal legal body is admitted in Ohio, which implies that the Ohio Department of Insurance oversees it and that it has a license from the state.
Furthermore, the company was listed on the NASDAQ stock exchange in 2020, and its shares are now traded there. It has an A+ rating on the site and is also accredited by the Better Business Bureau (BBB).
The business isn’t as well-known as some of its more established rivals, though. It has never been rated by AM Best for financial strength or by J.D. Power for customer satisfaction.
Root Car Insurance Customer Service
Root Insurance provides email and phone customer care. Its customer care representatives are available by phone from 9 a.m. to 8 p.m. ET, Monday through Friday. Its insurance agents can also be reached by phone to talk about policy setup. Root Insurance states that it will respond to emails within 48 hours.
You can submit a claim at any time of the day or night using the Root Insurance website or mobile app. During regular business hours, you can also give the claims department a call and talk to someone.
Root Car Insurance Colorado
Root car insurance in Colorado is reasonably priced, from Colorado Springs to Grand Junction to Denver to Fort Collins. After completing the test drive and downloading the Root app, find out how much you may save on your auto insurance quote. Note that good drivers could save hundreds of dollars on high-quality auto insurance.
Is Root a real car insurance?
Root Insurance is a reputable business, but not every driver will be eligible for coverage.
Is Root coverage good?
We believe Root Insurance can be beneficial for usage-based insurance, giving it a rating of 7 out of 10. It is unique in the auto insurance market because the company bases insurance prices on an individual’s driving behavior. In addition, roadside assistance and a mobile app that streamlines the bids and claims procedures are included with Root coverage.
Why is Root so cheap?
Its premiums are lower for the drivers it does insure since it excludes high-risk drivers from coverage. When compared to their prior rates with other firms, Root promises to save its drivers up to 50%. Additionally, Root doesn’t provide many more reductions because its prices are already so low.
Does root insurance raise rates after 6 months?
Your Root insurance premium may go up for the following coverage term after six months. Although your driving is the primary component that determines your rate, other factors may have an impact and raise your premium.
Why am I not eligible for root?
Not every driver is eligible. Part of the reason Root won’t insure negligent drivers is that the business maintains that roughly 45% of accidents are caused by 30% of drivers. This implies that drivers who have a spotty driving history or poor driving behaviors won’t be allowed to use Root.
Why does root insurance keep going up?
Your Root insurance premium may go up for the following coverage term after six months. Although your driving is the primary component that determines your rate, other factors may have an impact and raise your premium.
Does root insurance track your driving?
Root Insurance uses telematics to monitor your driving habits. While several insurers are providing their subscribers with telematics technologies as an option (Progressive Snapshot, for instance), Root is the only one to use telematics as the principal rating mechanism.
Who owns Root car insurance?
Founded in 2015 by Alex Timm and Dan Manges, Root Insurance is an insurance technology firm that provides auto insurance. Its headquarters are in Columbus, Ohio.
Does Root cancel your insurance?
At the end of a policy term, Root allows insurers the option to terminate policies or decide not to renew. When there are too many claims filed or after several incidents, non-renewal may happen. However, more urgent cancellations may be the consequence of major problems like insurance fraud or losing one’s driving privileges.
Does Root Insurance have full coverage?
In need of insurance with complete coverage? In the industry, “full coverage” literally doesn’t exist; rather, the phrase typically denotes the combination of liability (including property damage and bodily injury), collision, and comprehensive insurance. Root provides each of these plans.
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