Tesla is preparing to expand its insurance business internationally, starting with insurance products in the UK.
The automaker initially introduced its own insurance product in California, but it didn’t use real-time driving data or Tesla’s safety score, which had been the original goal.
Before expanding its insurance product to other markets, Tesla wanted to develop its Safety Score system, which uses real-time driving data collected from Tesla vehicles to determine if you are a “good driver.” depending on elements such as the number of “Forward Collisions”. Warnings” you get, the amount of hard braking you do, aggressive turns, dangerous following distance, and whether you get forced autopilot disengages.
In October 2021, Tesla finally launched its new insurance product based on Texas safety score.
The automaker says it expects drivers deemed “average” based on their safety score to save 20% to 40% on their premium compared to competitors, and those with the highest scores could save between 30% and 60%.
In a review of some quotes comparing existing bonuses for Tesla drivers, it was hit or miss whether Tesla’s product was cheaper or not. There seems to be a bigger difference for those who already had a high premium based on age and gender, which Tesla insists it doesn’t use in its own premium calculations, unlike some others. insurance companies.
Also, when first quoting and starting a policy, Tesla assumes a safety score of 90. The monthly premium price can quickly drop if you improve on this score.
Tesla has posted an example that shows how the premium can change from month to month based on your score:
| Month | Security Note Of travel* |
Security Note for the classification |
monthly premium |
|---|---|---|---|
| 1 | 95 | 90 | $121.00 |
| 2 | 88 | 90 | $121.00 |
| 3 | 92 | 95 | $97.00 |
| 4 | 98 | 88 | $130.00 |
| 5 | 96 | 92 | $111.00 |
| 6 | 93 | 98 | $83.00 |
Since the product’s release, Tesla has integrated everything into its mobile app, from ordering insurance and using Safety Score to paying and managing claims.
The company extended the insurance product to Illinois in December and then Arizona and Ohio in January.
In April, Tesla launched insurance based on real-time driver data in Colorado, Oregon and Virginia.
In June, the automaker extended the product to Nevadaand in July we saw Utah and Maryland added to list.
The rollout isn’t happening as quickly as Tesla had expected, as CEO Elon Musk said he believes Tesla Insurance will be in most states by the end of last year.
But now we hear that Tesla is preparing to expand its insurance business internationally, starting with the UK.
The UK Insurance Post (via AM City) reports that Tesla has initiated the process and is hiring a lawyer to work at its “full-stack in house in insurer” based at its London headquarters.
The UK has quickly become one of Tesla’s biggest markets as new car buyers increasingly turn to electric vehicles.
Despite a higher list price, electric vehicles can result in a much lower cost of ownership, but Tesla has often been subject to higher insurance rates from established companies.
By offering its own product, Tesla hopes to reduce the cost of insurance for its owners and, therefore, reduce the overall cost of ownership.
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