Root Inc. is reducing auto insurance premiums for its Florida customers by an average of 15%.
The move will generate approximately $21 million in annualized savings for more than 52,000 policyholders. Individual drivers will see average savings of about $400.
Management attributes the reduction to legislative reforms enacted in 2022 and 2023. These reforms stabilized the market by addressing high litigation-related costs.
CEO Alex Timm stated that declining costs allow the company to price risk more accurately. Root is passing these savings directly to its consumers.