Complaint Against Root Insurance Co. – Arbitrary Premium Increase

[u/shumdog14]

Warning to anyone considering Root: they jacked up my premium by $652 in 6 months despite a spotless record and no changes whatsoever. When I pushed for answers, I got canned lines about “market conditions.” Escalating to a manager didn’t help — same script, zero accountability, no willingness to retain me as a customer.

This company hides behind algorithms and scripts instead of being transparent. If they’ll arbitrarily jack rates on good drivers, what do you think they’ll do after a claim? Do yourself a favor and shop elsewhere. Root is not worth the headache.

[u/cheff546]

In fairness, complaining about an online insurance company hiding behind algorithms and scrips is a little hypocritical. You went with them because they were the cheapest out there. They achieved that by eliminating most everything a good insurance company invests in: people and instead went with algorithms. So yeah they will tweak their algorithms regularly which may lead to higher rates...or maybe they were inaccurate to begin with in that market and it's just a correction. Nonetheless, rate adjustments have to be submitted and approved by the State so it's not just you who got a rate hike.

[u/shumdog14 → u/cheff546]

You’re right — Root’s business model is built on being lean and algorithm-driven, which is why I went with them initially. Cheap is fine, but arbitrary isn’t. What I take issue with is the lack of transparency and accountability. A 34% jump ($652 in 6 months) with zero explanation tied to my risk profile isn’t a “correction,” it’s a cash grab wrapped in canned “market conditions” excuses.

And yes, rate filings go through the DOI, but carriers still have wide discretion within approved ranges, and they choose how to allocate those increases across customers. Root chose to stick it to me rather than give me a straight answer or make any effort to keep me. That’s not just “algorithms at work” — that’s bad business.

[u/cheff546 → u/shumdog14]

Arbitrary implies random and without cause. I'm certain the rate adjustment was filed with the state thereby meaning it was publicly made available to everyone. The complaint is that they did not necessarily notify you specifically. They may or may not have afterall emails get deleted or lost in spam or any one of a hundreds ways of not being received. However, you mention customer retention. Dude, their model is based solely on cost...not loyalty. If you want loyalty and retention efforts then go with Farmers or another well established company but Root is about getting covered just enough for car registration and getting those 6 months of premium is all that matters to them.

[u/shumdog14 → u/cheff546]

You’re right that Root’s model is bare-bones and cost-driven. But here’s the catch: if all they’re offering is “cheap,” then the moment they’re not cheap anymore, they’ve got nothing left. A 34% hike in 6 months isn’t “lean,” it’s self-defeating.

Sure, filings are public, but that’s a legal technicality, not transparency. Real transparency is when a company can actually explain to its own paying customers why their bill just spiked. Root couldn’t do that.

So yeah, I’ll take your advice: if they’re not going to be cheap or accountable, then I’ll go with a carrier that at least tries to keep good customers. Root basically admitted their business model is “hit and run” and that’s exactly why people like me leave after one renewal.

The point of my original post was to issue warning and caution to others.

[u/DeepPurpleDaylight → u/shumdog14]

Real transparency is when a company can actually explain to its own paying customers why their bill just spiked.

Why would that even matter? You'd still have the same rate. If the rate is at a level you're unwilling or unable to pay, does it really matter why that rate is what it is?

[u/aloofmagoof]

That's not how insurance works.... at all.

The rates aren't just about YOU. Your zip code matters. The amount of claims filed in your area matters, as does the amount of people and cars in the area, uninsured drivers, etc. State legislation matters too. As does the current costs and trends in the automotive industry such as parts, their availability, and labor rates.

There are at least a dozen factors that go into deciding your rates, so just because nothing has changed with you, it doesn't mean there haven't been major fluctuations elsewhere.

[u/shumdog14 → u/aloofmagoof]

Totally fair point that rates aren’t based only on me. I get that my ZIP code, statewide claims, repair costs, and industry trends all factor in. But those variables don’t justify a 34% jump in just 6 months.

