Root Insurance and Carvana announced on April 14, 2026 that their embedded insurance partnership has surpassed 200,000 policies sold across 36 states. Carvana's 596,641 car buyers in 2025 can now purchase auto insurance in 3 clicks at checkout, powered by Root's telematics-based pricing engine built on 36 billion miles of driving data.
- 200,000+ policies sold through Carvana Insurance Built with Root since the partnership launched in July 2022
- Root serves as the exclusive embedded insurer for Carvana in 36 states, offering a 3-click purchase at checkout
- Root's full-coverage average costs $1,120/year, roughly 53% below the $2,400 national average, according to Insurify and AutoInsurance.org
- The embedded insurance market is projected to grow at a 30.47% CAGR through 2035, according to Precedence Research
Root and Carvana Reach 200,000-Policy Milestone
Root Insurance (NASDAQ: ROOT) and Carvana (NYSE: CVNA) confirmed on April 14, 2026 that their exclusive partnership, Carvana Insurance Built with Root, has surpassed 200,000 policies. The milestone marks the largest embedded auto insurance integration between a national online car retailer and a digital-first insurer in the U.S.
"This milestone is a strong reflection of the success and momentum of our collaboration with Carvana," said Alex Timm, Founder and CEO of Root. Carvana CEO Ernie Garcia called the partnership proof of "what's possible when you build for the customer with a like-minded partner."
Root operates as Carvana's exclusive embedded insurance provider in 36 states where the insurer currently writes policies. Carvana sold 596,641 vehicles in 2025 (a 43% increase over 2024, per Carvana's Q4 earnings report), generating $20.3 billion in revenue. With 200,000 policies sold, roughly one in three Carvana buyers in those states opted for embedded coverage at checkout.
How the 3-Click Embedded Insurance Works
Traditional car buying requires a separate, multi-step insurance shopping process that averages 24 screens of data entry, according to Root's product documentation. Carvana Insurance Built with Root condenses that flow into 3 steps by pre-filling customer data already collected during the vehicle purchase.
After selecting a car on Carvana's platform, buyers see a personalized Root insurance quote integrated directly into the checkout. Root's pricing engine uses telematics data from 36 billion miles of driving behavior collected through 17 million+ app downloads since 2015. Coverage options include liability, collision, comprehensive, rental car, and roadside assistance.
Polly's 2026 Embedded Auto Insurance Study, which surveyed 1,055 recent franchise-dealership buyers, found that 76% of car buyers report higher satisfaction when a dealer or retailer provides an insurance solution at the point of sale. That same study revealed 59% of buyers say insurance costs delayed their vehicle purchase in 2026, up from 38% the prior year.
Root's Pricing: Telematics vs. Traditional Carriers
Root built its entire business around behavior-based pricing. Every customer completes a "test drive" through the Root app, which monitors braking patterns, phone usage, and driving speed before generating a quote. Safe drivers who switch to Root save up to 28% on premiums, according to Root's April 2026 Consumer Demand Report.
| Carrier | Avg. Full Coverage (Annual) | Pricing Model | Telematics Program |
|---|---|---|---|
| Root | $1,120 | 100% behavior-based | Required for all quotes |
| GEICO | $1,530 | Demographic + optional telematics | DriveEasy (optional) |
| Progressive | $1,380 | Demographic + optional telematics | Snapshot (optional) |
| State Farm | $1,640 | Demographic + optional telematics | Drive Safe & Save (optional) |
| National Average | $2,400 | Primarily demographic | Varies |
Sources: The Zebra, Insurify, and AutoInsurance.org rate data for 2026. Rates reflect averages for drivers ages 25-65 with clean records and good credit. Full coverage includes liability, collision, and comprehensive.
A Root Consumer Demand Report released April 21, 2026 found that 95% of drivers want rates based on actual driving habits. Baby Boomers are 2.2 times more likely than Gen Z drivers to call the current demographic-based pricing system unfair, according to the same report's survey of approximately 1,000 respondents.
The Embedded Insurance Market Is Accelerating
Precedence Research valued the global embedded insurance market at $144.62 billion in 2025, projecting growth to $188.69 billion in 2026 at a 30.47% compound annual growth rate through 2035. Deloitte estimates at least 20% of all auto insurance will be purchased through embedded channels at OEMs and dealerships within five years.
Root is not the only company pursuing this model. Telematics-based carriers and programs from Progressive, State Farm, and Allstate already offer app-based pricing. Polly, a Vermont-based insurtech, powers embedded insurance at franchise dealerships and found that dealers offering insurance quotes see a 20% lift in F&I gross profit, adding an average of $313 per deal.
