R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license.
Lisa McArdle is an insurance editor who joined the Bankrate team in 2023. She has more than 15 years of experience writing, editing and managing content in a variety of industries, including insurance, auto news and pop culture.
Lisa McArdle is an insurance editor who joined the Bankrate team in 2023. She has more than 15 years of experience writing, editing and managing content in a variety of industries, including insurance, auto news and pop culture.
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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
What’s new with Loop?
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.
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 $678 per year for minimum coverage and $2,458 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 $724 while full coverage averages $2,492.
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.
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Answering a few quick questions to check your availability with Loop
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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.
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.
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.
Our 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.
Reddit
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.
Reddit User 1*
Dec 7, 2022
Loop is my current! They go by different...
"Loop is my current! They go by different standards than most insurance companies when figuring out how to charge you, and have discounts for save driving and larger payments. Currently about 130 for liability for me I think, but I'm a teen w an insurance lapse on record."
*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.
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
Loop is a Certified B-Corp, which means that sustainability and giving back are built into its business model. Loop says that its B-Corp status helps to ensure that it lives up to its mission to provide fair and unbiased car insurance pricing.
To start a claim with Loop, you can call 1-800-659-4918 or use the Loop mobile app. Loop notes that some claims can be paid instantly. However, some claims — especially more complex situations — are likely to be handled by a claims adjuster. An adjuster will review your coverage and the circumstances of the loss to determine coverage.
Loop allows customers to start policies online or through the Loop app. According to its website, Loop updates policy renewals with the driving behavior gained from the telematics app. Instead of using non-driving rating factors that may be biased, Loop utilizes driving behavior such as where and how you drive to make pricing more equitable.
No, Loop is not a temporary insurer. It writes policies for six-month terms. While it is possible to get short-term insurance that lasts for a few days or weeks or one month, experts advise against taking out such a policy. They typically cost more than a standard policy and don’t provide as robust coverage. Besides, you can cancel a standard insurance policy at any point during your coverage period.
Yes, Loop is a real insurance company. However, it’s relatively new (founded in 2020) and only available in Texas. Loop operates as a B-Corp, which means it complies with higher standards for sustainability and transparency. While Loop does not disclose the company that underwrites its insurance policies, it does disclose that it is backed by a large reinsurer with an A+ (Superior) AM Best financial strength rating.
Bankrate’s insurance editorial team tries to assign a Bankrate Score to every company that we review, but sometimes we’re not able to provide a star rating for insurers that work with third parties to underwrite policies. Because Loop is a new company with limited data available, and because it does not disclose the insurer that underwrites its policies, it does not currently have a Bankrate Score for its auto insurance product.
What policyholders are saying about Loop
Loop has 23 reviews
Dive into community reviews below and see what others think about Loop.
3.6
23
ratings
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate.
To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
70% of consumers recommend this insurer
Score breakdown
5 stars
22%
4 stars
48%
3 stars
13%
2 stars
0%
1 star
17%
Score by category
Overall rating3.6 / 5
Original cost3.7 / 5
Coverage3.9 / 5
Customer Support4.0 / 5
How we got these ratings
In May 2024, Bankrate collaborated with market research firm SliceMR to survey over 1,500 insurance customers nationwide, asking policyholders to rate their insurer’s cost, coverage, customer support and overall experience on a five-point scale. Bankrate and SliceMR collected and analyzed these customer ratings, along with website analytics and responses to three open-ended questions regarding customer experience. Responses are based on individual policyholders’ policy details and personal experience, and therefore cannot be verified for accuracy. Users received an incentive for their feedback. All ratings are unedited and have not been reviewed or approved by insurance carriers. User-generated ratings are separate from carrier Bankrate Scores — which are calculated based on our proprietary methodology — and may not match.
Community Reviews
See what users like you are saying about Loop.
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
I like it so much and it is so good
How does this insurer compare to insurance companies you’ve had in the past?
It is good for me and it’s give me some benefit
Insurance Type
Auto
Score by category
Original cost4/ 5
Customer Support4/ 5
Coverage2/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
Family planning
How does this insurer compare to insurance companies you’ve had in the past?
It’s cheaper and better
Insurance Type
Auto
Score by category
Original cost2/ 5
Customer Support3/ 5
Coverage2/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
Customer service was great and most importantly insurance costs were cheap.
How does this insurer compare to insurance companies you’ve had in the past?
Comparing insurance costs I’d say they came correct.
Insurance Type
Auto
Score by category
Original cost4/ 5
Customer Support4/ 5
Coverage5/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
It had better coverage for my money and was affordable for me
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
I’d recommend staying because the price is unmatched in today’s economy, the only way I’d leave is because another company has better paying options with more coverage.
Insurance Type
Auto
Score by category
Original cost4/ 5
Customer Support5/ 5
Coverage5/ 5
Anonymous Policyholder
August 20, 2024
How does this insurer compare to insurance companies you’ve had in the past?
Amazing
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
Best service
Insurance Type
Auto
Score by category
Original cost4/ 5
Customer Support4/ 5
Coverage5/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
The trust and quality and my friends
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
Because i need offers
Insurance Type
Auto
Score by category
Original cost3/ 5
Customer Support3/ 5
Coverage5/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
Because it’s easy and i love them
How does this insurer compare to insurance companies you’ve had in the past?
Nothing it has the same amount of money
Insurance Type
Auto
Score by category
Original cost5/ 5
Customer Support2/ 5
Coverage3/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
They had the lowest insurance plan with best offer I got as a deductible
How does this insurer compare to insurance companies you’ve had in the past?
They’ve been reliable and way more affordable
Insurance Type
Auto
Score by category
Original cost3/ 5
Customer Support5/ 5
Coverage4/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
It's a very good one for me
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
I wanted to have the best for me
Insurance Type
Auto
Score by category
Original cost4/ 5
Customer Support4/ 5
Coverage4/ 5
Anonymous Policyholder
August 20, 2024
What made you choose this insurer over others for your auto and/or home insurance?
I heard they have a better deal
How does this insurer compare to insurance companies you’ve had in the past?
R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license.
Lisa McArdle is an insurance editor who joined the Bankrate team in 2023. She has more than 15 years of experience writing, editing and managing content in a variety of industries, including insurance, auto news and pop culture.
