Tesla plans to start offering auto insurance next month

By CRM staff

Toronto, Ontario — April 26, 2019 — Tesla is creating its own insurance product and it will be launched in a month.

“It will be much more compelling than anything out there,” Tesla CEO Elon Musk said during a conference call with investors and analysts on Wednesday.

It isn’t cheap to insure a Tesla vehicle and Musk is working on rates that would fit accordingly to how the driver is on the road. While claiming the Autopilot feature on a Tesla vehicle makes it twice as safe than normal driving, Musk says they have been giving detailed information to insurance companies to help with the rates. He also said the company plans on using its Autopilot data to “incorporate that information into the insurance rates.”

This sounds familiar because it’s very similar to a system that many other insurance companies offer to their clients. Insurers often offer an incentive program for their clients where they either have to download their app or install a plugin to their vehicle so the insurer can track their driving habits. If there’s no heavy braking or speeding, drivers can receive a discount off their insurance premiums. 

“We have direct knowledge of the risk profile of customers, and based on the car, and then if they want to buy a Tesla insurance, they would have to agree to not drive the car in a crazy way. Or they can, but then their insurance rates are higher.”

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