Tesla Insurance continues to expand into new markets in the US. Now the manufacturer is setting the stage to start offering its services in the state of Georgia, a filing shows.
Tesla, which has already disrupted a number of fields, has also entered the insurance industry in order to provide its customers with the best rates. Due to the presence of a large number of technologies in Tesla cars, insurance companies have always demanded relatively high premiums for their services. This prompted the manufacturer to develop a new product that, using all the same technologies, was able to offer its customers the most favorable rates.
Tesla currently offers auto insurance in 11 US states: California, Arizona, Texas, Illinois, Ohio, Oregon, Virginia, Colorado, Maryland, Utah and Nevada. In addition, the company is awaiting approval in several new states, including Florida and New Jersey. However, a new find indicates that Tesla Insurance will soon be offered in Georgia.
coverager (via Drive Tesla) obtained access to Tesla's application for insurance service filed in Georgia. This program has an estimated effective date of November 15, 2022. In addition, the application states that Tesla Insurance in Georgia will be distributed through Tesla's own digital platform InsurTech.
“The program will be distributed through the digital InsurTech platform from Tesla Insurance Services (Tesla). The purpose of the product is to 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 digital approach to purchasing insurance by the consumer will streamline and enhance user experience throughout the policy lifecycle, beginning with the quote through online bind, renewal, and in the event of a claim. The use of vehicle and consumer data, with the consumer’s affirmative consent, will allow for lower costs to acquire and service the policyholder.”
The company understands its vehicles, technology, safety, and repair costs, eliminating traditional insurance carriers' charges. Tesla Insurance provides a convenient monthly payment and reflects the company's vehicles’ active safety and advanced driver assistance features, which come standard on all new Tesla vehicles.
Tesla Insurance uses real-time driving behavior. This means that the monthly insurance rate is calculated by taking into account the Safety Score with which each individual drives. Thus, the higher the Safety Score, the less the owner pays on a monthly basis. This encourages safer driving, as this directly affects how much users have to pay for insurance. Tesla constantly adjusts the amount of each owner's monthly installment based on the Safety Score. An average driver could save between 20% to 40%, and the safest drivers could save between 20% to 60%.
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