Tesla Eases the Hefty Price Tag Sting, With Cheaper OEM Insurance

Those Tesla electric coupes look fantastic don’t they? Bit expensive of course, at just over £37,000 in the UK, but the great thing about electric vehicles is that you get to travel around with a halo almost as potent as the one being worn by St Greta. Zero exhaust emissions means no London ULEZ charge, probably no tolls to pay when they arrive in other UK cities and a plethora of free – for now – charging points springing up.

The insurance looks set to get cheaper too, as Tesla announce their own company-backed owner scheme in the USA;

Tesla Insurance is a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30% – they say on the Tesla website. Tesla Insurance offers comprehensive coverage and claims management to support our customers in California, and it will expand to additional U.S. states in the future.

Tesla owners in California can purchase a policy in as little as one minute. For new vehicle orders, customers can request a quote prior to delivery once a VIN has been assigned to their Tesla Account. In the UK, Tesla owners can ask for a quote via Direct Line, the official partner on Tesla insurance – more here.

tesla direct line driverless

Insurance Edge Comment:

The great logistical saving with a manufacturer backed insurance scheme is the huge savings on car repair, or replacement, of damaged vehicles when things go wrong.  Tesla may need to outsource the actual claims handling, but obviously there will be no spares shortages from the factory, official recalls can all be documented to every Tesla insured customer as well. Plus, Tesla AI software can probably sift the low cost repairs from the total write-offs, perhaps using a third party damage assessor service like We Go Look – another like in the FNOL chain that offers a big potential saving.

It seems like great business sense to us at IE mag, especially with a bespoke car like the Tesla, which isn’t mainstream and probably won’t attract owners keen to buy written-off vehicles and get them patched up using parts from ebay or Gumtree. #Winning 

Meanwhile, here is comment from Ian Sweeney, GM of Mobility at Trov, who provide insurance for passengers of Waymo’s autonomous vehicles.

“Tesla has taken advantage of a great opportunity facing the mobility and insurance industries – the ability to leverage data and features of today’s cutting edge mobility technology to inform and reduce the cost of insurance. We’ve been partnered for several years with brands like Waymo and Free2Move (Groupe PSA’s car-sharing service) to offer insurance on their autonomous and fleet vehicles and our technology allows us to adjust insurance premiums based on real-time data associated with each vehicle’s current risk state.

“Case in point: Free2Move is already seeing 30% savings over traditional insurance costs. 

“Tesla can quantify the risk more precisely to offer lower prices by leveraging the information and features available to them as the manufacturer of the vehicles. Whether or not they should underwrite their insurance remains to be seen. Regardless, this is just the first such move you’ll see in the industry towards leveraging technology and environmental data to drive efficiencies and cost-savings. The role of protection is evolving along with autonomous mobility, and we will see the insurance industry change as a result. Those who aren’t leveraging data, and the modern technology insurtechs can provide will get left behind.”

About InsuranceEdgeEditor (1873 Articles)
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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