Tesla is launching today its own insurance program – starting with owners in California. The automaker claims that its rates are “up to 30% cheaper” than the competition and they plan to expand to other markets.
For years now, Tesla has been increasingly more involved in building insurance products especially designed for its vehicles.
Two years ago, we published an exclusive report revealing that Tesla was working on a new car insurance program, which it started offering to its customers in Australia and Hong Kong. It has since expanded into several other markets including North America.
Last year, Tesla hired Alex Tsetsenekos, a former exec at Liberty Mutual, Tesla’s partner for InsureMyTesla in the US, and several other insurance companies, to lead what he described as a ‘Customer Centric Insurance Company’ for Tesla.
CEO Elon Musk said earlier this year that all those efforts are going to lead to Tesla launching an actual new insurance company to insure its vehicles.
It was supposed to launch in May, but it was delayed a few times. Musk said that Tesla was waiting on completing an acquisition.
Today, Tesla officially launched the product, called ‘Tesla Insurance’, starting with support for customers in California.
The automaker says that it will expand to other markets in the future.
In a blog post about launching the product, Tesla says that its rates are “as much as 30%” lower than the competition:
“Starting today, we’re launching Tesla Insurance, a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30%. Tesla Insurance offers comprehensive coverage and claims management to support our customers in California, and it will expand to additional U.S. states in the future.”
As previously announced, Tesla is using its own data based on its “active safety and advanced driver assistance features” to arrive at lower prices.
Here’s the full blog post:
“Starting today, we’re launching Tesla Insurance, a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30%. Tesla Insurance offers comprehensive coverage and claims management to support our customers in California, and it will expand to additional U.S. states in the future.
Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost. This pricing reflects the benefits of Tesla’s active safety and advanced driver assistance features that come standard on all new Tesla vehicles.
Tesla owners in California can purchase a policy in as little as one minute via tesla.com/insurance. For new vehicle orders, customers can request a quote prior to delivery once a VIN has been assigned to their Tesla Account.
Tesla Insurance offers a convenient monthly payment with no hidden fees or charges. Customers may cancel or change their Tesla Insurance policy at any time.”