Root Reduces Auto Insurance Rates by 15% in Florida, Citing Impact of Legal Reforms

Root (NASDAQ: ROOT) announced a 15% average reduction in auto insurance base rates for Florida customers, effective immediately.

Rhea-AI Summary

Root (NASDAQ: ROOT) announced a 15% average reduction in auto insurance base rates for Florida customers, effective immediately. The company currently serves more than 52,000 Florida policyholders, with nearly all expected to see lower premiums and eligible customers projected to save about $400 per year on average.

According to Root, this equates to roughly $21 million in annualized customer savings and is enabled by Florida insurance reforms enacted in 2022 and 2023, which have reduced litigation-related costs and improved market stability. Root states that more predictable claims costs allow it to price risk more accurately and offer more competitive rates to safe drivers.

Positive

• 15% average auto rate reduction for Florida customers, affecting over 52,000 policyholders
• Customers projected annual savings of about $400 per policy, or roughly $21 million total

Negative

• None.

Argus Aug 28 session 14 alerts

+2.70% close to close 0.4x rel. volume Open Argus

Details

News Market Reaction – ROOT

-2.0% Trough in 2 hr 21 min

$865.45M Market Cap

On Aug 28, the first trading day after this news, ROOT closed 2.70% above the previous close. Argus tracked a trough of -2.0% from its starting point during tracking. Our momentum scanner recorded 14 alerts in the available session data.

Data tracked by StockTitan Argus for the Aug 28 session.

Key Figures

Florida premium reduction: 15% Florida policyholders: more than 52,000 policyholders Annual customer savings: about $400 per year +5 more

Florida premium reduction

15%

New Florida auto insurance rates

Florida policyholders

more than 52,000 policyholders

Root's Florida customer base

Annual customer savings

about $400 per year

Average savings for eligible customers

Annualized savings

approximately $21 million

Aggregate Florida customer savings

Reform enactment year

2022

Florida legislative reforms

Reform enactment year

2023

Florida legislative reforms

App downloads

more than 18 million downloads

Root app cumulative downloads

Driving data analyzed

more than 37 billion miles

Root's analyzed driving data

Historical Context

4 past events · Latest: Aug 12

4 events

1. Aug 12

   Distribution partnership

   24h Move

   -6.4%

   Root and TheZebra.com integrated personalized quotes into an online comparison marketplace.

2. Aug 05

   Quarterly results

   24h Move

   -16.2%

   Root announced second-quarter results and scheduled a conference call to discuss operations.

3. Jul 22

   State expansion

   24h Move

   -0.6%

   Root launched behavior-based insurance in New Jersey, expanding its footprint to 37 states.

4. Jul 08

   Embedded partnership

   24h Move

   +4.1%

   Root and Jerry embedded Root insurance quotes and policy binding into Jerry's application.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

policyholders, base rate, underwriting

3 terms

policyholders financial

"today serves more than 52,000 policyholders in the state"

Individuals or organizations that have an active insurance contract with an insurer, are listed as the named insured on the policy, pay premiums, and are entitled to the coverage and claim payments specified in that contract. They matter to investors because the size, composition, and claims behavior of a company’s policyholder base directly affect revenue, cash flow, risk exposure, reserve needs and pricing power—similar to how subscribers determine the health of a subscription business.

base rate financial

"Root’s 15% base rate reduction is a reflection of this progress"

The base rate is the primary interest rate set by a central authority or used as a benchmark for pricing loans, savings and other financial products. Think of it as the anchor in a floating system: when the base rate moves, borrowing costs, corporate financing and consumer spending tend to shift too, which can change company profits and investor returns across the market.

underwriting financial

"through precise pricing, disciplined underwriting"

Underwriting is the process where a financial institution agrees to buy and then resell new stocks or bonds to investors. It matters because it helps companies raise money quickly and smoothly, while the bank takes on the risk of selling those securities at the agreed price. Think of it like a booker guaranteeing to sell all tickets for a concert before opening the doors.

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Florida insurance reforms and regulatory environment enable Root to deliver immediate savings to drivers as litigation costs decline

COLUMBUS, Ohio, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Root (NASDAQ: ROOT), the leading technology company in car insurance, today announced new rates that will reduce auto insurance premiums for Florida customers by 15% on average, with some policyholders seeing even more significant decreases.

