Root, Inc., the parent of Root Insurance Company, and Hyundai Capital America announced a strategic embedded insurance partnership this week.

The two companies said they will deliver innovative solutions and enhanced experiences to HCA customers through the collaboration, which also aims to “drive advancements in the auto finance and insurance industries” by capitalizing on each partner’s respective strengths.

“HCA’s leadership in auto finance, combined with Root’s expertise in mobile technology and customer-focused insurance models, seeks to address evolving industry needs and set new benchmarks for customer satisfaction,” the companies said in a joint media statement. The statement also referenced the delivery of tailored products, with specifying exactly how insurance will be personalized for HCA customers.

The collaboration is also expected to deliver insurance solutions that offer data-driven, competitive rates to HCA customers.

Highlighting common characteristics of the partners—a “passion for innovation and customer-first solutions”–Alex Timm, Root’s founder and CEO stated, “This partnership allows us to build something unique for HCA drivers, while further diversifying and expanding our insurance offerings across multiple distribution channels.”

Timm has regularly referred to the partnership channel as a central building block of the InsurTech’s business during industry gatherings and earnings conference calls, highlighting Root’s first embedded insurance partnership with Carvana in 2021. The company has other embedded partnerships but Root executives have said that other partners preferred not to have their names shared publicly.

Root was founded as a telematics-based auto insurance company, with the central vision of creating a technology-driven model for insurance that allowed for fair and accurate pricing based on driving behavior. The InsurTech, however, did not use telematics to price new customers who went through a three-click process of adding Root auto insurance to their purchases of used cars from Carvana, Timm said at a conference in 2023.

“Although we’re always going to encourage customers to opt into telematics, we also believe that we can underwrite profitable levels, as we’ve shown now through Carvana, without telematics. But it’s certainly something that we look to encourage and it’s certainly something we continue to want to double down on,” he said at the time.

This week’s statement about the partnership with HCA does not indicate the extent to which telematics figures into the auto pricing process for the auto finance company’s customers.

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