Loop insurance review 2023

Loop car insurance

Bankrate’s Loop Insurance review found that the company might be a good choice for drivers who want to explore an innovative type of car insurance. Loop aims to change the way auto insurance policies are priced by using a unique rating method that removes most non-driving rating factors. Bankrate looked into Loop’s innovative pricing model and company structure to help you decide if the new insurer could be the best car insurance company for you. However, Loop is only available in Texas, and its plans to expand to other states in 2022 seem to have faltered.

Loop car insurance sets itself apart from other auto insurance carriers in a number of ways. Loop uses a combination of telematics data and AI to price policies based on driving habits and road safety rather than mainly using demographic data like credit rating, education level and ZIP code. Loop contends that this will be a more fair pricing model and will help prevent unintended bias when it comes to car insurance rates.

Loop is also a Certified Public-Benefit Corporation (B-Corp), which means that the company is focused on more than just profits. Loop’s mission is to provide fair insurance pricing to everyone with less emphasis on standard rating factors. Several states have begun mitigating or banning the use of metrics like ZIP code, gender and credit, as they could potentially contribute to structural bias within the insurance industry.

Loop car insurance cost

Loop auto insurance has very limited availability, so average premiums are not available. However, the company was founded on the belief that car insurance should be priced differently and that prices should be honest and straightforward.

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:

Loop customer satisfaction

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 a large reinsurer with an A+ (Superior) AM Best financial strength rating. Loop does not disclose the identity of the insurance company that underwrites its policies.

If the company begins to expand their coverage options and area, more reviews and ratings may become available.

How to file a claim with Loop

To file a claim with Loop, you can:

• Call 1-800-659-4918
• 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 availability

Loop is currently only available in Texas. The company had plans to expand to nine more states by the end of 2022, but those plans seem to have stalled. Only Texas drivers are eligible for quotes.

Other Loop perks worth considering

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. Loop does operate a helpful auto-focused blog, though, which may help you navigate car ownership.

Loop corporate sustainability

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.

Not sure if Loop is right for you?

While gathering car insurance quotes, comparing rates and coverage offerings from several companies may be a good strategy. 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, 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 that offers additional perks like roadside assistance at no additional cost.

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 who don’t yet qualify for Loop. 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

Is Loop a good insurance company?

Our Loop Insurance review examined the company from several angles to help you decide if coverage could be right for you. Our editorial team includes four licensed insurance agents who know the industry and focus on what matters to consumers.

Loop may be a good insurance company for Texas drivers who want to try a new way of pricing insurance policies. However, the limited availability means Loop isn’t an option for drivers outside of Texas. If you’re interested in an innovative insurer but don’t live in Loop’s coverage area, you may want to consider quotes from other companies to find the best option for you.