Root Insurance

Usage-based car insurance company using AI and telematics to price policies based on actual drivi...

Root Insurance is a usage-based car insurance company that prices policies based on actual driving behavior tracked through a smartphone app. Drivers complete a test drive period and Root uses AI to analyze factors like braking, turning, and time of day to set individual rates rather than relying on demographic proxies. Good drivers typically pay less than they would with traditional insurers, while the model helps Root avoid subsidizing high-risk behavior.