Root Insurance auto insurance

Overview

Root, Inc. is a publicly traded technology insurance company (NASDAQ: ROOT) based in Columbus, Ohio, built on the idea that car insurance rates should depend mainly on how you drive rather than on demographics. Its insurance companies ranked #29 among U.S. private passenger auto insurers by 2025 direct premiums written according to NAIC market share data, with $1.22 billion in auto premiums and a 0.33% national share.

Root sells auto and renters insurance. Most new customers can take a "test drive" in which the Root app uses smartphone sensors to measure driving habits before setting a price, a form of usage-based insurance. As of mid-2026 Root operated in 37 states covering more than 80% of the U.S. population and had 484,000 auto policies in force. It reaches customers directly through its app, through embedded partnerships at the point of car purchase, through comparison marketplaces and through independent agents; partner and agent channels produced about 51% of new policies in the second quarter of 2026.

History

Root was founded in 2015 and is led by chief executive Alexander Timm. It went public on Nasdaq, and in October 2021 it formed a partnership with online car retailer Carvana, which built "Carvana Insurance built with Root" into its car-buying process. Root has since added partnerships with Hyundai Capital America, Toyota, Experian and, in 2026, the insurance shopping platform Jerry. See embedded insurance: buying coverage from automakers and dealers for how these point-of-sale programs work.

Growth came at a heavy cost. Root lost money every year from its incorporation in 2015 through the second quarter of 2024, and its accumulated deficit stood at $1.64 billion at the end of 2025. It has since turned profitable: net income was $30.9 million in 2024, $40.3 million in 2025 and $25 million in the second quarter of 2026 alone. It launched in New Jersey in the second quarter of 2026, bringing it to 37 states, and says it intends to operate in all 50 states and Washington, D.C., eventually.

Root writes policies through three insurance subsidiaries: Root Insurance Company and Root Property & Casualty Insurance Company, both domiciled in Ohio, and Root Florida Insurance Company. In Texas it acts as a managing general agent, with policies underwritten by Redpoint County Mutual Insurance Company, a county mutual insurance company fronting arrangement. It also uses its own Cayman Islands reinsurer, Root Re.

Auto insurance coverage

Root offers the standard coverages: bodily injury and property damage liability, collision, comprehensive, rental coverage, uninsured motorist property damage, personal injury protection, medical payments and uninsured/underinsured motorist bodily injury. Roadside assistance is sold as separate optional coverage and requested through the app. Customers can adjust coverage limits in the app and see how the price changes.

Root's product list is narrower than a traditional carrier's. It does not sell homeowners insurance, so households wanting a home-and-auto bundle with one company will need another insurer, though renters insurance is available.

Discounts and programs

Root's main pricing tool is the test drive. Over roughly two to four weeks, the app records braking, consistency, turning, time of day and attentiveness, with smooth braking weighted most heavily. Root says completing the test drive can cut up to 44% off the initial Root quote for its best drivers. Drivers who need coverage immediately can buy a policy without it, and the test drive may not be available for policies bought through an agent. Telematics is not used for California or Maryland customers; California prohibits the use of driving data in pricing. For background on what driving apps collect, see what driving apps collect and how insurers use it.

Root says it builds discounts into the quote rather than asking customers to request them. Discounts it names include a renters-and-auto bundle and paying the premium in full, and a referral program pays existing customers who refer new ones.

Claims

Claims are filed in the Root app or online, a process Root says takes about three minutes, with photos of the damage uploaded directly. A claims representative then calls to complete the claim, and status updates come by email and in the app. Payment can be made by check or electronically, and customers choose their own repair shop. New claims can also be reported at 866-980-9431 and existing claims handled at 866-489-1985. People who are not Root customers but were in an accident with one can file online.

Ratings and reputation

Root's financial track record is short and uneven: years of large losses followed by profitability since mid-2024. Its annual report notes that, because of the company's short operating history, some state regulators require its insurers to hold risk-based capital above the usual minimum, and that its business depends on regulators continuing to allow telematics-based pricing.

Root was not ranked in the J.D. Power 2026 U.S. Auto Insurance Study's regional rankings or in the J.D. Power 2025 U.S. Auto Claims Satisfaction Study. Read digital-first car insurers: how the insurtechs work for how digital-first insurers compare with traditional carriers.

Who it suits

Root suits drivers with clean habits behind the wheel who are comfortable letting an app monitor their driving for a few weeks and who prefer handling insurance on a phone. Car buyers on Carvana and similar platforms may meet Root at checkout. It suits less well drivers who want a local agent, a home-and-auto bundle, or coverage in Massachusetts, New York or other states where Root does not yet operate.

• Strengths: Pricing based mainly on measured driving behavior, with up to 44% off for top test-drive scores; fast app-based quoting and claims; profitable since 2024; growing access through partners and independent agents.
• Weaknesses: Available in only 37 states; no homeowners insurance for bundling; telematics pricing not used in California or Maryland; short track record that included large losses through mid-2024; not ranked by J.D. Power.

How to contact Root Insurance