Tesla Insurance is preparing to expand into new markets. The company is reportedly looking to offer its service in Oregon and Virginia. The documents show that the company will underwrite the policies itself through Tesla General Insurance for the first time.
Tesla, which has already disrupted a number of fields, has also entered the insurance industry in order to provide its customers with the best conditions. Due to the presence of a large number of technologies, 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 California, Arizona, Texas, Illinois, and Ohio. The company uniquely understands its vehicles, technology, safety, and repair costs, eliminating traditional insurance carriers' additional charges. Tesla Insurance provides a convenient monthly payment and reflects the company's vehicle's active safety and advanced driver assistance features, which come standard on all new Tesla vehicles.
According to insurance documents reviewed by Forbes Advisor, Tesla plans to start selling auto insurance in Oregon and Virginia. The move will further expand the manufacturer's influence in the industry and provide its customers a highly anticipated product capable of saving them hundreds of dollars. Another important feature is that in these new states, for the first time, policies will be insured by Tesla General Insurance, unlike the partner companies that have been used in other states.
Tesla Insurance uses real-time driving behavior. This means that the monthly insurance rate is calculated 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 30% to 60%.
Safety Score is available in Arizona, Illinois, Ohio, and Texas. California regulations do not yet allow this. Tesla CEO Elon Musk said in January 2022, during the 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.”
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