Root Insurance is the first fully mobile licensed insurer in the country. We are based on the principle that car insurance rates should be based primarily on driving behavior and not on demographics. Using mobile technology and data science, Root provides good drivers with fair, personalized fares through an easy-to-use app.
Root Insurance asks drivers to download its mobile app and test drive it for a few weeks. Upon passing his driving test, he will receive a bonus based on the driving score calculated in the driving test, which distinguishes the traditional car insurance company. Root advocates lowering credit scores by fixing the amount auto insurers charge a customer to remove barriers related to racial and social inequality.
The company was founded by Alex Timm and Dan Manges in March 2015. In 2021, co-founder Dan Manges retired from the CTO and remained a consultant to the company in an advisory capacity until December 31, 2021.
The Root insurance company began offering a discount to Tesla drivers driving in Auto-Steer mode, making Root the first insurer to adjust premiums based on the crucial fact of whether the insured vehicle was in working order.
Root announced in 2021 that it has entered into an agreement with Carvana to develop customized auto insurance programs for Carvana’s online car shopping platform. The deal includes a $126 million investment by Carvana with a 5% stake in Root. The collaboration plan is to leverage technologies from both companies to develop an integrated experience for customers at the point of purchase of a car through Carvana.
On January 26, 2022, Root took out a five-year, $300 million loan from BlackRock. Term loans have a maturity date of January 27, 2027.
The root is headquartered in Columbus, Ohio, with renter Arkansas, Missouri, Ohio, Georgia, Kentucky, Nevada, the state of Tennessee, and Utah, and auto insurance is currently available for drivers in Arizona, Arkansas, Wisconsin, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, New Mexico, Nevada, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and West Virginia.