Car market

Own Tesla Insurance Will Save Up To 60 Percent

The American manufacturer of electric vehicles can change the insurance market by offering coverage to customers based on more real-world information than insurers currently have. Customers will be able to save up to 60 percent, but only in the USA so far.

Every vehicle met on public roads must have insurance coverage that compensates for the damage caused to third parties. Insurance premiums we pay depend on certain statistical information which insurers have.

However, there is no direct correlation between how well we drive and how much we pay for car insurance, because being a good driver is one thing but just being lucky is quite another. Tesla wanted to change this and launched Tesla Insurance in California on August 28, 2019.

The manufacturer was already aware of many instances where all-risk insurance on its vehicles was prohibitive for some customers, given such factors as age or gender, and the lack of knowledge of how much it would cost to repair damaged in-car equipment.

Tesla’s insurance product, since its launch on the market, enabled a premium reduction of up to 20% compared to other insurers, with the possibility for the best drivers to reduce the premium by up to 30%, because Tesla knew which customers could decrease premiums and which ones couldn’t

Besides, the automaker knew perfectly well the cost of repairing its vehicles, had direct access to a network of authorized repair shops, and could establish more realistic data.

Starting in Texas, Tesla has begun recording the behavior of individual drivers since October 2021 in order to adjust its premiums. The manufacturer took into account five factors: head-on collisions, hard braking, sharp turns, unsafe distance to other vehicles, the disability of the self-driving system when hands are not on the steering wheel.

Tesla’s method allowed a driver to save 20% to 40% of the premium compared to a regular insurer. The drivers with the highest safety scores could save 30% to 60%, and all this even without analyzing the speed.

After the introduction of this system in Texas, Tesla launched it in Illinois, and recently in Ohio and Arizona. With the exception of California, real-time safe driving data are taken. Expect Tesla Insurance to be expanded to other countries.


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