Root Inc. and Hyundai Capital America Join Forces to Reshape Auto Insurance Landscape

Root, Inc. (NASDAQ: ROOT) and Hyundai Capital America announced a strategic collaborative initiative designed to transform how vehicle owners access and experience insurance coverage. The partnership, formalized in April 2025, represents a convergence of expertise between a fintech-driven insurance innovator and one of America’s largest automotive finance operators.

The Collaboration Unfolded

Based in Columbus, Ohio, Root brings significant technological capabilities to the table. The company has assembled over 30 billion miles of driving data through its mobile-first platform, which has been downloaded more than 15 million times. This data foundation enables Root to create personalized insurance models that reflect actual driving patterns rather than relying solely on traditional risk metrics.

Hyundai Capital America (HCA), headquartered in Orange County, California, operates as a financing backbone for three major automotive brands: Hyundai Motor America, Genesis Motor America, and Kia America. Over 35 years of operations, HCA has maintained relationships with approximately 2.7 million customers and 1,800 dealerships across the United States. The company operates customer service infrastructure across multiple locations including Atlanta, Georgia and Dallas, Texas.

What the Partnership Aims to Achieve

The two organizations have identified complementary strengths. Hyundai Capital America brings deep expertise in the auto finance sector and customer-centric innovation, while Root contributes advanced mobile technology and data science capabilities. Together, they intend to develop insurance offerings that deliver competitive, data-informed rates tailored to individual driver profiles.

According to Alex Timm, Founder and CEO at Root, Inc., this collaboration expands the company’s distribution channels and enables creation of specialized products for HCA’s customer base. The partnership also represents a diversification opportunity for Root’s insurance portfolio across multiple customer segments.

Marcelo Brutti, President and CEO of Hyundai Capital America, emphasized that the initiative aligns with HCA’s strategic focus on customer-centric innovation and technology integration. The goal extends beyond insurance provision—it encompasses reimagining the entire vehicle ownership journey with personalized, tech-enabled solutions.

Market Implications

The partnership reflects broader industry trends toward integrated financial services within the automotive ecosystem. By combining HCA’s established dealership networks and customer financing relationships with Root’s behavioral data and algorithmic underwriting, the collaboration positions both companies to address evolving consumer expectations around transparency, personalization, and seamless digital experiences.

The insurance solutions emerging from this partnership are expected to offer HCA’s drivers more connected experiences that reflect their specific driving profiles and vehicle ownership patterns. This approach contrasts with traditional insurance models that rely on demographic categories and static risk assessment.

The Companies Behind the Partnership

Root, Inc. operates as a technology-first insurance provider leveraging data science to democratize access to personalized coverage. Founded in 2015, the company has established itself as an innovator in usage-based insurance models. The Root app ecosystem has become instrumental in collecting granular driving behavior data, which informs underwriting decisions and enables more equitable pricing structures.

Hyundai Capital America functions as the financial services arm supporting Hyundai Motor America, Genesis Motor America, and Kia America operations. Operating under the Hyundai Motor Finance®, Genesis Finance®, and Kia Finance America® brand umbrellas, HCA provides installment loans, leasing, financing, dealer inventory funding, and capital solutions across North American markets.

Forward-Looking Considerations

Both organizations acknowledge that the partnership’s success depends on operational execution, customer acquisition efficiency, customer retention capabilities, and the realization of anticipated synergies. Market conditions, regulatory environment shifts, and consumer adoption patterns will influence outcomes. Root and Hyundai Capital America share the conviction that leveraging combined expertise in technology, data analytics, and customer-focused strategy positions them to advance industry standards in automotive insurance accessibility and personalization.