Root Insurance announced its closing of $51mn Series C funding round led by RedPoint Ventures. The company is known for incorporating individual driving behavior in every quote. Root plans to use the new funding to expand into additional states and continue its technology investment to improve customer experience.
The company specializes in full-stack automobile insurance offering based on the principle fundamental of fairness and transparency. Its USP is the use of its proprietary mobile app to give drivers customized quotes based on drivers actual driving behavior.
Root uses smartphone technology and data science to understand actual driving behavior, the primary factor in determining personal automobile insurance rates.
Since its launch in Ohio in 2016, Root’s offering is now available in 11 states and is poised to be available across whole America in 2019. In 2017, Root became the first insurance company in the nation to offer a discount for the use of Tesla’s AutoPilot technology.
“As Root reinvents car insurance, we are excited to have Redpoint and ScaleVP add to the experience and expertise provided by our current investors…Our technology allows us to give drivers rates based primarily on factors they can actually control, bringing fairness to a broken and antiquated industry. We are leveraging mobile technology and artificial intelligence to reimagine the way insurance works.”, said Alex Timm, CEO and Co-Founder of Root.
