Root Insurance takes a fundamentally different approach to car insurance — it prices policies based primarily on how you actually drive, tracked through your smartphone, rather than demographics like age, gender, credit score, and ZIP code. Traditional insurers like GEICO, State Farm, Progressive, and Allstate use algorithms that weight those demographic factors heavily. This comparison explains how Root’s model works, who it benefits, and whether an insurtech startup can compete with industry giants on coverage and claims.
TL;DR:Root can save safe, low-mileage drivers 20-50% over traditional insurers, especially those with low credit scores. Traditional insurers are better for drivers who want guaranteed acceptance, broader coverage options, local agents, and proven claims handling. Root is a gamble — you might save a lot, or you might be declined.
How Root Pricing Differs from Traditional Insurance
Traditional Insurer Pricing Model
Factor
Weight in Rate Calculation
Credit score
Heavy (30-40% of rate in many states)
Driving record
Heavy
Age
Heavy (young/old drivers pay more)
Gender
Moderate (where legal)
Location (ZIP code)
Heavy
Vehicle type
Moderate
Marital status
Moderate
Education level
Light-Moderate
Occupation
Light-Moderate
Years of experience
Moderate
Coverage history
Moderate
Root Insurance Pricing Model
Factor
Weight in Rate Calculation
Driving behavior (test drive data)
Primary (~70-80% of rate)
Vehicle type
Moderate
Location (state/region)
Moderate
Driving record (historical)
Light
Credit score
Not used (in most states)
Age
Minimal
Gender
Minimal
Education/occupation
Not used
Marital status
Minimal
The implication: if you have a low credit score but drive safely, Root will price you significantly lower than traditional insurers. If you have excellent credit and a clean record, traditional insurers may be cheaper because they reward your credit history.
Rate Comparison: Root vs Traditional Insurers
Average Annual Premiums (Full Coverage)
Driver Profile
Root
GEICO
State Farm
Progressive
Safe driver, good credit, age 30
$1,280
$1,240
$1,560
$1,480
Safe driver, poor credit, age 30
$1,340
$2,080
$2,240
$1,960
Safe driver, no credit history, age 25
$1,520
$2,340
$2,680
$2,100
Average driver, good credit, age 35
$1,680
$1,340
$1,640
$1,520
Safe driver, low mileage (<5K mi/yr)
$980
$1,200
$1,480
$1,380
Aggressive driver, good credit
$2,800+ or declined
$1,480
$1,680
$1,620
Recent DUI, good credit
Likely declined
$3,600
$4,200
$3,400
Key takeaway: Root’s model hugely benefits safe drivers with poor or no credit — savings of $600-$1,200/year compared to traditional insurers. But average or aggressive drivers may pay more or be declined entirely.
Who Saves the Most with Root?
Profile
Estimated Savings vs Traditional
Why
Safe driver, low credit score
$600-$1,200/year
Credit score isn’t factored
Low-mileage driver (<5,000 mi/yr)
$400-$800/year
Less driving = lower risk in Root’s model
Young driver with safe habits
$300-$600/year
Age penalized less than traditional
Rural area, safe driver
$200-$500/year
Less traffic = better driving data
New to US, no credit history
$500-$1,000/year
No credit penalty
Who Pays More (or Gets Denied) with Root?
Profile
Likely Outcome
Why
Aggressive driver, excellent credit
Pays more or declined
Driving data overrides credit advantage
Frequent highway commuter
Pays more
High mileage + traffic = higher risk
Night shift worker
May pay more
Late-night driving scored as higher risk
Delivery/rideshare driver
Likely declined
High mileage + commercial use
Driver with multiple claims
Likely declined
Risk too high for Root’s model
Coverage Comparison
Coverage
Root
GEICO
State Farm
Progressive
Liability
✓
✓
✓
✓
Collision
✓
✓
✓
✓
Comprehensive
✓
✓
✓
✓
Uninsured motorist
✓
✓
✓
✓
Medical payments / PIP
✓
✓
✓
✓
Rental car reimbursement
✓
✓
✓
✓
Roadside assistance
✓
✓
✓
✓
Gap insurance
✗
✓
✓
✓
New car replacement
✗
✗
✓
✗
Accident forgiveness
✗
✓
✓
✓
Custom parts coverage
✗
✗
✓
✓
Rideshare coverage
✓ (limited)
✓
✓
✓
SR-22 filing
✗
✓
✓
✓
Motorcycle / RV / boat
✗
✓
✓
✓
Total coverage options
Basic
Comprehensive
Comprehensive
Comprehensive
Root offers the core coverages but lacks many add-ons that traditional insurers provide. No gap insurance, no accident forgiveness, no SR-22, no multi-vehicle types. If you need anything beyond standard auto coverage, traditional insurers have a clear advantage.
The Test Drive Process
Root’s onboarding is unlike any traditional insurer. Here’s exactly how it works:
Step
What Happens
Timeline
1. Download the Root app
Create account, enter vehicle info
5 minutes
2. Start test drive
App begins tracking your driving
Immediate
3. Drive normally
Root collects 2-3 weeks of driving data
2-3 weeks
4. Receive your rate
Root calculates premium based on driving data
After test drive
5. Accept or decline
Buy the policy or walk away
Your choice
What Root Tracks During the Test Drive
Metric
What It Measures
Impact on Rate
Hard braking frequency
How often you slam the brakes
High (frequent = higher rate)
Rapid acceleration
How aggressively you speed up
Moderate
Phone usage while driving
Distracted driving detection
High (biggest penalty)
Time of day
Late-night driving (higher risk hours)
Moderate
Cornering speed
How fast you take turns
Light
Mileage / trip length
How much and how far you drive
Moderate
Speed relative to roads
Speeding detection
Moderate
Privacy concern: Root’s app has constant access to your phone’s accelerometer, gyroscope, and GPS during the test drive period. Some users are uncomfortable with this level of tracking. Traditional insurers don’t require this data (though usage-based programs like Snapshot and Drivewise are opt-in).
