Auto Insurance
3 min read

The Difference Between Root And LOOP

Published on
August 29, 2021

Established Insurers

The auto insurance industry is dominated by a handful of companies that have done very little to innovate or improve the lives of their customers. The top 5 insurance companies hold more than 50% of the market and are on average 90 years old. Root and LOOP are relatively small and new insurance companies, and while we have similarities, LOOP is founded on completely different principles.

What is Root?

Root is an auto insurance company founded in 2015 with the idea of pricing drivers based on their driving behavior. They aim to price people based on how risky they are behind the wheel through the use of telematics data by way of your mobile device; in other words, you download their app and your phone communicates with them to measure how good or bad of a driver you really are. This is an improvement in pricing because it begins to address the archaic and inefficient methods used by the likes of Geico and Progressive whose evaluation of risk is based on a demographic questionnaire that has very little to do with the likelihood that you’ll get in an accident. Which begins to uncover the deeper issue with auto insurance companies and the way they measure risk and price drivers.

What is LOOP?

Root was founded because telematics data and machine learning technology made it possible, LOOP was born because equity demanded it. Similar to Root, LOOP prices you based on your driving behavior, and allows you to do everything: get a quote, a binding policy, start a claim, increase your coverage, pay your bill, etc. all through an app on your phone. LOOP is very much a technology company. Where LOOP differs completely from not only Root but the entire insurance industry as a whole is in our mission. While the older companies are based on demographics, and unlike Root which is data driven, LOOP is empathy driven.

How we are different: Our Mission


was not founded to disrupt the auto insurance industry because technological advancements allow it, LOOP exists because we believe we can revolutionize the way we move. Our DNA isn’t grounded in incremental improvements but in complete overhaul, and our guiding principle is to Measure What Matters. So how do we do it? By addressing the deeper issue—that auto insurance is inherently biased.

Our Promise

Our promise is simple, to create fair and inclusive auto insurance.

If you are not:

  • Married
  • Homeowner
  • High income
  • College educated
  • White collar

You are considered “Non Standard” and are penalized and not given the discounts “Preferred” customers get. We at LOOP have a problem with that and we want ALL the SMOKE. 

Data shows that lower income and lower credit, as well as renters and blue-collar workers on average pay more for insurance regardless of driving behavior and history. Think about that for a second, someone who has a history of accidents will still pay less than you simply because of the type of work they do, and because their level of income or education is considered “Preferred”.

At LOOP we do not care about:

  • Credit
  • Occupation
  • Income level
  • Homeownership

LOOP will never stereotype or discriminate against you because you rent, or don’t work an office job. We aim to serve everyone equally and price you fairly and that is why we are different.



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