Photo: Tesla
Tesla is launching its data insurance product in a third state in U.S. in collaboration with another underwriting partner, Midvale Indemnity Co. The next state where Tesla is likely to offer InsureMyTesla will be Illinois.
Tesla Insurance Services Inc. laid the foundation to begin providing insurance coverage to Tesla owners in Illinois in accordance with a series of rate, rule, and form filings obtained by S&P Global Market Intelligence, through policies to be underwritten by Midvale Indemnity Co., a subsidiary of American Family Mutual Insurance Co.S.I.
The Illinois program described in the documents is similar to the policy that Tesla is offering in Texas through the Redpoint County Mutual Insurance Co. It includes driving data such as speed, mileage, accelerations, and time of day collected through Tesla's advanced driver assistance systems / Autopilot features to determine a personalized safety score. Ultimately, all the data collected helps to determine the amount of the insurance discount compared to the base rate that the vehicle is entitled to receive.
Echoing the Texas filing, an actuarial memorandum accompanying the Illinois submissions states that the product will "use the technology in vehicles to lower costs and improve the customer experience through automated underwriting, rating, and claims, including direct data feeds with customer permission, that eliminate frictional costs and inefficiencies inherent in traditional insurance processes."
The Texas and Illinois filings include rate symbol adjustments to reflect Tesla's agreement to provide repair parts to accredited body shops at a discounted rate. The factors assume that repair costs will be 15% below those assumed in the Insurance Services Office's symbols for the same Tesla models.
While California is officially listed on the company's website as the only site for InsureMyTesla, Tesla has announced in its 10-K form that it plans to expand access to its insurance product as part of an ongoing effort to reduce the total cost of ownership for its clients.
H/T @DriveTeslaca/Twitter
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Article edited by @SmokeyShorts, you can follow him on Twitter
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
