Carvana announced that its embedded insurance partnership with Root Insurance has exceeded 200,000 policies sold through the Carvana Insurance Built with Root program, which integrates Root’s data‑driven underwriting directly into Carvana’s online car‑buying flow. The program officially launched at the end of Q1 2022 and has since expanded to 36 states.
The three‑click insurance purchase at the point of sale eliminates friction for customers, driving adoption. The 200,000‑policy count represents a 100% increase from the 100,000 policies recorded in the first year of the program, illustrating rapid growth and strong demand for a seamless ownership experience.
The partnership adds a recurring revenue stream that complements Carvana’s core vehicle sales and financing. In 2025, Carvana reported record full‑year revenue of $20.32 billion and net income of $1.895 billion, with the insurance segment contributing to the company’s diversified earnings profile.
Root, founded in 2015, has collected approximately 36 billion miles of driving data and had 341,764 policies in force as of December 31 2023. Carvana’s investment of $126 million in August 2021 gave it a 5% stake, underscoring the strategic importance of the embedded partnership for both companies.
Management comments highlight the partnership’s impact. Root CEO Alex Timm said the milestone reflects the success and momentum of the collaboration, while Carvana CEO Ernie Garcia noted that reaching 200,000 policies demonstrates the value of building for the customer with a like‑minded partner.
Market reaction to the announcement was positive, with analysts noting the milestone as a sign of growing ancillary revenue and a validation of Carvana’s digital‑first approach. The announcement coincided with a climb in Carvana’s stock on April 14, driven by the perceived strength of the insurance partnership, while earlier earnings reports had shown a miss in Adjusted EBITDA that had weighed on the stock.
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