Loop insurance review 2024
-
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .
At a glance
Bankrate's take
Loop Insurance promises equitable rates based on how you drive, but coverage is limited to Texas and customer reviews are difficult to find.
- Weights driving habits over standard rating criteria like credit
- Roadside assistance and rental reimbursement now available
- Coverage is limited to Texas
- No third-party ratings from J.D. Power or NAIC
- Only insures vehicles valued up to $80,000
New
In February 2024, Loop Insurance announced the launch of its roadside assistance product, which offers standard emergency roadside assistance for $10/month.
In September 2023, Loop Insurance partnered with Quiq, an artificial intelligence company that utilizes generative AI to provide a conversational customer experience. Through the partnership, Loop will use AI chatbots to help service the needs of customers, improving response time.
We want to know what you think about Loop
Do you have experience with Loop? Let us know your thoughts.
Loop car insurance review
Bankrate’s insurance editorial team investigated publicly available information about Loop Insurance, a Texas-based insurtech startup promising equitable insurance pricing. Loop’s pricing model is based on telematics, which uses driving data rather than demographic factors to estimate driver risk. For some drivers, this pared-down pricing model and socially conscious approach to insurance could be a strong advantage.
Loop, a certified B-Corp, calls itself a “mission-based car insurer” and positions its pricing model in opposition to systemic discrimination against minorities in the traditional insurance industry. Unlike most car insurance companies, Loop does not collect data on customers’ education level, credit history or occupation. Instead, the company focuses on two rating factors: “where you drive and how you drive.” Using that model, Loop offers standard coverage options, including liability, comprehensive and collision coverage, along with two add-ons: rental reimbursement coverage in partnership with Enterprise and roadside assistance.
Pros and cons of Loop car insurance
When obtaining car insurance quotes, understanding the pros and cons of potential companies may help you make a more informed decision. Since Loop was founded in 2020, it does not have the same depth of information or brand name power as its competitors. However, it may still be a good option for many Texans who want to save money on auto insurance. Below are some pros and cons our Bankrate insurance editorial team identified.
Pros
- B Corporation status may appeal to policyholders focused on using their buying power to promote social and environmental change
- Rates are based on driving data rather than non-driving factors
- Policy can be managed entirely online through website or mobile app
Cons
- Only available in Texas
- No financial strength rating from AM Best
- No local offices
Loop car insurance cost
Loop Insurance claims to offer more fair insurance prices than other companies — but due to the carrier’s limited size and recent entry into the market, no average premium data is currently available to test that claim. Because Loop’s rates are based directly on driving data, your personal driving habits will determine the car insurance quote you get from Loop.
Comparing personalized rates can help to estimate whether Loop’s pricing is competitive for your profile. Currently, the average cost of car insurance in the U.S. is $621 per year for minimum coverage and $2,278 per year for full coverage. In Texas, which is the only state where Loop is currently available, the average annual cost of minimum car insurance is $680 while full coverage averages $2,404.
Loop customer satisfaction
Determining how well Loop Insurance meets customer needs is challenging. Loop has not been reviewed by J.D. Power for customer satisfaction or Standard & Poor’s (S&P) for financial strength yet, since coverage is so newly available. However, Loop notes on its website that its policies are backed by Hannover Reassurance Company of America, a large reinsurer with an A+ (Superior) AM Best financial strength rating.
If the company begins to expand its coverage options and area, more Loop insurance reviews and ratings may become available.
Loop car insurance discounts
Fair pricing is built into Loop’s business model, and its car insurance rates are based on how you drive. Loop still offers a few additional ways to save on auto insurance, including the following discounts:
- Safe driving: Loop offers discounts to drivers who have at least six months of prior coverage, three years without violations and five years without accidents.
- Advanced technology discount: Loop offers tiered discounts for drivers with electric or hybrid vehicles or any vehicle equipped with automatic emergency braking.
- Paid in full discount: If you pay your entire Loop premium in one payment, you might save up to 20 percent. Policyholders who pay half their premium upfront may save 10 percent.
