Root Insurance

What Root Insurance does

Root Insurance is a publicly traded (NASDAQ: ROOT) property and casualty insurtech founded in 2015 in Columbus, Ohio, that underwrites personal auto insurance priced primarily on actual driving behavior rather than demographics. Customers download Root's mobile app, complete a multi-week "test drive" during which smartphone sensors (GPS, accelerometer, gyroscope, magnetometer) collect driving data, and then receive personalized quotes. The company also offers renters insurance and add-ons including roadside assistance, SR-22 filing, and collision deductible waiver.

The core technology stack is a mobile telematics platform combined with proprietary machine learning pricing models trained on over 20 billion miles of collected driving data. Root uses computer vision and image processing in its claims flow, supports virtual vehicle inspections via app-based photo capture, and operates a fully automated 24-hour digital onboarding system for independent agents. Recent connected-vehicle data partnerships with Toyota and Hyundai Capital extend telematics input beyond smartphone sensors into OEM-native vehicle data.

Root generates revenue primarily through six-month recurring auto insurance premiums on a monthly or full-term billing basis, with average rates of $127/month for minimum coverage and $246/month for full coverage. Distribution is omnichannel: direct-to-consumer via the mobile app, embedded insurance partnerships with Carvana (200,000+ policies milestone), Hyundai Capital America, and Kikoff, independent agents through EZLynx and PL Rating comparative raters, and aggregators including Experian and Freeway Insurance. The company operates across 36 U.S. states through multiple insurance carrier entities and managing general agencies.

Name

Root Insurance

Legal name

Root Insurance Company

Website

https://joinroot.com

Company type

Public

Founded year

2015

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Root Insurance is a publicly traded auto insurtech that prices personal car insurance primarily on driving behavior measured through a smartphone telematics app, distributing policies via direct-to-consumer mobile, embedded OEM partnerships, and a 15,000+ agent independent network across 36 U.S. states.

Ownership category

akta.pro rank

Headquarters

HQ city

Columbus

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Supply Chain

Revenue model

1. Auto Insurance Premiums: Primary revenue stream from 6-month term auto insurance policies priced based on telematics-derived driving behavior. Policyholders pay monthly or full-term premiums. Q1 2026 revenue of $393.5M with 12.6% revenue growth.
2. Embedded Insurance Distribution: Revenue generated through partnership distribution channels including Carvana, Hyundai Capital, and other OEM partners where Root provides insurance as integrated offering.

Pricing tiers

Go-to-market motion4 records

Distribution channels7 records

Marketing channels5 records

Core offering

Root Insurance is a mobile-first auto insurance carrier that prices policies primarily on measured driving behavior rather than demographics. Customers download the Root app, complete a Test Drive period during which smartphone sensors (GPS, accelerometer, gyroscope, magnetometer) capture braking, turning, acceleration and time-of-day patterns, and then receive a personalized 6-month term quote. The company also distributes through independent agents and embedded insurance partnerships with automotive and consumer finance platforms.

Product overview

Root Insurance is a technology-based car insurance company that operates primarily through its mobile app, offering personalized auto insurance rates based on telematics-measured driving behavior rather than demographics. The core product is Root Car Insurance, complemented by supplementary coverage add-ons including Renters Insurance, Roadside Assistance, SR-22 Filing, and Collision Deductible Waiver. Distribution occurs through multiple channels: direct-to-consumer via the mobile app, independent insurance agents through comparative raters (EZLynx, PL Rating) and API platforms (First Connect), and embedded insurance partnerships with automotive/fintech platforms (Carvana Insurance Built with Root, Kikoff Embedded Insurance, Freeway Insurance). The company leverages telematics technology, AI-driven pricing models, and automated claims processing as core differentiators.

Differentiator

Problem solved

Functional benefit

Brands

• Carvana Insurance Built with Root: Embedded insurance partnership product offered through Carvana's car-buying platform, allowing customers to purchase insurance in just three clicks during the car purchase process.
• Hyundai Capital America Partnership

Products and services

• Root Car Insurance Mobile-based auto insurance that prices 6-month term policies primarily on driving behavior measured through smartphone sensors during a Test Drive period, instead of on demographics such as age, credit score, or ZIP code. Sold directly to individual drivers in 36 U.S. states via the Root iOS/Android app and website.
• Renters Insurance

Quantifiable outcome

• Safe drivers can save up to $1,200/year
• +4 more outcomes

Named customers6 records

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

AI capability7 records

Feature5 records

Partnerships

Eleven partnerships are on record, tiered minor and core.

