Tesla’s in-house auto insurance launched today, with initial availability in California.
Tesla Insurance is designed to provide Tesla owners with competitive rates that take the safety and serviceability of their vehicles into account. Tesla claims that rates are “up to 20% lower” than comparable insurers, with savings in some cases that can total “as much as 30%.” Cost savings are directly attributed to the advanced safety and driver assistance features that have come standard on all new Tesla vehicles since late 2016.
Originally slated to launch in May, Tesla was waiting to complete an unspecified acquisition prior to launching Tesla Insurance.
Tesla had previously offered InsureMyTesla, which was underwritten by Liberty Mutual and offered exclusive benefits such as new car replacement and a Tesla rental fleet. Tesla Insurance is a brand new product, with benefits beyond cost savings that have yet to be outlined.
Customers in California can request an instant quote to purchase a policy on Tesla’s site. It’s only possible to request a quote on a new order once a VIN is assigned. Used buyers will need to add the car to their Tesla account before they’re able to compare savings.
Additional states in the U.S. will be added over time, with availability expected in Tesla’s most popular states. A nationwide rollout is possible, though skyrocketing insurance rates in California was the main reason for Tesla launching its own insurance program.
For all intent and purposes, we consider this to be a soft launch since Tesla isn’t marketing the inherent benefits that come with an in-house insurance product. Anecdotally, we have seen that potential savings vary with some customers finding that their current insurer already provides cheaper rates.
Over time, Tesla should be able to make Tesla Insurance an appealing option. We know the company has been exploring offering its own in-house insurance over the past few years, and in our opinion cost savings are just the beginning. In fact, we believe the launch of Tesla Insurance is a necessary step for Full Self Driving to become a reality.
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