Root Expands Its Telematics Car Insurance to New Jersey, Its 37th State

Technology-driven insurer Root has launched its behavior-based car insurance in New Jersey, marking its 37th state.

Using mobile telematics, Root calculates its rates primarily on actual driving performance, such as focused driving, smooth braking, and gentle turns. The system can financially reward safe drivers. Safe drivers in New Jersey stand to realize potential annual savings of up to $1,300, according to the insurer.

Driver onboarding, customized coverage selection, policy management, and claims routing are handled entirely through Root’s mobile application.

“Expanding to New Jersey is a massive milestone in our state expansion strategy as we accelerate toward our goal of coverage in the contiguous U.S. by 2027,” said Alex Timm, founder and CEO of Root. “By entering the Garden State, we’re expanding our reach to a market historically characterized by limited consumer choice. Our ability to scale our behavioral pricing model demonstrates the efficiency of our technology and positions us to capture more market share.”

Root said it plans to further expand to Wyoming, Massachusetts, North Carolina, Michigan, Idaho, and Maine pending regulatory approvals.

Root said it plans to expand its independent agent distribution channel to 100,000 eligible producers. Appointments can be made in 24 hours.

Root also sells through relationships with Carvana, Toyota, and Hyundai Capital; this channel grew new writings nearly 30% year-over-year.

In May, Root Inc. reported first quarter 2026 net income of $35.9 million—the best quarterly result in the company’s history—compared with net income of $18.4 million for the same period in 2025.

For the first quarter, the combined ratio came in at 91.4 compared with 95.6 a year ago during the same time. Policies in force grew 9% to 495,429 “despite a challenging and increasingly competitive environment,” Timm said.

Root ended the year 2025 with record net income of $40.3 million, a 30% jump compared with $30.9 million for full-year 2024.

In a letter to shareholders, Root said its continued investment in its system puts it on track “to building an entirely automated insurance carrier.”

Root was founded in 2015 and is based in Columbus, Ohio.

Topics
Auto
New Jersey