Tesla is trying to shake up the auto industry once again. Ever the innovators, it seems they won’t be content until they have revolutionized every component of the auto experience, from car buying to car ownership, and their next step in this innovation seems to be here with the roll-out of in-house Tesla insurance.
In-line with the convenience of the online car buying experience, purchasing insurance for your Tesla is supposed to now be just as easy, with claims that you can purchase your policy directly from the website in less than one minute.
Perhaps the biggest selling point of this new endeavor is the price difference between Tesla insurance and the rest of the industry. The company claims that they can “leverage the advanced technology, safety, and serviceability of our cars” to pass on savings to their customers. This is soothing a major pain point that many insurance companies have, which is a lack of knowledge of new safety technology that prevents them from using data to decrease rates for cars that have driver assistance technologies
Tesla claims that these insights will allow them to offer rates 20–30% lower than the market average for coverage. However, the company is known to exaggerate, i.e. do the cars really have full self-driving capabilities, so consumers are considering this claim with caution.
The insurance will at first only be available to Tesla owners in the state of California, but as of now the plan is to expand to the other states soon.
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Hannah Michelle Lambert is the Social Media + Events Coordinator at Worthix, as well as the host of the monthly CX News Recap segment. She is a graduate of the University of Michigan.