LOOP's Glossary Of Car Insurance Rating Factors

To provide a fair and accurate insurance rate, LOOP measures what matters:

• Where you drive
• How you drive
• What you drive
• Your experience behind the wheel
• What coverages and limits you're buying
• Your driving history and previous insurance history
  

What you won’t see in LOOP’s pricing—that nearly every other insurance carrier penalizes drivers for—are your credit, occupation, level of education, and homeownership. 

At LOOP, we also make transparent the relative importance of each factor when it comes to determining your price. Some factors are more important than others when it comes to determining your price. For example, driving safely alone can result in up to a 10% discount at renewal. 

Where you drive

Zip Code and Territory Tier

LOOP estimates the probability of a crash within a 25-minute commute from our driver’s home address. Drivers that live in neighborhoods with low crash risk get favorable rates.

The price of insurance with LOOP can vary by 118% points based on this factor alone.

Vehicle Use

LOOP asks drivers to estimate how many miles each year, they typically drive. Drivers that drive less and/or are not commuting as regularly (less than one or two times per week) get discounts.

The price of insurance with LOOP can vary by up to 8% based on this factor.

How you drive

Usage-based

LOOP calculates a driver’s probability of crashing based on their personal driving behaviors including factors such as: speeding, the crash risk of the roads driven, weather conditions, and time of day. 

Custom insights on how to qualify for a usage-based discount are shared with drivers, so that they may qualify for greater discounts at renewal. Drivers must have the phone app enabled for 21 days per month to avoid penalties. 

The price of insurance with LOOP can vary by up to 231% based on this factor.

Violation Points

Drivers without violation points on their license for offenses such as Driving While Under the Influence within the last three years, get more favorable rates. 

The price of insurance with LOOP can vary by up to 167% based on this factor.

Safe Driver Discount

Drivers qualify for a discount if they have not had a DWI or an accident where they were at fault in the last 3 years and they have maintained insurance coverage for five of the six months before their policy started. To get this discount, the driver must be 18 or older.

The price of insurance with LOOP can vary by up to 13% based on this factor.

No accidents for 2+ or 5+ years

After two years with LOOP, drivers who do not have a crash where they were determined to be at fault qualify for a discount. After five years, there is an even larger discount. Drivers must be 21+ to qualify and have maintained their insurance coverage for five of the six months before the policy start date and renewal dates. 

The price of insurance with LOOP can vary by up to 8% based on this factor.

Count of Not-at-fault crashes

The number of crashes (whether the driver is at fault or not, over the last five years. Drivers with the fewest claims get the most favorable rates. Drivers that have not been in a crash in the last ~five years (59 months) receive no penalty.

The price of insurance with LOOP can vary by up to 49% based on this factor.

CMP Count

The number of paid comprehensive claims (damages to your vehicle that aren’t from a crash, e.g., a tree limb falling on your car) greater than $1,000, over the last ~five years (59 months). Drivers with the fewest claims get the most favorable rates. 

The price of insurance with LOOP can vary by up to 10% based on this factor.

What you drive

Make, Model, and Specs of the Vehicle

The make, model, and specifications, as captured by a Vehicle ID Number (VIN). Vehicles that are not luxury-class vehicles receive the most favorable rates. 

The price of insurance with LOOP can vary by up to 274% based on this factor.

Automatic Emergency Braking (AEB) 

Drivers of vehicles with an automatic emergency braking system (the car initiates stopping itself if it is about to hit something) receive a discount. 

The price of insurance with LOOP can vary by up to 8% based on this factor.

Electric and Hybrid Vehicles

Drivers that use hybrid and electric vehicles receive a discount. 

The price of insurance with LOOP can vary by up to 8% based on this factor.

Vehicle Age

The age in years of the vehicle. The most favorable rates for bodily injury coverage are for vehicles equipped with modern features that are less than 10 years old. 

The price of insurance with LOOP can vary by up to 42% based on this factor.

OEM 

Drivers that want to repair damages with OEM factory-parts when available, pay a premium on comprehensive and collision coverage. 

The price of insurance with LOOP can vary by up to 6% based on this factor.

Your experience behind the wheel

Number of drivers and vehicles

The number of drivers and vehicles in the household. Households with two or fewer drivers, but three or more cars, typically qualify for a discount. Households with three drivers typically qualify for three or more cars, and households with four or more drivers, typically qualify when there are four or more cars. 

The price of insurance with LOOP can vary by up to 39% based on this factor.

Driver experience and crash-prone demographics 

LOOP asks for the driver’s age, marital status, and gender. Drivers may chose to not specify gender or select non-binary. Drivers between the ages of 20 and 74 receive the most favorable rates. 

The price of insurance with LOOP can vary by up to 309% based on this factor.

What insurance are you buying

Full Coverage

When a driver purchases Bodily Injury, Property Damage, Comprehensive, and Collision coverages then the policy is considered to have ‘Full Coverage’ and gets the most favorable rates. 

The price of insurance with LOOP can vary by up to 3% based on this factor.

Paid in Full

Drivers can choose to pay in full, two payments of 50% each, or in installments. Drivers that choose to pay more upfront, in full or two payments, are eligible for a discount. There is no penalty for paying in installments. 

The price of insurance with LOOP can vary by up to 21% based on this factor.

Electronic payment

LOOP offers a discount to drivers who sign up for LOOP and receive communications electronically, via email, mobile, or the LOOP website. 

The price of insurance with LOOP can vary by 2% based on this factor.

Your insurance history

Prior Insurance Classification

Drivers that have not gone without insurance for more than a month, over the last twelve months, get the most favorable rates. If a driver wasn’t in possession of a car requiring insurance, over the last six months, there is no penalty. 

The price of insurance with LOOP can vary, 6% based on this factor.

With Previous Carrier

LOOP rates favor drivers that are switching to LOOP after being with their most recent carrier for 18 months or more. 

The price of insurance with LOOP can vary, 10% based on this factor.

Cancellation Months

Drivers that have not had a policy canceled or non-renewed by their carrier in the last three years or more get the most favorable rates. There are no penalties for a driver who choses to cancel or non-renew in order to switch to LOOP. 

The price of insurance with LOOP can vary, 12% based on this factor.

SR22 Status

The best rates are available for drivers that do not require a SR-22 certificate. This certificate is typically ordered by a court for previously driving without insurance. 
The price of insurance with LOOP can vary, 11% based on this factor.