Root Insurance has filed to introduce a 10% group rate discount for Toyota Financial customers in California, adding preferential pricing to a sales partnership with the automaker’s finance business.

The proposal would give eligible customers lower base rates than Root’s standard California auto program. Root’s filing says it has entered into a sales partnership with Toyota Financial and expects customers acquired through the relationship to produce better loss results than its organic business.

The move pairs a distribution channel with a pricing advantage: Toyota Financial customers would receive a financial incentive to choose Root, while the insurer gains access to a customer segment it believes will outperform its broader book.

Root selected the initial 10% differential using Spinnaker’s California Porsche affinity program as a benchmark. The insurer says future pricing for the Toyota Financial group will be informed by the group’s own performance.

 The proposed program would use Root’s existing California coverage forms and rating plan. Its group-rating rules already identify Hyundai Capital America customers as eligible for preferential pricing; Toyota Financial would become the second listed group. Customers qualifying for multiple groups would receive the lowest applicable group rate.

The filing reports 49,571 policyholders and approximately $149.5 million in written premium for Root’s California program. It lists no overall rate impact on the existing book.

Root requested a January 15, 2027 effective date for new and renewal business, subject to regulatory approval. The filing remains pending.