3 more ways traditional car insurance is unfair

You've read 3 Ways Traditional Car Insurance is Unfair To You?

Awesome. We're not quite finished. Here are more ways traditional car insurance is less than fair.

It's unfair because so much money goes to advertising.

How many insurance mascots can you think of?

Auto insurance spends more on advertising than any other industry in the US. And that money is coming from somewhere. (Hint: your pocket.)

If you're a Geico customer, for example, about 6% of your policy check is going to their 1.1 billion dollar annual ad spend.


Essentially, ordinary families are paying for all those car insurance mascots, celebrities, spots, and massive media buys. And that doesn't seem fair.

The Root way:
A good product sells itself. You can't get a better endorsement than satisfied customers telling their friends about you. That's why you won't ever see us spending your dollars on egregiously expensive ads. We think there's a better way.

It's unfair because of all the gimmicks and confusion.

The old way: By itself, car insurance is a simple and valuable product. But in the rush to acquire customers, insurance companies have made up a bunch of add-ons and programs that end up costing the consumer money.

Make no mistake: you pay for "vanishing deductibles," online signing discounts, and other such gimmicks—even if the costs are hidden. There's still no such thing as a free lunch.

And all these extra gimmicks add to another big problem: it's already hard to understand what you're getting when you buy car insurance. Why make it more complicated?

The Root way: By only insuring good drivers, we're able to offer the best rates. No gimmicks, no hidden fees. We don't need them.

It's unfair because it's still stuck in old tech.

The old way: You probably aren't surprised to hear that when it comes to innovation and technology, insurance companies are way, way behind. Like every other industry, they've had their chances to invest in engineering and upgraded technology over the past few decades. But they've largely said no.

The price? An inability to move quickly or innovate into new technologies. Traditional insurers are patching new solutions onto outdated systems—and that only works for so long.

Compounding the problem is a resistance to new ideas. And here's the thing: it's not because insurance companies don't want to innovate, it's that innovation comes with too much risk. The Root model—only insuring good drivers—would be terrifying to a traditional insurer. They're in a marketing arms race with each other and can't afford to lose customers. They've become too big to take leaps.

As a result, you get a clumsy, dated experience and a poorly designed product.

The Root way: Root is synonymous with technology and innovation. We don't fill our desks with agents. We fill them with engineers creating new technologies that will continue to innovate and improve the industry. And that means a better and more fair experience for you.

Okay, by now you've gotten the picture. Had enough of unfair insurance? So have we.

It's time to try it the Root way.

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