–Unlike most other automakers it offers Tesla Inc (NASDAQ: TSLA) offers its own vehicle insurance for customers.
Insurance was first offered in California but has since expanded to Texas. And now it appears that residents of Illinois are the next to sign up for cheaper insurance.
Tesmanian shared information
Tesmanian shared information showing that Tesla will be working with Midvale Indemnity Co. as an underwriting partner. This is the same approach Tesla uses in both California and Texas to offer vehicle insurance. In user reviews, Tesla is able to offer lower costs compared to what customers previously used. CEO Elon Musk has said it should be about 20% less than comparable insurance for people of California.
Part of that comes from the fact that Tesla can get a lot of data out of the car if customers choose to share that information. Tesla can monitor driving data such as speed, mileage and accelerations to determine a personalized safety score. The data collected will help determine the value of the discount the driver can get.
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The application to sell insurance in Illinois states that Tesla “will use the technology in the vehicles to reduce costs and improve the customer experience through automated underwriting, rating and claims, including direct data feeds with customer permission, Eliminate the frictional costs and inefficiencies in traditional insurance processes. “
Insurance is a huge cost factor in car ownership. If Tesla can offer this option to its customers at a lower cost, it will make it easier to buy and own a car and save money for owners. And if owners use Tesla’s autopilot and self-driving systems, Tesla will notice and be able to offer further discounts, as data shows that using these systems leads to fewer accidents.
(Courtesy photo of Tesla)
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