I previously wrote about how Root raised my insurance premium 49% overnight. Following this, I received an outpouring of support with people urging me to report Root to my state regulator. Many assumed that there were regulations prohibiting the insurance company from increasing rates so dramatically. I Filed a Complaint with the Arizona Department of Insurance and Financial InstitutionsAfter speaking with the Arizona Department of Insurance and Financial Institutions briefly via email, I learned that Root had likely broken several regulations or, at the very least, had an obligation to to give specific reasons why my insurance rates went up so much. That in mind, I went ahead and filed a formal complaint. If There is Price Competition, a Company is in the Clear in Arizona I got my response back from the state about a week ago. Here's what I was told: "As a matter of law, a rate cannot be found to be excessive 'if a reasonable degree of price competition exists at the consumer level.'" In other words, Root could raise their rates as much as they wanted as long as there was competition. Root Provided a List of Reasons for My Premium IncreaseEven though Root refused to answer me personally when I asked why they raised my rates, the company had to answer the state. Here's the list of reasons they gave:
I'm not an insurance guru, and I'm assuming you're not either, but based on what I could find out, here's what this really means.
Root isn't What it Appears to BeRoot insurance built its model around rewarding good drivers for being safe. You drive better, you pay less. While that may still be true to some degree, the fact that they're reducing their discounts for accident-free driving and safe driving speaks volumes.
But, the other part of this is that there's a trade-off. My service with Root has never once been as good or even close to the service I received from Allstate. You need help? Good luck getting someone on the phone. You need roadside assistance? That's outsourced and you may well wind up talking to a rep who has no affiliation with the company and could get stranded overnight like I did. Oh, and, expect to pay your towing fee up front and then wait for reimbursement. Yeah, no... not a model built on service at all. And, if you want to know why your premiums skyrocketed overnight, don't expect them to tell you. I don't know which part is sadder- that this company has very clearly strayed from it's promoted values of rewarding good drivers or that they're doing this at a time when other insurance companies are taking a stand and helping their clients overcome pandemic hardships. Either way, shame on you, Root. Any savings I'm still seeing can be wholly attributed to the lack of service provided from a company I no longer trust. Thankfully, I'm recovering financially from the issues COVID caused. My days with Root are numbered.
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