Tesla to Offer Its Own 'More Compelling' Insurance Product
Tesla owners face high insurance premiums each year, so Elon Musk decided to do something about it.
Buying a new car is just the start of the costs you'll incur, with insurance being another potentially big layout depending on your driving history and experience. But if you're buying a Tesla, Elon Musk is looking to offer you a "much more compelling" insurance option.
As TechCrunch reports, on a Q1 earnings call yesterday, Musk confirmed that Tesla intends to launch its own insurance product at some point in May. The claim of it being more compelling was not backed up with detail, but the suggestion is that it relates to the amount of information Tesla has access to regarding how people drive its vehicles.
Some insurers already offer lower premiums to customers if they allow their driving to be tracked. Tesla's vehicles are packed with safety features and the increasingly important Autopilot. Combine that with detailed information collected on how a vehicle is driven and Tesla knows how well (or badly) each vehicle is driven.
As Electrek points out, insurers are known for charging very high premiums to Tesla owners, which in part is why Tesla launched the InsureMyTesla program a couple of years ago. It saw Tesla working with third-party insurers to offer lower premiums, but clearly that isn't good enough for Musk.