Tesla just launched another reason why people should check out their innovative cars. The California-based automaker just launched its very own insurance program, called the TEsla insurance.
On Wednesday, the company launched a no-brainer product - its own insurance program. Based on the blog where the product is announced, this makes sense because the company certainly "knows its vehicles best."
Based on information from the company's website, Tesla owners can get as high as 30% rate reductions if they get a Tesla insurance as opposed to a third-party insurance product. The reductions are based on the "pricing policies to reflect Tesla's active safety and advanced driver assistance features," according to the FAQ.
Similar to other car insurance products, rates on Tesla insurance will be determined through a combination of factors, such as driving history, and many more others. However, it is noted that rates will not be based on driving data taken from the owners;' vehicles. Tesla also said that multiple-Tesla owners are eligible for a discount.
One reason why Tesla insurance is good for Model S, Model X, and Model 3 owners to have is that it offers a monthly payment plan that owners can change or cancel anytime. Those who are just ordering their cars could already request a quote before the cars are ordered, as long as they have a VIN assigned to a Tesla account.
Tesla knowing its cars better and then providing insurance for it, is really a smart move. Many insurance companies in the past did admit that one problem they have is that they usually have insufficient data to validate automaker claims. Moreover, car owners will also see that it is wise to patronize the discounts as steep as 30 percent, given that auto insurance, in general, is already low-margin business.
On the other hand, some critics are claiming Tesla is really entering into a big risk here. It is competing with insurance companies that have been established for decades and have calculated their rates based on massive data coming from millions upon millions of vehicles. Tesla may be coming in too fresh on the industry, and its rates might be too good to be true, especially if what they are banking on is data from their own cars and client behaviors.
Based on the blog post, the service is currently available in California right now, but it will also be offered in other US states soon.
