Root steers GM drivers to UBI with RootReady

Auto insurtech Root is allowing new customers to use the driving data from some connected vehicles to determine eligibility for its usage-based insurance program through the newly launched RootReady initiative.

Root traditionally only used data recorded by the company’s mobile app during a test drive to determine quotes and coverage. Now, drivers with General Motors cars bought after 2015 can opt in to the RootReady program using data their cars already collect.

The user experience for RootReady is still contained within the app, according to Maria Martonffy, Director of Business Development at Root. The app informs drivers with eligible vehicles that they can skip the test drive and asks if they want to proceed with RootReady. More than 85% of drivers prompted with RootReady chose the immediate quote rather than the test drive, according to the June 10 press release.

“We are full telematics first, which is why specifically for this program, it's such a nice option for users to be able to have the benefit of being quoted fairly on telematics instantly,” said Maria Martonffy. “They get to use the car they already have to get this immediate quote. That is fair and final and quick.”

RootReady is the first time that the company has used third-party data to quote and price policies, according to Martonffy. The company plans to expand the RootReady program to other automotive brands and as many customers as possible, she added, describing expansion as a “priority.”

“I think, when we think about driving in general, we know that unconnected cars that run on dead dinosaurs are getting phased out,” said Martonffy. “We know that we're ready to use the tools that users already have to quote them fairly and quote them faster. And we know that connectivity is increasing.”

More than 270 million connected cars are expected to ship between 2020 and 2025, according to research released in 2020 by analyst firm Counterpoint’s Smart Automotive service.

“Root has been built to fundamentally understand the intersection of data and telematics,” said Alex Timm, Root CEO in a statement. “Our expertise and understanding in rating driving behavior allows us to leverage the rich data from OEMs to more fairly price drivers, and positions us to extend our leadership as the data gets better.”