Root Extends Carvana Embedded Insurance Deal Through 2028

Zacks Investment Research·22 Sep 2026·

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2▲1 ▼0Impact / 5

M&A · Partnership Industry Insurance

ROOT ▲

CVNA ±

Summary · why it matters

Root, Inc. extended its exclusive embedded insurance partnership with Carvana through at least August 2028, keeping its products integrated into Carvana's vehicle-purchase experience and preserving access to the used-car platform's national buyer base at the point of sale. The extension supports Root's push beyond Direct acquisition as it broadens partnerships and independent-agent distribution; those channels represented about 51% of new writings in the second quarter of 2026, up from about 44% a year earlier, after Root reduced Direct performance marketing as competitors increased spending and lowered prices. The embedded model lets customers purchase and bind coverage within a partner experience without visiting a Root website, which could support policy growth and more efficient customer acquisition if the economics meet Root's target returns. The deal secures distribution access but does not guarantee premium growth, since results depend on Carvana's retail unit volumes and attachment rates; policies in force rose 6.2% year over year to 483,921 at the end of the second quarter, but management expects year-end 2026 policies in force to be relatively flat if current competition persists. Root currently carries a Zacks Rank #3 (Hold), while its Value, Growth, Momentum and VGM scores are all A.

Root Inc ▲

Carvana Co ±

Impact on assets 6

Financials▲ · 4 stocks

Root Inc

ROOT

▲ PositiveDemandrelevance

Root extended its exclusive embedded insurance partnership with Carvana through 2028, preserving point-of-sale distribution access to Carvana's national buyer base.