HiRoad Car Insurance Review: Low Rates for Fair Coverage at a Telematics Insurer
HiRoad auto insurance prices rates based on safe driving behavior, providing policyholders with opportunities to save on car insurance. However, coverage options are not especially robust, and the company is still young with a limited track record for customer and claims satisfaction.
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Editor's Rating
HiRoad insurance is best for drivers looking for cheap rates and basic auto insurance coverage. HiRoad's car insurance, currently limited to Rhode Island and Arizona residents, also has good customer reviews, indicating high user satisfaction. However, if you're interested in more robust coverage opportunities, other auto insurance companies are worth considering.
Pros and cons
Pros
Cheap auto insurance rates
Affordable insurance for high-risk drivers
Cons
Doesn't offer many coverage extras
Only available in Arizona and Rhode Island
HiRoad insurance: Cheap rates for basic coverage options
HiRoad's technology allows drivers to save on car insurance by encouraging safe driving behavior and may be particularly well suited for drivers traditionally seen as high risk by insurance companies.
By analyzing data about a user's driving behavior via a smartphone app, HiRoad is able to reward good habits with lower premiums. For example, driving smoothly and below the speed limit can qualify drivers for cheaper quotes than traditional auto insurers.
Indeed, customer reviews suggest that HiRoad's claim to reduce the cost of auto insurance by up to 50% often holds true, resulting in substantial savings for policyholders. Drivers who might benefit the most from a HiRoad policy include young drivers and others considered high risk by traditional insurance companies. Because HiRoad's rates are based on actual behavior, higher-risk drivers are likely to be penalized less when they demonstrate safe driving.
While those who don't drive often will likely benefit from low-priced quotes, HiRoad's coverage options are relatively rudimentary. Some drivers may require special add-on coverages, such as gap insurance, to insure a recently financed vehicle purchase. HiRoad does not currently offer gap insurance, among other add-on coverages.
Additional limitations of HiRoad insurance include:
- Policy availability is limited to Rhode Island and Arizona, though the company expects to expand coverage to other states in the future.
- A relatively young company founded in 2017, HiRoad has too limited a history to indicate a successful track record with customer service and paying out claims. HiRoad, however, is owned by State Farm, which has a well-established history of providing auto insurance coverage and paying out claims to customers in the U.S.
Bottom line: If you're looking for basic coverage and a good rate, HiRoad offers cheap car insurance with standard protections. Drivers who need specific add-on coverages, such as gap insurance, should look to other insurers for auto insurance quotes.
How does HiRoad auto insurance work?
HiRoad creates personalized car insurance rates by evaluating drivers' individual driving habits with telematics, or the use of data from connected devices that is increasingly popular in insurtech.
Drivers seeking a quote from HiRoad can answer a few questions about their driving behavior on the website. However, the actual rate a driver must pay is determined by data from trips driven every month. Policyholders must download and log in to the HiRoad mobile app when they take their car out.
Specifically, HiRoad relies on four categories of variables to determine auto insurance pricing:
- Safe speeds: Lower speeds offer drivers more reaction time in the event of an accident.
- Smooth driving: This includes gradual acceleration, gentle cornering and not breaking quickly. That kind of behavior can result in accidents like a rear-end hit or incidents in hazardous conditions.
- Driving patterns: This includes how much you drive, as well as when and where you drive. More miles and time on the road, especially late at night or on busy streets, increases the likelihood of an accident and therefore increases premiums.
- Distracted driving: If you use your phone while behind the wheel, you're more likely to get into an accident. As a result, more phone usage while driving, which is tracked by the app, means higher rates.
HiRoad recalculates drivers' discount every month, meaning the insurer determines how much is saved off a flat monthly bill based on only the driver's behavior for that specific month.
This pricing method illustrates why some drivers are able to save substantially on their car insurance with HiRoad. For example:
An 18-year-old who drives to school every night after sundown would likely pay more than an 18-year-old who drives three times a week during the daytime.
Similarly, a 30-year-old driver that drives five miles to work always under the speed limit is likely to pay less than someone who drives 20 miles at five miles per hour over the speed limit.
HiRoad also offers a rewards program to further incentivize good behavior. Monthly discounts are based on trips analyzed by the HiRoad app.
HiRoad car insurance coverage
HiRoad doesn't offer many auto insurance add-ons, but it does provide all the standard protections. Drivers needing a special coverage option, such as gap insurance for a recently financed car, could be better served by a traditional car insurer.
Traditional coverage options available through HiRoad Insurance
- Bodily injury and property damage liability
- Uninsured and underinsured motorist
- Medical payments
- Comprehensive and collision
HiRoad also offers rental reimbursement and roadside assistance, two coverage options common among car insurers.
- Rental reimbursement: Pays for the cost of a rental car or transportation expenses while your car is being repaired after an accident.
- Roadside assistance: Allows stranded drivers to contact HiRoad's Emergency Road Service through the mobile app for towing or mechanical repair assistance.
HiRoad car insurance reviews and complaints
HiRoad's reviews are predominantly positive. Even though the company is just a few years old, no official complaints have been filed with the National Association of Insurance Commissioners (NAIC). Many customer reviews of HiRoad also suggest that its low-cost value proposition is largely accurate, providing drivers with significantly cheaper car insurance rates compared to other large insurers. There are some complaints related to claims processing.
HiRoad insurance financial strength ratings and policy availability
HiRoad Assurance Company has an A rating for financial strength from A.M. Best, which evaluates the insurer's ability to successfully pay out claims. And although HiRoad is a relatively new company, it is owned by State Farm, a top national property and casualty insurer. Currently, HiRoad insurance is only available to drivers in Rhode Island and Arizona, though it may expand coverage to other states in the future.
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