Tesla is launching its insurance product in Arizona and Ohio, as part of ongoing expansion. The insurance rate for car owners there will be calculated using real-time driving behavior.
Tesla is launching its branded insurance in Arizona and Ohio, the next states in the U.S. on its way to more global expansion. The company understands and knows its vehicles, technology, safety, and repair costs like no one else, so it does not have the costs that traditional insurance companies have. The rate that clients will pay for insurance directly depends on this. Tesla Insurance provides a convenient monthly payment and reflects Tesla's active safety and advanced driver assistance features which come standard on all new Tesla vehicles.
Tesla Insurance in Arizona and Ohio is using real-time driving behavior, the same as in Texas and Illinois. 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 they 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.