2016

• Root Insurance was founded in 2015 but launched in October 2016 at Columbus, Ohio with the aim of entirely selling insurance via smartphone.
• At the time it launched, Root Insurance only catered to Ohio alone and mentioned that it would expand to Illinois next.
• A few months after it launched, it already had about 20 employees, raised up to $7 million and expressed its plans to expand nationwide the following year.

2017

• By June 2017, Root Insurance announced that it launched in Arizona. A month before, it received $21.5 million in its Series B funding.
• In August 2017, the company expanded to Indiana.  
• Root Insurance expanded to Oklahoma, Illinois, and Utah by October 2017.  
• By the end of 2017, Root Insurance was accepted for coverage in three additional states, Mississippi, Kentucky, and Texas. 
• In total, the company offered its services to nine states when 2017 came to an end.

2018

• In March 2018, Root Insurance raised $51 million in a Series C funding and announced its expansion to Louisiana.
• The company launched in Missouri and New Mexico by April 2018.  
• In June 2018, Root Insurance launched in Iowa.
• Root Insurance was accepted for coverage in a total of 19 states by July 2018. They include Montana, North Dakota, Utah, Arizona, New Mexico, Oklahoma, Texas, Iowa, Missouri, Arkansas, Louisiana, Mississippi, Illinois, Indiana, Ohio, Kentucky, Pennsylvania, Delaware, and Maryland.
• The company reported that it would be expanding to Oregon, Alaska, Nebraska, Connecticut, and North Carolina next.  
• By August 2018, Root Insurance expanded to Oregon, raised a total of $100 million in a Series D funding and had a $1 billion valuation.
• The company expanded to South Carolina by the end of 2018. In total, Root Insurance was accepted for coverage in 21 states. It mentioned that it would expand to all 50 states by the end of 2019.

2019

• By July 2019, Root Insurance started offering its services to three more states in the US - Georgia, Nebraska, and Connecticut making 25 states in total.
• In September 2019, the company raised $350 million in a Series E funding led by Coatue and DST Global. It had a $3 billion valuation at the time.
• Currently, Root insurance is accepted for coverage in roughly 29 states; Montana, California, Nevada, North Dakota, Utah, Arizona, New Mexico, Colorado, Oklahoma, Texas, Iowa, Missouri, Arkansas, Louisiana, Mississippi, Illinois, Indiana, Ohio, Kentucky, Oregon, Alaska, Nebraska, Georgia, Tennessee, Virginia, Connecticut, Pennsylvania, Delaware, and Maryland.
• Within the next few months, Root Insurance plans to expand to Washington, Alaska, Hawaii, Alabama, North Carolina, DC, New Hampshire, Massachusetts, and West Virginia.

POSITIVE PERCEPTIONS

• The top 20% of drivers for "safe practices can save as much as 50% or more on their car insurance rates."
• Root Insurance processes policyholder's claims within 10 business days, which is below the industry's multi-week norm.
• Root Insurance includes free roadside assistance in all its policies and this assistance can be accessed immediately via its app.
• Customer reviews show that Root Insurance's marketing is true to its word as drivers often receive significantly reduced prices in comparison to other carriers.
• A great benefit for Root Car Insurance's clients is that they have access 24/7 to telephone assistance for claims.
•  High-risk drivers, like teenagers, benefit from Root Insurance coverage as other companies ask high car insurance rates for this group.
•  One doesn't have to worry about its capacity to settle claims as it boasts of sound finances.
•  According to the National Association of Insurance Commissioners (NAIC), Root receives far fewer complaints than the average insurance company.
• The company is very responsive.
• Root Insurance is a very affordable car insurance company.
• It is reported that through its app, it is really easy to apply for insurance.

