Elon Musk’s Tesla shed some new light on the importance of electric cars and self-driving vehicles in the past few years. Now, more than ever, Tesla is being recognized due to the innovative products it brings to the market; the latest addition to its offerings: car insurance.
Tesla began offering car insurance back in September yet the discussions regarding this new feature haven’t dissipated yet. Although the said car insurance is strictly for Tesla vehicles (in some parts of the US), this new offering may have a huge impact on drivers in the long run.
According to the company, the insurance coverage will be expanded over time; in the meantime, they want to check how the business would hold up, particularly for the Tesla Cybertruck.
Tesla Insurance claims to offer premiums that are up to 30% lower than other auto insurers. However, Tesla does not offer insurance to everyone (even to those who could request a quote). Some experts believe that Tesla may be choosing less risky cases and referring complex ones to insurers who can handle them.
Many a driver asked: “why is Tesla selling insurance?” The main reason for this is Tesla’s access to real-time data from drivers’ behavior and the performance of their vehicles. With such data, the company can accurately determine the risk of accidents and repair costs.
Additionally, it also makes sense for Tesla to sell insurance because some insurers charge high premiums for Tesla vehicles. As such, by including insurance into its offer, Tesla can make its products more accessible and affordable.