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Loop insurance review 2024
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At a glance
BANKRATE'S TAKE
Loop car insurance could be a good choice if you value innovative technologies and unique rating systems. However, coverage is currently limited to Texas.
Since Loop weighs driving habits over standard rating criteria such as credit, occupation and gender, Loop may be a good option for drivers who have an excellent driving history but struggle with their credit score.
New
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.
In September 2022, Loop obtained $21 million in Series A funding, among the largest amount ever by a female founder of color. This funding comes less than a year after the company's Series Seed financing, which raised $3.25 million.
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. Loop insurance is only available in Texas but it has goals to expand to 10 or 12 states in the future.
Bankrate looked into Loop’s pricing model and company structure to help you decide if it could be the best car insurance company for you. 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 history, education level and ZIP code. Loop contends that this will be a fairer pricing model and will help prevent unintended bias when it comes to car insurance rates.
Loop car insurance 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 certain metrics like gender and credit, as they could potentially contribute to bias within the insurance industry.
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, that doesn't mean it may not 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.
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B Corporation status may appeal to policyholders focused on using their buying power to promote social and environmental change
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Rates are based on driving data rather than non-driving factors
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Policy can be managed entirely online through website or mobile app
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Only available in Texas
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No financial strength rating from AM Best
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No local offices
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 reflect real driving habits, rather than other personal rating factors.
Loop aims to provide insurance products that are more affordable for drivers. Currently, the average cost of car insurance in the U.S. is $740 per year for minimum coverage and $2,543 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 $694 while full coverage averages $2,620.
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:
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 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 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
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 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 are interested in its 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 compare quotes from other companies to find the best option for you.
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 its coverage options and area, more Loop insurance reviews and ratings may become available.
Loop customer complaints
When shopping for a new auto insurance policy, it can be helpful to look toward the National Association of Insurance Commissioners (NAIC). The NAIC provides a useful complaint index to track a company’s customer complaints over time. However, since Loop is such a small company, it is not yet rated.
Other 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 2.7 out of 5.0 stars for its iOS app. The company website has a helpful auto-focused blog, though, which may help you navigate car ownership.
Frequently asked questions about Loop
Shannon Martin is a licensed insurance agent and Bankrate analyst with over 15 years of experience in the industry. She enjoys helping others navigate the insurance world by cutting through complex jargon and empowering readers to make strong financial decisions independently.
