Tesla has founded an insurance company in Germany and will soon be able to offer branded insurance to its customers both in the country and other countries of the European Union. The company has already launched its insurance product in several US states as part of its ongoing expansion. The insurance rate for car owners will be calculated using real-time driving behavior.
Tesla is becoming an auto insurer in Germany. After the company applied for approval through the German Federal Financial Supervisory Authority (BaFin) in 2021, the head office was opened in Malta. According to EU law, the company's approval must also be recognized in all other member countries, which means that Tesla will be able to offer insurance services in many new markets.
Tesla Insurance Ltd. (branch in Germany) is entered in the commercial register and therefore has legal capacity. The headquarters is in Grünheide at Tesla Straße 1, where Giga Berlin is located. Tesla Insurance is reportedly looking to make every possible offer from auto liability and comprehensive insurance to accident insurance and legal protection.
Insurance premiums will be calculated based on driving behavior. This means that the monthly insurance rate will be calculated taking into account the Safety Score with which each individual drives. Thus, the higher the Safety Score, the less the owner will pay on a monthly basis. This will encourage safer driving, as this will directly affect how much users will spend on insurance. Tesla will constantly adjust the amount of each owner's monthly installment, depending on their Safety Score. An average driver could save between 20% to 40%, and the safest drivers could save between 30% to 60%.
Unlike any other telematics or usage-based insurance products, Tesla Insurance does not require an additional device to be in the vehicle. The company uses specific features within the vehicles to evaluate the premium for each specific car. The company explains that the daily Safety Score is not impacted by the number of miles or hours driven. Every month, Tesla combines daily Safety Scores into a 30-day, mileage-weighted average to calculate the Safety Score used to update premium for each customer.
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About the Author
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.