• Hugo InsuranceminorGTM or Marketing Partner · 4 June 2026Partnership where Root serves as expanded full coverage option for Hugo customers, giving drivers access to coverage through Hugo's digital platform in 16 states where Hugo operates. Combines Hugo's flexible liability insurance with Root's full coverage offering.
• Freeway InsurancecoreChannel Partner/ Reseller/ Distributor · 11 May 2026Integration into Freeway's multi-carrier marketplace, the nation's largest personal lines insurance distribution platform. Enables customers nationwide to access Root insurance through online, call centers, and local retail offices with bilingual support.
• Chip Ganassi RacingminorGTM or Marketing Partner · 29 April 2026Motorsport partnership where Chip Ganassi Racing won the 2025 Indianapolis 500. New writings in partnership channel nearly tripled in 2025. Partnership viewed as extending beyond race day exposure to strengthening relationships across automotive and technology sectors.
• Meyer Shank RacingminorGTM or Marketing Partner · 29 April 2026Motorsport partnership where Meyer Shank Racing won the 2026 Indianapolis 500. Partnership accelerates Root's embedded insurance and distribution footprint nationwide.
• CarvanacoreOEM/ Whitelabel/ Licensing Partner · 14 April 2026Embedded insurance partnership 'Carvana Insurance Built with Root' surpassed 200,000 policies sold. Industry's first deep technical integration between a national car retailer and digital-first insurer, offering fully integrated 3-click insurance purchase at point of car sale across 36 states.
• ToyotacoreTechnology or Integration · 26 February 2026Data partnership enabling eligible Toyota and Lexus vehicle owners to receive instant telematics-based insurance quotes using connected car data. New data partnership as part of Root's connected vehicle ecosystem strategy.
• KikoffminorGTM or Marketing Partner · 13 January 2026Integration of Root's auto insurance quoting and purchase experience directly into Kikoff platform. Kikoff's 4+ million financially engaged customers can access instant, personalized car insurance quotes within the Kikoff app using Root's data-driven pricing.
• EZLynx and PL RatingcoreChannel Partner/ Reseller/ Distributor · 6 August 2025Integration with industry-leading comparative raters allowing independent agents to quote and bind Root policies. Available in 23 states with plans for nationwide expansion. Root had already appointed 7,000+ agents since entering agency channel in 2024.
• ExperiancoreChannel Partner/ Reseller/ Distributor · 29 April 2025Root added to Experian's auto insurance portfolio, expanding access for consumers through Experian's consumer financial services ecosystem.
• Hyundai Capital AmericacoreStrategic or Co-development Partner · 2 April 2025Strategic partnership combining Hyundai Capital America's auto finance leadership with Root's mobile technology and customer-focused insurance models. Aims to deliver data-driven, competitive rates and personalized technology-driven solutions while enhancing vehicle ownership experience.
• First ConnectminorChannel Partner/ Reseller/ Distributor · 5 September 2024API-powered auto insurance quote and bind capabilities for independent insurance agents. Initially launched in California with plans to expand to 25 additional states by end of October 2024.

Scale indicators17 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Branch Insurance: Branch is a digital-first insurance company offering bundling of home and auto with an embedded distribution strategy. Its mobile-first acquisition and bundling approach parallels Root's tech-led model and omnichannel push.
• Progressive: Progressive is one of the largest US auto insurers and operates Snapshot, a long-running telematics-based usage-based insurance product. It is the most direct comparable to Root given its scale in auto and use of driving-behavior pricing, though it also sells through traditional channels.
• Metromile: Metromile pioneered pay-per-mile auto insurance with telematics-based pricing, closely mirroring Root's model of measuring actual driving behavior to price risk. Both companies are digital-first auto insurers targeting lower-mileage drivers.
• Clearcover: Clearcover is an AI-driven auto insurtech using a digital-first platform to offer competitive rates to good drivers. It targets a similar customer segment as Root and uses technology-led underwriting to reduce costs.
• Hugo Insurance: Hugo Insurance is a pay-at-your-pace liability auto insurer that partners with Root to offer Root's full coverage as an upgrade. Both target digitally savvy drivers seeking non-traditional insurance models.

Emerging players

• Lemonade: Lemonade is a digital insurance company using AI-driven underwriting initially in renters and homeowners, now expanding into auto. Its mobile-first, technology-led model and ongoing entry into auto insurance makes it a relevant emerging comparable.

Broad incumbents

• Allstate: Allstate is a major national P&C insurer that operates Drivewise, its own telematics-based pricing program. As a broad incumbent with significantly more scale and channels, it competes with Root on auto insurance while also offering home and other lines.
• State Farm: State Farm is the largest US personal lines insurer, with a captive agent distribution model and a Drive Safe & Save telematics program. It represents the dominant incumbent in auto insurance that Root is attempting to disrupt.
• GEICO: GEICO is one of the largest auto insurers in the US with a direct-to-consumer digital model and a DriveEasy telematics program. As a low-cost direct auto insurer with massive scale, it is a critical benchmark for Root's digital strategy.
• Liberty Mutual: Liberty Mutual is a major US P&C insurer offering personal and commercial auto with RightTrack, its telematics-based pricing program. As a broad incumbent with telematics capabilities, it competes across multiple customer segments that Root also targets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/rootinsurance
• Xx.com/joinroot

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries5 records

Funding overview

Funding rounds7 records

Investors11 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Root Insurance