Elon Musk has always claimed that his Tesla cars are much safer than the average internal combustion engine vehicle. Today, Tesla has finally put their money where their mouth is -at least in California- with the announcement of Tesla Insurance.
Tesla Insurance is an insurance product being sold directly by the Tesla company, that promises to offer insurance as much as 30% cheaper than what is offered by competing insurance providers.
Tesla claims this is due to its “active safety and advanced driver assistance features” that makes their vehicle safer and cheaper to insure.
Tesla’s insurance company will be run by Alex Tsetsenekos, a former exec at Liberty Mutual, Tesla’s partner for InsureMyTesla in the US.
The product is currently only available in California, but the company promises to expand it nationwide in the future. The main concern being raised by critics is whether the heavily indebted company will actually be around long enough to pay out claims, should the worst happen.
A secondary concern is whether Tesla will use its expertise in accessing and interpreting recordings made by the Tesla car computer to deny claims by drivers. The company is rather famous for arguing with Tesla owners who lay the blame for accidents at the foot of the vehicle, and then backing these up with vehicle logs.
Tesla owners in California can get a quote for Tesla insurance from their website here.
Read the company’s blog post below:
Starting today, we’re launching Tesla Insurance, a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30%. Tesla Insurance offers comprehensive coverage and claims management to support our customers in California, and it will expand to additional U.S. states in the future.
Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost. This pricing reflects the benefits of Tesla’s active safety and advanced driver assistance features that come standard on all new Tesla vehicles.
Tesla owners in California can purchase a policy in as little as one minute via tesla.com/insurance. For new vehicle orders, customers can request a quote prior to delivery once a VIN has been assigned to their Tesla Account.
Tesla Insurance offers a convenient monthly payment with no hidden fees or charges. Customers may cancel or change their Tesla Insurance policy at any time.