Root's 2025 financial results show the strategy is working from the insurer side. The company reported $1.52 billion in revenue (up 29% from 2024), net income of $40.3 million, and 481,869 policies in force, according to Root's annual SEC filing. Adjusted EBITDA reached $132 million with a net combined ratio of 98.2%.
Should You Buy Insurance at the Carvana Checkout?
Convenience is the primary selling point. Carvana Insurance Built with Root eliminates the scramble to find coverage between purchasing a car and picking it up. Polly's study found that 35% of recent car buyers delayed or walked away from a deal entirely due to insurance complications.
The risk is skipping comparison shopping. That same Polly study revealed 79% of buyers believe they already have the best insurance rate, yet 68% find savings when they actually shop around. With 33% of drivers planning to switch insurers in early 2026 (a record high, per CivicScience), the market favors buyers who compare at least 3 quotes before committing.
Root's embedded quote may be competitive for safe drivers, but it reflects one carrier's price. Compare liability limits, deductibles, and add-ons against quotes from at least 2 other insurers before accepting. Drivers who compare quotes from 3+ carriers save $300 to $700 per year on average, according to The Zebra.
What You Should Do Now
Get the Carvana Quote, Then Pause
If buying through Carvana, view the Root-powered quote at checkout. Write down the coverage limits, deductible, and monthly premium before proceeding. Root's average full-coverage rate of $1,120/year gives you a benchmark.
Compare Against 2 to 3 Other Carriers
Get quotes from GEICO, Progressive, and your current insurer using the same coverage levels. CivicScience data shows 33% of consumers are actively shopping for better rates in 2026, and carriers are competing aggressively on price.
Check for Telematics Discounts Elsewhere
Root requires a telematics test drive for every quote. Progressive's Snapshot and State Farm's Drive Safe & Save offer similar behavior-based discounts as optional add-ons that can reduce premiums 10% to 30% for safe drivers.
Verify State Availability
Root currently writes policies in 36 states. California buyers and residents of 14 other states cannot access Carvana Insurance Built with Root and will need to arrange coverage independently before delivery.
Looking Ahead
Root is scheduled to report Q1 2026 earnings in May, which will provide the first detailed look at embedded channel growth after the 200,000-policy milestone. Carvana's own 2026 guidance projects "significant growth" in both retail units and profitability, per its February 2026 earnings call.
The broader embedded insurance trend extends beyond Carvana. Toyota and Lexus have already partnered with Root for connected-vehicle data sharing, signaling that OEM-to-insurer integrations could follow the same embedded model. Mordor Intelligence reports that online and API-first insurance placements held 76.38% market share in 2025, up from roughly 60% in 2023.
For consumers, the bottom line is straightforward: embedded insurance solves a real friction point in the car-buying process, and Root's 53%-below-average pricing rewards safe drivers. Checking that price against 2 to 3 competitors before accepting takes 15 minutes and could save $300 to $700 annually, according to The Zebra's 2026 rate analysis.
Frequently Asked Questions
Root currently writes auto insurance in 36 states. California and 14 other states are excluded. Carvana buyers in those states need to arrange coverage from another carrier before their vehicle delivery date.
Root's average full-coverage premium is $1,120 per year, roughly 53% below the $2,400 national average, according to Insurify and AutoInsurance.org. Actual rates depend on driving behavior, location, vehicle type, and coverage level selected at checkout.
Yes. Root allows cancellation at any time through the Root app or by contacting customer service. You can switch to another carrier after purchase without penalty from Carvana, though you must maintain active insurance on a financed vehicle.
Carvana Insurance Built with Root uses pre-filled data from the vehicle purchase to generate an initial quote in 3 clicks. Root may use telematics data for ongoing rate adjustments, and the Root app collects driving behavior data to personalize pricing over time.
Compare the Root quote against at least 2 other carriers. Polly's 2026 study found 68% of buyers discover savings when they shop around, even though 79% assumed they already had the best rate. The embedded quote is a strong starting point, not the final answer.
- GlobeNewsWire - Root Insurance and Carvana Surpass 200,000 Policies (April 14, 2026)
- Carvana Investor Relations - Record Fourth Quarter and Full Year 2025 Results
- Root Inc. 2025 Annual Results - SEC Filing (Form 8-K)
- Root Consumer Demand Report - Baby Boomers 2.2x More Likely to Call Pricing Unfair (April 21, 2026)
- Polly 2026 Embedded Auto Insurance Study (Survey of 1,055 Buyers)
- Precedence Research - Embedded Insurance Market Size Forecast Through 2035
- Deloitte - Embedded Insurance Is Poised for Exponential Growth
- Mordor Intelligence - Embedded Insurance Market Outlook, 30%+ CAGR Through 2031