Automobiles

Root raises $350 million to drive auto insurance change

illustration of road made out of a dollar sign
Illustration: Aïda Amer/Axios

Root Insurance, a tech-enabled auto insurance upstart that lives among the legacy giants in Columbus, Ohio, recently raised around $350 million at a $3.5 billion valuation, Axios has learned from multiple sources.

Why it matters: VCs are valuing Root more as a tech company than as an insurer, arguably more because of high growth rates than the actual tech component. We've seen this elsewhere in the insurance sector (e.g., Lemonade), and in all sorts of other consumer-facing areas (eyeglasses, razors, mattresses, etc.). The the jury remains out on the sagacity of such classifications.

Expert Voices

How the AV industry could implement and enforce safety standards

Illustration of a seat belt with a yellow road markings
Illustration: Sarah Grillo/Axios

AV companies are wrestling with how to define and set safety standards, and at a recent symposium, a possible path emerged — even if the industry hasn't reached a consensus.

The big picture: NHTSA's voluntary safety self-assessment guidance applies to AV companies — but there are no mandatory safety standards and any future standards will have to define "safe enough" and also verify safety to earn public trust.