Touted as the first and only car insurance company to incorporate individual driving behavior in every quote, Root Insurance, closed $100 million in Series D funding. This latest round, led by Tiger Global Management, raises Root’s valuation to $1 billion. Redpoint Ventures, Ribbit Capital, and Scale Venture Partners all participated as follow-on investors in the round.
Founded in 2015, Root uses smartphone technology to understand individual driving behavior. Customers obtain their personalized quote after a two-to-three week test drive, and they can purchase and manage their policy entirely within the Root mobile app. With Root’s approach, good drivers can possibly save 50 percent compared to traditional insurance carriers in the $250 billion U.S. auto insurance industry.
According to the company, the funds will be used to deepen penetration in existing markets, expand into new states, and fuel hiring plans, with a focus on engineers, actuaries, claims, and customer service to support increased scale.