- Vehicle usage discount: Your Loop car insurance price may vary depending on how you use your vehicle. You may pay less if you aren’t regularly commuting, for example.
- Paperless discount: Drivers may save on their insurance by forgoing paper policies and using electronic documents.
Compare Loop with other insurers
Comparing rates and coverage offerings from several companies may be a good strategy to find the best auto insurer for you. This might help you find the cheapest car insurance and identify a company that meets your needs. If you’re interested in Loop but considering other options, you might want to check out these similar companies:
Loop vs. Lemonade
Lemonade started as a home and renters insurance company but has since expanded into the auto insurance market. Like Loop, Lemonade boasts impressive technology and fast claim payments. Lemonade is also a B-Corp and has a robust social giveback program. Lemonade car insurance is currently only available in Illinois, Ohio, Oregon, Tennessee and Texas, but the company is expanding. Loop and Lemonade are similar in that they both price their policies primarily based on driving data rather than traditional rating metrics, but Lemonade is a more established carrier.
Learn more: Lemonade Insurance review
Loop vs. Root
Root takes the driving habits-based rating system a step further by asking interested shoppers to take a driving test before even offering a quote. By only offering coverage to drivers that are deemed safe based on the results of the driving test, Root may be able to keep rates lower. Root currently uses credit as a rating factor, although it plans to stop this practice by 2025. Root is available in 34 states, far surpassing Loop’s Texas-only coverage. However, Root is not a Certified B-Corp, so Loop may appeal to more socially conscious shoppers.
Learn more: Root Insurance review
Loop vs. Clearcover
Like the other companies on this list, Clearcover boasts impressive technology and fast claim payments. Clearcover’s quotes, policy servicing and claims are done mainly through its mobile app, although help is available by phone if you need it. Clearcover is available in 20 states, so it could be appealing to those outside Texas. Clearcover claims it offers low rates due to its lack of advertising, but Loop might be a better choice if you live in Texas and prefer the innovative pricing model.
Learn more: Clearcover Insurance review
Why you can trust Bankrate
Read our full methodologyOur insurance editorial team includes licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth Loop insurance review.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
Is Loop a good insurance company?
Loop may be a good insurance company for Texas drivers who prefer to have their insurance costs based directly on their driving habits, or those who want to work with a socially conscious insurer. However, evidence of customer experience is still thin on the ground as Loop establishes its footprint in the industry, and anyone who prefers to do business in person will likely prefer an insurer with physical offices.
What are real-life customers saying about Loop?
With a company as small and new as Loop Insurance, seeking out real customer voices is an essential way to gauge how successful the “mission-based” carrier’s mission is. Bankrate’s insurance editorial team took to forums and social media to investigate what real Loop customers have to say about their experiences and found mixed results on Reddit and the Apple and Google Play stores.
Loop recently released an updated version of the company’s mobile app, which customers use to manage their policy and track their driving. While the previous version of the app gained some positive reviews, reviews of the new app trend negative among both iPhone and Android users, who report significant bugs and difficulty communicating with company representatives.
We found Loop discussed primarily in local Texas subreddits as well as a subreddit discussing Black-owned businesses. While some customers reported getting low rates from Loop based on risk factors that other companies might price higher, others expressed dissatisfaction with the vision of John Henry, the company’s co-founder and co-CEO.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Loop company details
Loop offers a few different ways for customers to get in touch, including three separate phone numbers and online forms.
- Customer service/Roadside assistance: 1-844-544-5667
- Claims: 1-800-659-4918 or through the Loop mobile app
- Email help available through an online request form
- Live AI assistant available at help.ridewithloop.com/hc/en-us
State availability
Loop Insurance is only available in Texas. The company has stated that it plans to expand into 10 to 12 states in the future.
Loop tools and benefits
Loop is still a small company. This means that, as of now, Loop is relatively simple — it only offers car insurance and doesn’t provide additional products or services. While Loop does offer a mobile app, it does not have strong ratings, earning just 1.8 out of 5.0 stars for its recently updated iOS app. The company website has a auto-focused blog, though, which may help you navigate car ownership.
Frequently asked questions about Loop