NEGATIVE PERCEPTIONS

•  Root has not yet rolled out nationwide, though in 2019 it is planning to do so. Root is currently accessible in a number of countries.
•  "They lure clients in with a low rate, then increase that rate double when it's time to renew."
• "Root collects tons of data about you by promising you a cheap rate, but after weeks of free data, Root's rates are 2-3 times more than initial rates."
• "The lower cost of auto insurance is a deception tool used by Root Insurance and an efficient baiting tool to suck top rated drivers in with an extremely low rate the first two months."
• "One of the things that makes people skeptical about Root car insurance is that they do not offer a lot of discounts."
• "They look at your current driving skills over your driving record."
• "They are unfairly collecting policy premiums after cancellation by not refunding entire premiums."
• Root Insurance has "false and misleading advertising."
• The major complaint from reviews by Root Insurance customers is that it takes a while to receive a quote.
• Root Insurance gives less importance to "traditional rating factors such as zip code, age of the driver and credit score," which is a benefit for drivers adversely affected by these variables as it is easier for them to save cash.
• No sales agent "is a con for people who prefer personal attention from a dedicated account rep before buying their insurance policy."
• "Until one completes the three-week test drive, you won't get a final quote from Root."
• A customer could complete the three-week test drive and end up being rejected.

RESEARCH STRATEGY

Offerings

• Root Insurance was founded as a car insurance company with the idea that people who "drive well are less likely to get into accidents, and that those people should pay less for insurance."
• The company also several coverages depending on the state, whether the car was leased or purchased right out, and several other factors.
• Root's coverages include bodily injury and property damage (required nationwide by law).
• It also offers personal injury protection, medical payments, and uninsured motorist property damage. 
• Other coverages include roadside assistance (included with every policy), rental, uninsured and underinsured motorist bodily injury, comprehensive, and collision.
• The company makes it clear that coverages depend on several factors and work on a "case-by-case basis."

How It Works

• The first step in using Root Insurance is downloading the app. 
• Next, customers use of the app to scan their driver's license. These customers will then wait for a few weeks for the company to assemble as much data as possible on their demographics and driving history.
• Within those weeks, customers will drive around in their car, as normal, with the Root app on.
• The Root app makes the user's phone a telematics device and gathers data on how the customer drives measured by driving patterns, braking, turns, acceleration, and several other driving activities. All this information is analyzed and factored in to determine a quote best suited for the customer.
• Root's main aim is to only insure good drivers - roughly 70%, and inform other drivers who are not as good about other carriers and options.
• Root Insurance does not consider this discriminatory. According to the company, "all carriers typically have target markets and underwriting guidelines." 
• Users can file insurance claims in three minutes using the Root app.

How Root is Disrupting the Insurance Market

• Root Insurance is an insurtech company that is disrupting the auto insurance market.
• It appears the company was formed with the primary purpose of disrupting the insurance industry. Its CEO mentioned working in insurance companies for decades and offering revolutionary ideas to these companies. The companies were, however, too scared to implement his ideas. Root's founder then decided to launch his own company that would redefine the insurance industry through software and analytics.  
• The company leverages an external tech disruption and "sensor data from devices both in-car and on-person" that has not been fully used in the insurance market.
• Its cleverness lies in its ability to know the difference between trips that the customer has done as a driver as opposed to trips they have done as passengers.
• Root Insurance makes good use of the three layer stack that the insurance industry has while most companies in the industry only use one or two layers. It "sells direct using online tools, collects premiums and then manages the claims process." The company is fully able to do all thus via the third layer, reinsurance.
• When Root Insurance launched in 2016, other insurers were strictly online or in person. Root entered and disrupted the insurance market by making sure its users can handle everything via an app on their smartphones.
• The company quickly gained traction in the insurance industry. It was included in a list of "startups providing mobile-centric insurance tech" in 2016.
• On average, Root Insurance saves up to 20% when compared to the normal insurance policy. The company has issued low premiums of up to $12 monthly.  
• Root's policies are also reinsured by Odyssey Re, Munich Re, and Maiden Re.  
• Root used both artificial intelligence and data science, technologies that are not used by a lot of companies in the insurance industry.

How Root Differs by State

• Root works the same way in all the states it offers its services to.
• The only thing that differs by state is the coverage it offers. Bodily injury and property damage are the only coverages offered in all the US states Root Insurance caters to.
• Personal injury protection is offered and required by law in 17 states. 
• Medical payments and uninsured motorist property damage are offered and required by law in eight states. 
• The other coverages, including comprehensive and collision, vary by state.