24 January 2018Insurance

US motor insurtech Root expands reach

Root Insurance, a car insurance company that operates entirely via mobile technology, has added availability in four new states in the US.

The company now offers insurance to nearly 30 million more drivers across Pennsylvania, Texas, Kentucky and Mississippi, according to a Jan. 23 press release. Drivers in ten total states are now eligible to download the Root app and save up to 52 percent on their premiums, according to the company.

Root Insurance sets rates based primarily on actual driving behavior, using variables that drivers control to give “fair and accurate auto insurance rates.” Since Root’s launch in Ohio, the insurtech startup has experienced continued growth, expanding to nine additional states, including Arizona, Indiana, Utah, Illinois, Oklahoma, Pennsylvania, Texas, Kentucky, and Mississippi. In the coming months, Root plans to roll out in at least four additional states, namely Louisiana, North Dakota, Arkansas, Maryland.

“We designed Root to grow nationwide,” said Root co-founder and CEO Alex Timm. “Because our insurance system is built on cutting-edge technology, it's fast, agile and scales efficiently.”

While most traditional insurers calculate rates by categorizing drivers into demographic risk pools, Root takes a personalized approach by using mobile technology to accurately understand which drivers are least likely to be involved in road incidents. Root offers discounts for safe driving behavior and provides a discount for drivers using cars with automated driving features.

“We’re embracing technology and preparing for the future of the road,” said Dan Manges, co-founder and chief technology officer. “Our customers report saving an average of $784 annually through Root. Using mobile tools and data analysis, we can reward good drivers who have been keeping our roads safe.”

Join us at Intelligent Automation in Insurance - London 2018.  Book by Jan 31st and you could save £400.

More of today's news

AXIS A&H CEO leaves amid restructuring

Bermuda re/insurers’ 2017 combined ratio jumps

Stephen Catlin re-emerges at private equity firm

Qatar Insurance Group expands despite challenging 2017

Former Travelers Canada CEO to head up P&C at Kemper

Lloyd's approves Axon Underwriting as a coverholder

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
5 June 2020   Root extends its service portfolio by offering homeowners insurance in 13 US states.
Insurance
23 August 2018   Root Insurance, a car insurance startup that operates entirely via mobile technology, has raised $100 million in Series D funding, pushing the insurtech's valuation to $1 billion.
Insurance
24 January 2018   Israeli insurtech startup Nexar has raised $30 million in Series B funding to support its next phase of expansion while appointing new members to the executive team.