Tesla announced the expansion of its new insurance business to Arizona and Ohio – making it now available in five states.
Tesla Insurance
Tesla had already introduced its own insurance product in California, but it didn’t utilize real-time driving data and Tesla’s safety score, which had been its original goal.
Before expanding its insurance product to other markets, the company wanted to build up its safety score system, which utilizes driving data collected in real-time from Tesla vehicles to determine if you are a “good driver” based on things like the number of “Forward Collision Warnings” you get, the amount of hard braking you do, aggressive turning, unsafe following distance, and if you get forced Autopilot disengagements.
In October, Tesla finally launched its new insurance product based on the safety score in Texas.
The automaker says that it expects those deemed “average” drivers based on their safety score should save 20% to 40% on their premium compared to competitors, and those with the safest scores could save between 30% to 60%.
In a review of some quotes compared the existing premiums for Tesla drivers, it was hit or miss on whether Tesla’s product was cheaper or not. There seems to be a bigger difference for those who already had a high premium based on age and gender, which Tesla insists it is not using in its own premium calculations, unlike other insurance companies.
Also, when first quoting and starting a policy, Tesla assumes a safety score of 90. The monthly premium price can quickly go down if you improve this score.
Tesla released an example that shows how the premium can change month to month depending on your score:
| Month | Safety Score From Trips* |
Safety Score for Rating |
Monthly Premium |
|---|---|---|---|
| 1 | 95 | 90 | $121.00 |
| 2 | 88 | 90 | $121.00 |
| 3 | 92 | 95 | $97.00 |
| 4 | 98 | 88 | $130.00 |
| 5 | 96 | 92 | $111.00 |
| 6 | 93 | 98 | $83.00 |
In December, the company expanded the insurance product to Illinois.
Tesla Insurance expands to Arizona and Ohio
Today, Tesla decided to expand its insurance offering to Arizona and Ohio, according to an update on its website:
“Get competitive rates in Arizona, California, Illinois, Ohio and Texas in as little as one minute. Insurance based on real-time driving behavior now available in Arizona, Illinois, Ohio and Texas.”
That now makes five states where Tesla Insurance is available, but only the last four have the product based on “real-time driving behavior.”
In October, CEO Elon Musk said that Tesla is aiming to be “in most states” by the end of 2022. The regulatory landscape for insurance is complex and varies state by state. Therefore, Tesla has a lot of work to do to launch in any new state, which slows the rollout of the new product.
California is expected to get the “real-time driving behavior” in the future, but it needs to be approved by regulators. In the meantime, Tesla still offers its regular insurance product in the state.
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Author: Fred Lambert
Source: Electrek
