Root’s Plan to Disrupt Auto Insurance Needs More Time to Grow

Insurance technology companies aim to give you a discount on policy rates. But their shares come at a premium.

Following digital home insurer Lemonade’s hotly traded initial public offering in July, Root began trading on Wednesday. Root is taking on a behemoth of the insurance market: auto policies. At the core of Root’s proposition is using telematics, or technology that uses smartphone data to track a driver’s habits and price their risk accordingly. Customers download the app, drive around with it for a test period and…

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