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.”
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