Is Loop Auto Insurance Legit?

Is Loop Auto Insurance Legit?

Loop is a legitimate car insurance company, but it’s fairly new and only operates in Texas.

They use new technology to set rates based on how you drive, rather than things like credit history or job.

This could be a good deal for safe drivers with bad credit, but for now, Loop is only available in Texas.

An image illustration of whether Loop Auto Insurance is Legit
Is Loop Auto Insurance Legit
Source: (Freepik)

What’s new with Loop?

  • Loop is leveling up its customer service! They’re partnering with an AI company to use chatbots to answer your questions and help you faster. (September 2023)
  • Loop is on the rise! They secured a big investment (one of the largest ever for a female founder of color) to keep growing their business. (September 2022)

Loop Auto Insurance Pros and Cons

Feature Pros Cons
1 B Corporation status for social and environmental good Only available in Texas
2 Rates are based on driving data, not credit score, etc. No financial strength rating from AM Best
3 Fully online management through a website or mobile app No local offices

Loop Car Insurance Cost

  • There’s not enough data to say what the typical cost of Loop insurance is since they’re so new and limited.
  • Loop focuses on basing rates on your driving habits, not things like credit score. This means they aim to be cheaper for safe drivers.
  • To give you a general idea, average car insurance costs in the US are $740 for minimum coverage and $2,543 for full coverage. In Texas (where Loop operates), minimum coverage averages $694 and full coverage is $2,620.

Loop Car Insurance Discounts

  • Safe driver? Get up to 13% off for a clean record and past insurance coverage.
  • Eco-friendly car? Enjoy an 8% discount for electric or hybrid vehicles.
  • Pay upfront? Save up to 21% for paying your entire premium at once (or 10% for half upfront).
  • Drive less? You might qualify for a discount based on how you use your car.
  • Go paperless? Save a little extra by opting for digital documents.

Compare Loop with other insurers

  • Lemonade: Similar to Loop, Lemonade focuses on technology and fast claims. They also offer social good programs, but unlike Loop, they have roadside assistance and are available in more states (expanding further). Both use driving data for rates, but Lemonade is more established.
  • Root: Root goes all-in on driving data by requiring a test before giving quotes. This might lead to lower rates for safe drivers, but they still use credit for now (though they plan to stop). Root is available in many more states than Loop, but Loop might be better for socially conscious consumers since it’s a Certified B-Corp.
  • Clearcover: Like Loop and Lemonade, Clearcover offers a tech-driven experience with a focus on fast claims. They operate in many states (more than Loop) and claim affordability due to low advertising. However, Loop might be a better choice in Texas due to its unique pricing model.

Is Loop a good insurance company?

Should you get Loop insurance? This review looked at Loop closely to help you decide.

Loop might be a good fit if:

  • You’re a Texas driver who likes their unique pricing based on driving habits.

Keep in mind:

  • Loop currently only operates in Texas.
  • If you’re interested in a similar company but live elsewhere, check out other options by comparing quotes.

Loop customer satisfaction

Not enough reviews yet: Loop is too new to have ratings from J.D. Power or S&P, but their policies are backed by a financially strong reinsurer (though they don’t say who).

Limited info on complaints: Since Loop is a small company, there isn’t enough data for a complaint rating from the NAIC.

Basic offerings: Right now, Loop only offers car insurance and their mobile app doesn’t have great reviews.

On the bright side: They have a helpful car ownership blog on their website.

Conclusion

Loop seems to be a legitimate auto insurance company, but with some important considerations:

  • Limited availability: Loop currently only operates in Texas.
  • New company: Founded in 2020, Loop lacks the track record of established insurers.
  • Unique pricing: They focus on driving data rather than traditional factors, potentially benefiting safe drivers.
  • Unproven customer service: No customer satisfaction ratings are available yet due to Loop’s newness.
  • Basic options: Currently, Loop only offers car insurance and their mobile app has low ratings.

Overall, Loop could be a good option for Texas drivers with a clean driving record who are looking for a new way to get car insurance.

However, if you live outside of Texas or prefer a more established company with additional features, you might be better off comparing quotes from other insurers.

An image illustration of Loop Auto Insurance
Loop Auto Insurance
Source: (Freepik)

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