Tesla Insurance continues to expand into new markets in the US. Now the manufacturer is starting to offer its services in Nevada. Thus, to date, Tesla Insurance has launched in nine US states.
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 nine US states such as California, Arizona, Texas, Illinois, Ohio, Oregon, Virginia, Colorado, and Nevada. 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%.
The safety rating is available in Arizona, Illinois, Ohio, Texas, Oregon, Virginia, Colorado, and Nevada. California regulations do not yet allow this. Tesla CEO Elon Musk said in January 2022, during its earnings call, that the company is “pushing very hard for California to change the rules to allow informatics, which basically means that you’re as safe as you’re driving is measured.”
Meanwhile, Tesla customers express great satisfaction with their monthly payments with Tesla Insurance, which in some cases are 60% lower than they paid with previous insurers. With real-time data, Tesla is trying to do something good for its customers, save people money, and make roads safer, according to Tesla CFO Zachary Kirkhorn.
Musk also explained that real-time data provides feedback to Tesla. This is how the company sees if there is an accident, whether it is large or small, and what are its causes. This allows them to think about how they can change the design of the car or software to minimize the likelihood of a particular accident. Musk said:
“Most accidents are minor, but how do you have those accidents occur less frequently? And how do we make the repair associated with that accident super-fast? Like, aspirationally, it would be a same-day repair of a collision, which is night and day difference compared to sometimes having to wait for a month while insurance claims are settled and figured out – because Tesla is also doing collision repair.”
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