Root has proudly served Florida drivers since 2022 and today serves more than 52,000 policyholders in the state, with nearly all indicated to see lower premiums as a result of the rate reductions. Eligible customers are expected to save about $400 per year on average, representing approximately $21 million in annualized savings.

Thanks to historic legislative reforms enacted in 2022 and 2023, Florida drivers are now seeing a more stable market and tangible benefits through lower insurance rates. Root’s 15% base rate reduction is a reflection of this progress. These reforms, spearheaded by Florida’s Governor, the Office of Insurance Regulation, and the Florida Legislature, address litigation-related costs that have historically contributed to higher insurance premiums. As costs decline, insurers can more accurately project future claims expenses and price coverage accordingly, creating opportunities to pass those savings on to consumers.

“We’re excited to reduce base rates by 15% for Florida customers and put money back in the hands of drivers,” said Alex Timm, Founder and CEO of Root. “Florida’s insurance market continues to improve as costs continue to decline under the reforms, and Root’s ability to accurately price risk allows us to reflect those improvements in what our customers pay.”

Root was built on the belief that car insurance should be priced more accurately and fairly based on individual risk. As Florida’s reforms help reduce costs and bring greater predictability to the insurance market, Root can translate those improvements into more competitive rates for safe drivers. Root remains focused on delivering value to Florida consumers through precise pricing, disciplined underwriting, and a continued commitment to rewarding safe driving.

About Root, Inc.

Root Insurance is a technology company revolutionizing car insurance through data science and automation. Founded in 2015 and based in Columbus, Ohio, Root, Inc. (NASDAQ: ROOT) is the parent company of Root Insurance Company. The Root app has reached more than 18 million downloads and has analyzed more than 37 billion miles of driving data to deliver personalized, easy, and fair pricing. For more information, visit root.com.

Contacts
Media:
press@joinroot.com

Root. Inc, Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws regarding Root, Inc. These forward-looking statements relate to, among other things, expectations about our future business results and the success of our business in Florida. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond the company's control and are difficult to predict. We have based our forward-looking statements on our current expectations, estimates, and projections about our industry and our company. We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we have included in Root's Form 10-K for the year ended Dec. 31, 2025, and other SEC filings, cautionary language identifying important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements. Copies of Root's Form 10-K and other SEC filings are available on the SEC's website, Root's website at ir.joinroot.com/investor-relations, or by contacting Root's Investor Relations office.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Root (NASDAQ: ROOT) announce about Florida auto insurance rates on August 27, 2026?

Root announced a 15% average reduction in base auto insurance rates for Florida customers. According to Root, the change applies to more than 52,000 policyholders in the state, with nearly all indicated to see lower premiums as the new rates take effect.

How much will Root policyholders in Florida save from the 15% rate cut?

Root expects eligible Florida customers to save about $400 per year on average. According to Root, this represents approximately $21 million in annualized savings across its Florida book, as nearly all existing policyholders are indicated to benefit from the reduced premiums.

Why is Root reducing auto insurance premiums in Florida by 15%?

Root attributes the 15% rate reduction to Florida insurance reforms that lowered litigation-related costs. According to Root, the reforms enacted in 2022 and 2023 improved market stability and claims cost predictability, allowing more accurate pricing and the ability to pass savings on to consumers.

How many Florida customers are impacted by Root’s new lower auto rates?

Root reports serving more than 52,000 auto insurance policyholders in Florida since entering the market in 2022. According to Root, nearly all of these customers are indicated to see lower premiums as a result of the newly approved 15% base rate reduction.

What role did Florida’s legal reforms play in Root’s 15% rate reduction?

Florida’s 2022 and 2023 insurance reforms reduced litigation-related costs, according to Root. The company states these changes created a more stable market and enabled insurers to better project claims expenses, opening opportunities to lower auto insurance rates for drivers.

How does Root’s technology and pricing approach relate to the Florida rate cut (ROOT)?

Root links the rate cut to its focus on accurate, data-driven risk pricing. According to Root, combining Florida’s cost-reducing reforms with its data science, disciplined underwriting, and safe-driving focus allows it to translate lower costs into more competitive premiums for customers.