Toronto, Ontario — Sept. 3, 2019 — Tesla will be moving forward in an effort to deliver a first-party insurance policy to Tesla owners. Last week on the company’s website, a tease by Elon Musk suddenly became reality when an announcement dropped that showcased the new policy for Californians, simply titled ‘Tesla Insurance.’
From August 28th onwards, Model S, Model X and Roadster owners can purchase a policy through the company’s site “in less than a minute,” according to Tesla. While driving record, among other factors, will still be taken into account, the manufacturer states that the policy will save owners between 20 to 30 percent.
While it is rare for an auto company to offer insurance policies directly through themselves, the idea of a manufacturer teaming up with an insurance company to offer an all-in-one deal is not unheard of — in fact, it is becoming more popular. BWM, Volkswagen and PSA all have recent partnerships with insurers in certain regions.
Though it may not be the first OEM to attempt taking control of its own auto insurance policies, its foray into the repair management sphere should be noteworthy to collision repairers. As an OEM, Tesla has pursued a certification strategy meant to ensure all repairs are performed as instructed by Tesla. As an insurer, Tesla will face a different pressure–to encourage affordable repairs.
As a manufacturer, however, Tesla may be able to save costs that other insurers cannot. At the moment, annual premiums for Tesla’s top-tier vehicles can cost drivers $16,000 per annum. Teslas are typically so expensive to repair due to their aluminum assembly, with some reports stating that a fender bender could cost up to five figures.
Tesla claims that due to its access to individual car data, it would be able to accurately curtail the insurance price compared to third-party quotes.
“By pricing policies to reflect Tesla’s active safety and advanced driver assistance features, which come standard on all new Tesla vehicles, Tesla Insurance is able to offer reduced insurance costs for many eligible owners,” wrote Tesla on its website.
Tesla Insurance is available in California and is planned to expand in the future.