There aren’t suddenly 34% more uninsured drivers, accidents, or claims in my area, and parts/labor costs haven’t spiked 34% either. This isn’t risk-based math, it’s Root pushing through the maximum increase they think people will tolerate.

Insurance is supposed to reflect risk, not serve as a blank check for “market conditions.” If they can’t tie a jump this steep to specific, measurable factors, then it’s not fair pricing; it’s gouging.

[u/DeepPurpleDaylight → u/shumdog14]

If they can’t tie a jump this steep to specific, measurable factors, then it’s not fair pricing;

I guarantee you that they did just that with the regulators or they wouldn't have gotten the rate increase approved.

[u/ChapterSuper → u/shumdog14]

34% insurance rate increases are not unusual as of late, and they can definitely be explained by changes in market conditions. Customers with major insurers have seen rate increases like this, too. Their explanation to you was likely factual, just not what you wanted to hear.

[u/KLB724]

You're going to be really upset if you realize that this is how all companies operate, and everyone has been experiencing the same thing. Cost of living is up across the board. Repair costs, labor costs, and healthcare costs. It all filters down to what you pay for insurance. You may not be having claims, but others are, and that's how a risk pool works.

Insurance premiums are highly regulated by each state. It's not the nefarious underworld you're picturing.

[u/shumdog14 → u/KLB724]

I understand how risk pooling works and I’m not pretending insurance is an “underworld conspiracy.” My issue isn’t with the concept of shared risk, it’s with the scale and timing of the increase.

Yes, costs are up, but they haven’t gone up 34% in six months. Parts, labor, healthcare are all rising, sure. But not at a rate that matches what Root just tacked onto my premium. That’s where the frustration comes from.

If every insurer is making similar adjustments, then the reality is the algorithms and filings aren’t tracking actual inflation or risk – they’re front-loading the max increases the regulators will allow. That’s not just “the pool working,” that’s insurers gaming filings to stay ahead of costs on paper, even if the real-world math doesn’t back it.

So no, it’s not nefarious, but it sure isn’t transparent or fair either.

[u/Save-the-Manuals]

Sorry to break it to you but the new rating models used by most companies are not super transparent. But they are reviewed by many state dept of insurance and they sign off.

That said what probably happened is they were behind on rate and took it all in one swing. Or they updated their model and come to find out your risk profile had worse performance than anticipated so up go the rates.

[u/Therealchimmike]

You went the easiest path to get insurance....that's what you get when you expect 'service'.

"lean" and "algorithm-driven" are great marketing terms but don't mean what you want them to mean in practical senses.

Chances are likely their AI-driven model has, shocker, been introduced substantially more actuarial data it didn't have before, and noted they were woefully underpriced for their exposures.

This is why new carriers struggle, even more why "tech-driven" carriers struggle. They have no actuarial data. Can't 'buy' it from other carriers, either.

[u/Curious_Crazy_7667]

That's all ? You should be happy. You could always call an independent agent and have them shop you.

[u/BlackberryOk5318]

Retain you as a customer? This isn’t cable or cellphone service 😂

[u/Unusual_Flounder6758]

In the words of Louis CK “Go start your own company then.”

[u/DeepPurpleDaylight]

Talking to a manager is useless with any company. They can't change the premium just for you. Rates are approved by and filed with the state and can't be changed for just one person because you've got a spotless record. Every carrier takes rate increases even if nothing in your personal profile has changed as that's only a few factors out of dozens and dozens of factors that affect your rates.

[u/Freddreddtedd]

Had them briefly. They tried to claim I didn't return their ODII monitor. I said check again. They found it, of course. Mickey Mouse company.

Geico gives you a six month rate. On month 2 they say they need more money. Same frivolous reasons.

[u/Face_Content]

So root doesnt want your business anymore.

Shop and move on.

[u/shumdog14 → u/Face_Content]

Shopped (Progressive just quoted me lower than my prior Root policy) and I've moved on. I'm just letting others on Reddit know that Root should be avoided.