Root Insurance is a recently founded car insurance company looking to penetrate into the well-established car insurance market. Root Insurance is powered entirely by their mobile app. It is licensed in 44 states but currently operates in 34 of those states. Root Insurance customers are incentivized through downloading their app and completing certain requirements.

About

Root Insurance headquarters are based out of Columbus, Ohio. Root Insurance largest markets are Texas, Georgia, Colorado, Pennsylvania, Louisiana, Utah and Nevada. Root Insurance remains committed to embedded insurance, which made up for 41% of the companies new writing in Q4 of 2022 via Carvana. As of December 31, 2022, Root had 220,354 policies in force and $762.1 million in cash and cash equivalents.

History

Root Insurance was founded in March, 2015 by Alex Timm and Dan Manges. In 2021, Dan Manges co-founder retired as CTO but remained a consultant to the company through December, 2021. In August, 2021, Root announced a partnership deal with Carvana to develop personalized auto insurance for Carvana’s car-buying platform. The deal, formed around a $126 million investment fueled by Carvana for a 5% stake in Root initially, including warrants that can be exercised at certain stages when thresholds are struck. The collaboration uses both companies technology to develop an embedded experience for customers when purchasing a car with Carvana. In January, 2022, Root closed on a $300 million five-year term loan with BlackRock. The maturity of this term loan is January 27, 2027. On March 23, 2022, long-time Root Insurance C-Suite executive, Daniel Rosenthal resignation will take effect.

Sponsorships

In December, 2020,

23XI Racing 23XI Racing (pronounced twenty-three eleven) is an American professional auto racing organization that competes in the NASCAR Cup Series. It is owned and operated by Hall of Fame basketball player Michael Jordan, with current Joe Gibbs Racing dri ...

announced that Root will be one of the sponsors of the No. 23 Toyota Camry driven by Bubba Wallace. As of January, 2023, Root is no longer sponsoring 23XI Racing or Bubba Wallace.

References

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* Auto insurance in the United States Insurance companies of the United States Financial services companies established in 2015 2015 establishments in Ohio Financial services companies of the United States Companies based in the Columbus, Ohio metropolitan area American companies established in 2015 2020 initial public offerings {{insurance-company-stub