Claims Experience
Metric
Root
Traditional Avg (GEICO/SF/Progressive)
J.D. Power claims satisfaction
Not rated (too few claims surveyed)
856-882/1000
NAIC complaint index
2.84 (well above average)
0.80-1.32
Claims filing
App only
App, phone, agent, online
24/7 claims line
✓ (phone)
✓
Local agent support
✗
✓ (State Farm, Allstate)
Photo-based estimates
✓
✓ (most)
Average claim settlement time
10-14 business days
5-10 business days
Glass claims partners
Limited
Safelite + others
Rental car during repairs
Varies
Standard coverage available
Root’s NAIC complaint index of 2.84 is concerning — it means Root receives nearly 3x the expected number of complaints relative to its size. Common complaints include slow claims processing, disputes over fault determination, and difficulty reaching adjusters. Traditional insurers have decades of claims infrastructure; Root is still building theirs.
Financial Stability
Metric
Root
GEICO
State Farm
Progressive
AM Best rating
B- (Fair)
A++ (Superior)
A++ (Superior)
A+ (Superior)
Years in business
9 (founded 2015)
89
102
87
Profitability
Not yet consistently profitable
Highly profitable
Highly profitable
Highly profitable
Public company
Yes (ROOT on NASDAQ)
Subsidiary of Berkshire
Mutual
Public (PGR)
Risk of insolvency
Low-Moderate
Very Low
Very Low
Very Low
Root’s B- AM Best rating flags moderate financial risk. While the company isn’t going bankrupt tomorrow, its financial position is weaker than established insurers. AM Best’s A+ or A++ ratings on traditional insurers indicate extremely strong ability to pay claims.
Digital Experience Comparison
Feature
Root
GEICO
State Farm
Progressive
App rating (App Store)
4.6/5
4.8/5
4.8/5
4.7/5
Quote time
2-3 weeks (test drive)
~8 minutes
~10 minutes
~5 minutes
Policy management (app)
✓
✓
✓
✓
Digital ID cards
✓
✓
✓
✓
File claims via app
✓
✓
✓
✓
Pay bill (app)
✓
✓
✓
✓
Chat support
✓
✓
✓
✓
Agent available
✗
Phone only
In person (19,000+)
Independent agents
Root’s app is well-designed but the 2-3 week test drive before you can even get a quote is a major friction point. Traditional insurers give you a quote in minutes.
Who Should Choose Root vs Traditional
Choose Root If You…
Scenario
Why Root Wins
Low credit score but safe driver
No credit score in pricing — save $600-$1,200/yr
Low-mileage driver (under 7,000 mi/yr)
Root rewards infrequent driving
Young driver with safe habits
Less age penalty than traditional
Want rate based on driving, not demographics
Root’s core value proposition
Comfortable with app-based tracking
Required for pricing and management
New to the US with no credit history
Traditional insurers penalize no credit
Only need basic auto coverage
Root covers the essentials
Choose a Traditional Insurer If You…
Scenario
Why Traditional Wins
Want guaranteed acceptance
Traditional insurers always quote; Root can decline you
Need coverage add-ons (gap, accident forgiveness)
Root’s coverage is more limited
Have excellent credit
Traditional insurers reward good credit
Drive frequently or commute in traffic
Root may penalize high-mileage/traffic driving
Want an agent for claims support
State Farm, Allstate have local agents
Need SR-22 filing
Root doesn’t offer SR-22
Want a financially stable insurer
AM Best A+ vs Root’s B-
Need motorcycle/RV/boat insurance
Root only covers auto
Drive at night regularly
Late-night driving increases Root’s rates
Decision Framework
Your Situation
Best Option
Safe driver + poor credit
Root
Safe driver + good credit
GEICO or Progressive
Any driver + want agent support
State Farm or Allstate
High-risk driver
Progressive
Low-mileage + budget-focused
Root
Need comprehensive coverage
State Farm
Want fastest quote
Progressive or GEICO
Switching to Root (or Away from Root)
Switching from Traditional to Root
Download Root app and create an account
Complete the 2-3 week test drive (drive normally — don’t game it)
Receive your Root rate after the test drive
Compare Root’s rate to your current insurer (apples-to-apples coverage)
If Root is cheaper, buy the policy and set start date for your renewal
Cancel traditional policy after Root is active — never let coverage lapse
Keep expectations realistic on claims and customer service
Switching from Root to Traditional
Get quotes from GEICO, Progressive, and State Farm (online in minutes)
Compare coverage levels to your Root policy
Check for bundle discounts if adding home or renters insurance
Buy new policy and set start date
Cancel Root after new coverage is active
No cancellation penalty from Root
The Bottom Line
Root Insurance is a genuinely disruptive product for the right driver — if you’re safe, drive infrequently, and have poor or no credit, Root can save you hundreds to over a thousand dollars per year compared to traditional insurers. But Root comes with real trade-offs: limited coverage options, a weaker financial rating, higher complaint rates, possible denial of coverage, and no local agent support.
Traditional insurers (GEICO, State Farm, Progressive, Allstate) offer guaranteed acceptance, broader coverage, proven claims handling, and decades of financial stability. For most drivers, a traditional insurer provides better overall value when you factor in coverage breadth, claims reliability, and peace of mind.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
