HiRoad Car Insurance Review: Low Rates for Fair Coverage at a Telematics Insurer

HiRoad Car Insurance Review: Low Rates for Fair Coverage at a Telematics Insurer

Editor's Rating

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.

Good for

  • Cheap auto insurance rates
  • High-risk drivers that receive more expensive quotes through traditional insurers

Bad for

  • Drivers seeking non-standard coverages such as gap insurance
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Editor's Rating

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.

Good for

  • Cheap auto insurance rates
  • High-risk drivers that receive more expensive quotes through traditional insurers

Bad for

  • Drivers seeking non-standard coverages such as gap insurance
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HioRoad insurance is best for drivers who are looking for cheap rates and basic auto insurance coverage. HiRoad's car insurance, currently limited to Rhode Island residents, also has good customer reviews, indicating high levels of user satisfaction. However, if you're interested in more robust coverage opportunities, it's worth considering other auto insurance companies.

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 that are traditionally seen as high risk by insurance companies.

By analyzing data about a user's driving behavior via a smartphone application, HiRoad is able to reward good habits with lower premiums. Driving smoothly and below the speed limit, for example, can qualify drivers for cheaper quotes than those offered by 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 that 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 users that don't drive particularly 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 drivers in Rhode Island, though the company expects to expand coverage to other states in the future.
  • As a relatively young company founded in 2017, HiRoad has too limited a history to indicate successful track record with customer service and paying out auto insurance 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 for you, HiRoad offers cheap car insurance with standard protections. Drivers that 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 will pay is determined by data from trips driven every month. HiRoad policyholders must download and log in to the HiRoad mobile app when they take their car out.

Specifically, HiRoad relies on six variables to determine auto insurance pricing:

  • Driving amount: How much you drive is the largest factor. More miles and time on the road increases the likelihood of an accident and therefore increases premiums.
  • Smooth braking: The second most important variable is meant to prevent tailgating, distracted driving and other unsafe behaviors, which can result in accidents like a rear-end hit.
  • Driving environment: Driving during the daytime and in less dense urban areas can lead to cheaper rates, as driving at night and in cities is more likely to result in an accident.
  • Gradual acceleration: A steady foot when accelerating signals mindful behavior that's less likely to surprise other drivers on the road.
  • Safe speeds: Lower speeds offer drivers more reaction time to respond in the event of an accident.
  • Gentle cornering: The ability to manage turns smoothly is especially important when driving in hazardous conditions like rain or snow storms.

HiRoad recalculates drivers' auto quotes every month, meaning the insurer determines a monthly bill based on only the driver's behavior for that specific month.

This pricing method illustrates why some drivers be 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 that drives just 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 drivers 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. Drivers can also receive challenge credits by achieving monthly goals set by the app, which in turn lower costs for the subsequent billing statement.

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 car insurance coverage

HiRoad doesn't offer many auto insurance add-ons, but it does provide all the standard protections. Drivers in need of 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, though these two coverage options are common among car insurers.

  • Rental reimbursement: Pays for the cost of a rental car or transportation expenses when your car is being repaired after an accident. HiRoad allows drivers to select the rental car company of their choice and as an alternative option offers $40 a day (up to $1,200 maximum) in Uber credits.
  • Roadside assistance: Allows stranded drivers to contact HiRoad's Emergency Road Service through the mobile app to receive towing or mechanical repair assistance.

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, though it may expand coverage to other states in the future.

Michael Hoffmann is a Senior Research Analyst focused on insurance. He was previously a Technology Editor at The Economist Intelligence Unit and has had prior roles as an ETF and Equity Analyst focused on emerging technologies like artificial intelligence, cybersecurity and cloud computing.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.