Tesla Insurance Launches in Illinois Using Real-Time Driving Behavior

Tesla is launching its insurance product in Illinois, which has become a third state in the U.S. The insurance rate for car owners will be calculated here using real-time driving behavior.

Tesla launches its branded Insurance in Illinois, which was first spotted by @SawyerMerritt/Twitter. The product was launched in collaboration with another underwriting partner, Midvale Indemnity Co. The first hints about the further deployment of Tesla's new service in the state became known back in March 2021.

BREAKING: Tesla insurance has launched in Illinois, making it the third state (behind California and Texas) to get the new real-time driving behavior based insurance.

1/2https://t.co/uh1BX4Jc94

— Sawyer Merritt (@SawyerMerritt) December 17, 2021

Tesla's website states that Insurance in Illinois is using real-time driving behavior, the same as in Texas. This means that the monthly insurance rate will be calculated taking into account the Safety Score with which each individual driver drives. Thus, the higher the Safety Score, the less the owner will pay on a monthly basis. This will encourage more drivers to drive as carefully as possible, because 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 vehicle. The company explains that the daily Safety Score is not impacted by the number of miles or hours drive. 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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Article edited by @SmokeyShorts, you can follow him on Twitter

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