Tesla Ownership Could be $400/Year Cheaper With Tesla Insurance

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Tesla now provides insurance for owners in California. If they are able to deliver on 20% lower insurance then this would save about $400/year cheaper for a model 3.

Tesla already repairs its cars and has the means to provide roadside service.

Tesla has the data on damage to vehicles and accidents. This will enable them to have a detailed understanding and modeling of the financial risk they will be facing when insuring.

Tesla will also be able to control and reduce risks of accidents by improving the self-driving and driver assistance software and systems in their cars.

Tesla will also be increasing the competitive prices of Tesla car insurance for other car insurance companies. This will be another factor in ensuring a faster response in the market to any improved safety in Tesla cars.

SOURCES- Elon Musk Twitter, Tesla
Written by Brian Wang, Nextbigfuture.com

14 thoughts on “Tesla Ownership Could be $400/Year Cheaper With Tesla Insurance”

  1. hahah bye felicia lol… i think u just described a future scene in a horror film.. car ditches owner for its own safety..

  2. They can just adjust the rate for the people who have to slam on the brakes routinely or speed wildly. Everything is statistics. You can’t be certain that some bozo is going to wreck his car in 2 years. You just adjust the rate you offer him to reflect the risk. He will probably find some other company willing to give him a better rate.
    Now that I think about it. This could really backfire. Anyone who doesn’t sign with Tesla, may look very suspicious to the other insurers, because chances are they are the really bad drivers. So if you don’t get their insurance, you may have to pay a lot for insurance…or put up your own bond.

  3. All that data is not much use unless they can then decide to kick out the 10% of potential customers who, they calculate, will have a crash within the next couple of years.

    So if Tesla ends up refusing coverage for some % of applicants, for no clear stated reason, then we’ll know they are using such an approach.

  4. The HYPE, oh, the hype. It’s hyper-hype! Is there nothing, I mean nothing Musk and Tesla cannot do? Please tackle world hunger next…after you get us all cheaper insurance. I want cheaper insurance.

  6. I bet they know how much everyone is speeding and how often they need to slam on the brakes. They can even have the AI monitor your driving and identify all the sloppiness and stupid mistakes…even if it never does any driving because you did not pay to activate it.

  7. I’d be pretty pissed if my car decided it was getting too dangerous when I am putting my valuables in the car, and it hightailed it to higher ground without me.

  11. Given that you can be convicted of drunk driving just because you are standing near a car with access to the keys, I suspect it will come down to how the local legislature thinks it can best maximise the revenue and votes.

    Logic is not a major contributor to the conversation.

  12. Eventually, the cars should be able to drive away from burning buildings, go to higher ground during flood weather, and avoid, and video vandals, and thieves. There are all sorts of situations that AI could learn to avoid, all of which lower the cost of insurance.
    If the cars could be made to be truly self driving, imagine the savings to those convicted of drunk driving.
    I personally like the idea of telling police officers that, “no, I’m not the driver, and I don’t have/need a driver’s licence. The driver is is behind the glove box.”

  13. Seems like a perfect setup for Tesla. With this data they can better ascertain the causes of accidents and adjust their focus on implementing modifications and systems that will maximize the reduction of incidents, thus closing the loop and maximizing their profits and their cars prestige. It also means greater focus on making self driving idiot proof and trustworthy.

  14. Just compared GEICO and Tesla insurance for me. GEICO was cheaper than Tesla.

    Tesla was $135.33 for comparable coverage, 40% more than GEICO.

    From GEICO Model 3 12,000 miles per year $96.17 per month
    Liability
    $500,000/$500,000
    Property Damage
    $100,000/$100,000
    Uninsured Motorist Bodily Injury
    $500,000/$500,000

    Deductibles
    Collision Deductible
    $500
    Comprehensive Deductible
    $500
    Additional Coverage
    Rental remibursement $50/day,$1500 max
    Basic Roadside

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