Brand-specific car insurance, such as
Tesla car insurance, is still a relatively new concept. Most drivers are used to the more traditional model of buying a car through one company and insuring it with another. In the coming years, we might start to see more car manufacturers offer their own brand of insurance.
Automakers are looking to leverage their troves of data to sell customers a policy that fits like a glove. The companies claim to have a better understanding of the driving habits and tendencies of their customers based on data collected from the cars. Brands believe they’re better-positioned to assess risk and sell a policy that
saves drivers money.
Tesla insurance has been available in California for a few years
The Hill, Tesla has been selling car insurance in California since August 2019. The brand provides coverage via State National Insurance and Tesla owners in California can purchase a policy from the company itself.
Tesla vehicles have strong safety ratings and lower environmental impact, but they’re expensive to insure because of their high repair costs. Tesla insurance is meant to help make coverage more affordable for the brand’s models.
In October, Tesla is planning to offer car insurance in Texas that’s "based on actual driving history," as reported by The Hill.
Texas appears to be next in line for Tesla insurance
According to The Hill, Tesla car insurance may soon be available in the Lone Star State. Tesla CEO Elon Musk got a lot of attention from news sites like
BBCwhen he moved from Silicon Valley to Texas in December 2020. The Hill said that Texas is now Tesla’s base of operations, and the company has started several initiatives for customers in this state.
This rollout will help strengthen Tesla’s customer base in its relocated home. Tesla is also looking into providing its customers direct access to electricity and eliminating the regulatory middleman. Tesla drivers in Texas may soon have their auto needs entirely met by the company itself.
The company is also waiting for approval to sell car insurance in Illinois.
What are the benefits of getting car insurance through Tesla?
Teslaclaims that its insurance can offer cost savings of up to 30% compared to third-party providers.
The brand factors in the benefits of the
safety and driver assistancefeatures available in their cars, which other car insurance companies might not weigh as heavily when determining your premiums.
Tesla insurance rates are expected to be more tailored to the driver. The Hill reported that a data leak from the Tesla app showed that insurance rates may be adjusted based on time spent using Autopilot, speed, miles driven, and other related statistics. Traditional insurance firms typically make assumptions about driver risk based on factors like age, gender, and even credit scores in some states.
Whether or not you’re a Tesla owner, if you’re shopping for car insurance,
Jerrycan help you easily compare quotes. The app finds competitive rates from top providers in less than a minute. Jerry gathers your information from your past insurer, so you're not responsible for any long forms or phone calls. Basically, you get all of the savings and coverage, with none of the hassle.