By Buchanan Maldonado
An Educational Breakdown for Today’s Insurance Shopper
When comparing auto insurance companies, two names often come up for very different reasons: Root Insurance, a tech-driven newcomer, and State Farm, the nation’s largest and most established insurance provider. Both companies insure millions of drivers — but their pricing, underwriting, and customer experience differ drastically. Here’s a breakdown to help consumers understand which carrier may offer better rates and why.
1. Company Overview
Root Insurance: Technology-Based Pricing
Root was founded in 2015 with a mission to disrupt traditional insurance pricing. Instead of relying heavily on demographics like age, ZIP code, or credit score, Root uses smartphone telematics to monitor real driving behavior. Your rate is built largely around:
How smoothly you brake
Speed, cornering, and turning habits
Phone usage while driving
Time of day you drive
Root’s promise: If you’re a truly good driver, you should pay less — regardless of traditional rating factors.
State Farm: Traditional, Stable, and Broad Coverage
State Farm, founded in 1922, is the largest auto insurer in the country. Their pricing uses a long-established mix of rating criteria including:
Driving history
Age and gender
Credit-based insurance score
Claims history
Location and population density
Vehicle type and mileage
State Farm also offers a huge range of insurance products (auto, home, renters, life, business, etc.) allowing bundling discounts that Root does not offer.
2. How Each Company Determines Prices
Root’s Pricing Philosophy: Behavior Over Demographics
Root may offer better prices for drivers who:
✔ Are extremely safe
✔ Avoid hard braking or fast acceleration
✔ Drive mostly during daylight
✔ Keep their phone down
✔ Prefer app-based insurance with little need for an agent
Root generally favors younger drivers, “clean” drivers with no prior tickets, and individuals who would otherwise be penalized by traditional rating factors.
Why they might be cheaper:
Root’s telematics-based pricing means good driving habits can outweigh factors that would normally raise premiums.
State Farm’s Pricing Philosophy: Multi-Factor Traditional Rating
State Farm may offer better prices for drivers who:
✔ Bundle home + auto or multiple vehicles
✔ Drive older, less expensive cars
✔ Have strong credit
✔ Prefer agent support
✔ Want long-term stability and claims responsiveness
✔ Participate in Drive Safe & Save (optional telematics discounts)
State Farm considers more data points than Root, which can help drivers with:
Limited smartphone use
High annual miles
Inconsistent driving patterns
Teen drivers needing multi-policy discounts
Why they might be cheaper:
State Farm’s massive size and broad product suite allow them to offer significant bundling discounts and stable long-term pricing.
3. Which Company Usually Offers Better Prices?
⚡ Root Can Be Cheaper For:
Excellent drivers with smooth, consistent habits
Younger drivers who are often penalized by traditional carriers
People with lower credit scores
Individuals who prefer “pay-by-behavior” insurance
Drivers who rarely drive at night
Tech-savvy customers comfortable with app-only service
Root often delivers some of the lowest rates in the market for these profiles.
🏡 State Farm Can Be Cheaper For:
Homeowners bundling home + auto
Families with multiple cars
People with strong credit
Drivers with longer commutes or irregular driving habits
Customers who want an agent involved in their policy
Older drivers with long insurance histories
State Farm often wins on bundled pricing, financial stability, and long-term discounts.
4. Important Differences Beyond Price
🟠 Customer Service Model
Root: 100% app-based, limited phone support, no local agents
State Farm: National agent network, in-person support, 24/7 claims service
🟠 Financial Stability
Root: Smaller, newer company
State Farm: One of the strongest financial ratings in the industry (A++ AM Best)
🟠 Coverage Variety
Root: Primarily auto insurance
State Farm: Auto, home, life, renters, boats, business, and more
🟠 Claims Experience
State Farm is known for a highly established claims process
Root is still scaling and refining its claims infrastructure
5. Final Recommendation: Which Is Better?
The answer depends on the driver.
Choose Root If You Want…
-The chance to get rewarded for being an excellent driver
-Purely telematics-based pricing
-A tech-first insurance experience
-Potentially lower premiums despite age or credit factors
Choose State Farm If You Want…
-Stability, strong financial backing, and a proven claims process
-Personal support from a local agent
-Bundling opportunities for cheaper overall insurance
-A carrier with 100 years of experience
Final Thoughts
Root and State Farm represent two different eras of insurance — one built on technology and individualized ratings, the other on tradition, stability, and wide-ranging coverage. The best price truly depends on your driving habits, your financial profile, your need for agent support, and whether you plan to bundle policies.
Need Advice on Your Auto Coverage?
If you want a personalized recommendation or want to compare rates across 250 top carriers, you can reach out to me directly:
👉 Quote.BuchananMaldonado.com
(Quick, easy, no-obligation insurance guidance)
I’m here to help you find the best coverage at the best price.
Buchanan Maldonado 