Tesla Insurance, Tesla’s prospering insurance division, launched its real-time driver-data product in three more states in the US. Hence, it is now available in seven states in the US in total. Additionally, although it is available in California, there is no real-time driver safety data due to its regulations.
Thus, Tesla Insurance does not use real-time driving data or Tesla’s safety score in California. So, to accomplish its goal of offering safety scores, the company began to build up its system before expanding the product to other markets. The safety score system of Tesla Insurance uses driving data collected in real-time from its vehicles. Additionally, it determines if a driver is “good” based on the number of “Forward Collision Warnings” a driver gets. Also, it considers the amount of hard braking and aggressive turning a Tesla driver does in the scoring system. Plus, it also considers the unsafe following distance and forced Autopilot disengagements a driver gets for the score.
Tesla Insurance launched its new product based on safety scores in Texas last October. Additionally, the company expects drivers rated “average” by the safety score to save 20% to 40% on their premium. And, drivers with the safest scores could save 30% to 60% on their premium compared to competitors. However, there is a big difference for customers already possessing a high premium according to their age and gender. But, Tesla persists it is not using that in its premium calculations like other insurance companies. In addition, Tesla always assumes a safety score of 90 when first quoting and starting a policy. Hence, the monthly premium is likely to reduce quickly if a driver improves this score.
Which states have Tesla Insurance products?
Tesla Insurance expanded its product to Illinois in December 2021 and Arizona and Ohio in January 2022. On April 18, the company updated its website and added three more states offering real-time-data insurance products. Thus, the latest addition brings the tally up to seven states where Tesla Insurance, based on real-time driving data, is available –
- Arizona
- Colorado
- Illinois
- Ohio
- Oregon
- Texas
- Virginia
However, the company has still been unable to release its full product in California. But, the customers in California can use the Driver Safety Score for “educational purposes.” Additionally, since releasing its insurance product, Tesla has integrated everything into its mobile app. Therefore, customers can order the insurance and utilize the safety score for paying and managing claims right from the mobile app.
Furthermore, CEO Elon Musk revealed that Tesla Insurance would be available in “in most states” by 2022 last October. Plus, every US state has different sets of rules and regulations regarding insurance. But despite that, the company seems to have gained steady and gradual success. The proof is how it expanded its product in six new states over five months.
