Startup Auto Insurer Root Targets Good Drivers with Smartphones

By | October 25, 2016

  • October 25, 2016 at 1:19 pm
    Agency says:
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    There will be issues with this model and it will not see an Uber type success. Keep in mind, the best clients want their agent to handle their home and umbrella policies (best clients get umbrella policies). Uber came in because the Taxi business was broken which had long waits and would overcharge people. This is not the case with insurance. They will attract a younger crowd that is not a homeowner and this will not be the best business, let alone I don’t see any huge success here.

    • October 26, 2016 at 9:35 am
      CL PM says:
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      Agency – Please tell me how you define “best business.” Thanks.

  • October 25, 2016 at 2:20 pm
    agent2 says:
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    this is taking “niche” marketing to a new level that’s supported by nothing.

    Suppose I’ll start one selling to people with cleft palates. they don’t have as many accidents.

    • October 25, 2016 at 2:34 pm
      Deplorables says:
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      Not a sound concept because their very drivers will be texting while driving which leads to even more accidents. This is just another puff piece on start ups like Lemonade.

      • October 25, 2016 at 6:13 pm
        actu says:
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        Can you explain what exactly you think Lemonade does?

  • October 25, 2016 at 4:10 pm
    vox sanitus says:
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    Regretfully, one cannot take a short position on a start up. If you could I’d be in tall cotton. Anybody out there know how to go short on a startup?

  • November 1, 2016 at 12:37 pm
    Why Not? says:
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    I find it interesting that many traditional agents choose to dismiss these concepts so easily, relying on their “experience” to forecast the future. I’d encourage these agents to research the newer concepts like telematics and identify what percentage of new auto sales are being captured in more of a direct sales format (like Root & Lemonade). Can you be so confident that the next generation of consumers (all 48 million of them) will be as likely to gravitate toward a traditional agent, particularly when they discover that they are more informed, pay for their personal risk profile and are rewarded with lower premiums? Remember, the music industry didn’t change until Steve Jobs and Apple demonstrated convenience (service & selectivity), quality and expense savings to purchase songs. Could these companies demonstrate something similar for insurance?

  • December 13, 2016 at 4:08 pm
    Todd Bowling says:
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    This app, “Root”, is in direct breach of two patents. Good luck fighting your way in court. Maybe the Drive VC should have done their due diligence.

  • March 2, 2017 at 7:53 pm
    Nick says:
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    The Root idea is very interesting indeed. I for one would be very interested in joining a risk pool with only other drivers who have been vetted as top tier exposures…but doesn’t it go against the “point” of insurance? Wouldn’t it be ironic if the founder of Root was a fan of the ACA? Imagine how the ACA would fare if a similar vetting process were in place…

  • October 18, 2017 at 2:35 pm
    Tyson says:
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    I just got my policy today. Full coverage with a $250 deductible for a dollar less per month than I was paying for LIABILITY with Progressive.

    • April 9, 2018 at 9:51 am
      Anna Z says:
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      If you renewed, did the amount stay the same as when you first joined?



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