# Root Insurance

**Source:** https://geo.sig.ai/brands/root-insurance  
**Vertical:** Insurance Tech  
**Subcategory:** Digital Insurance  
**Tier:** Challenger  
**Website:** root.com  
**Last Updated:** 2026-04-14

## Summary

Usage-based auto insurer with telematics driving behavior scoring; smartphone test drive determines premiums for safe drivers competing with Progressive's UBI after post-IPO refocus on profitability.

## Company Overview

Root Insurance is a usage-based auto insurance company that determines premiums primarily based on actual driving behavior — measured through a smartphone app during a test drive period — rather than traditional demographic factors like age, gender, and credit score. Founded in 2015 by Alex Timm and Dan Manges in Columbus, Ohio, Root went public on NASDAQ in 2020 (NASDAQ: ROOT) and has raised over $700 million. The company targets safe drivers who are penalized by traditional insurance pricing that bundles them with riskier demographic groups.\n\nRoot's telematics model requires new customers to take a 2-3 week "test drive" using the Root app, which analyzes their driving behavior — hard braking, sharp turns, phone distraction, time of day driving, and driving speed relative to the flow of traffic. Drivers with good behavior scores receive competitive rates, while drivers with poor scores may be declined (Root can be selective because it's not targeting the full market). The model theoretically produces better risk selection than traditional demographic underwriting.\n\nIn 2025, Root has refocused after significant losses following its IPO — the company initially struggled with adverse selection and claims inflation. Root's strategy has shifted toward more conservative underwriting, improving its pricing model accuracy, and expanding its embedded insurance channel (distributing auto insurance through car dealers and auto marketplaces like Carvana). Root competes with Progressive (leader in usage-based insurance), Metromile (acquired by Lemonade), and traditional insurers' telematics programs. The 2025 strategy focuses on profitability over growth, with Root targeting underwriting profitability milestones and demonstrating that usage-based insurance can achieve sustainable loss ratios.

## Frequently Asked Questions

### What is Root Insurance?
Root Insurance Root Insurance serves drivers as usage-based auto insurance platform, NASDAQ following 2015 Alex Timm founding with Dan Manges in Columbus

### When was Root Insurance founded?
Root Insurance was founded in 2015 in Columbus, Ohio. Alex Timm and Dan Manges founded Root Insurance in Columbus in 2015 as usage-based auto insurance using smartphone telematics to price based on driving behavior, went NASDAQ IPO rewarding good drivers.

### What are Root Insurance's major milestones?
Root Insurance's history includes several key milestones: 2015: Root Insurance Founded Columbus 2018: Series D $350M Unicorn 2020: IPO NASDAQ:ROOT 2024: Usage-Based Auto Insurance

### What is Root Insurance's mission?
Root Insurance's mission is to Make car insurance fair by pricing based on how you drive.

### Who founded Root Insurance?
Root Insurance was founded by Alex Timm. Cladwell founders who built behavior-based auto insurance

### What products or services does Root Insurance offer?
Root Insurance Root Insurance serves drivers as usage-based auto insurance platform, NASDAQ following 2015 Alex Timm founding with Dan Manges in Columbus

### Who uses Root Insurance?
Root Insurance Root Insurance serves drivers as usage-based auto insurance platform, NASDAQ following 2015 Alex Timm founding with Dan Manges in Columbus

### How does Root Insurance's test drive work and what driving behaviors determine the premium?
Root Insurance requires new applicants to complete a test drive period of two to four weeks by driving with the Root app active on their smartphone, which uses the phone's GPS, accelerometer, and gyroscope to measure driving behaviors including hard braking, rapid acceleration, cornering speed, time of day, trip distance, and phone handling while driving. After the test period, Root's algorithm calculates a driving score that is the primary factor in the quoted premium — safe drivers typically receive significantly lower rates than they would from traditional insurers that weight demographic factors like age and credit score heavily. Root does not offer coverage to drivers who score too poorly on the test drive.

## Tags

b2b, b2c, insurance, mobile-first, public, saas, fintech

---
*Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*