Tesla expands into the insurance world

Tesla expands into the insurance world

September 20, 2016
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Tesla Motors’ self-driving, electric cars are a huge hit to not just the automobile industry, but to the insurance industry as well. According to data from the National Highway Traffic Safety Administration, car accidents caused by humans represent 90% of all accidents in the U.S. Self-driving cars can help eliminate them, saving millions of dollars in repair costs each year. Right now, it’s hard to say what this means for the auto insurance industry, but it sure doesn’t look good.

As if all these changes weren’t enough, Tesla has additional plans to make the lives of insurance companies even harder. According to Electrek, the automotive and energy storage company is also looking to enter the world of auto insurance itself.

Tesla’s new program is called InsureMyTesla. It will offer custom insurance plans for the company’s vehicles. Bigger insurers, partnering with Tesla, will underwrite these plans. The Palo Alto-based company has already signed deals with AXA General Insurance and QBE Insurance and is launching the program in Hong Kong and Australia.

InsureMyTesla offers:

  • Protection extends to Wall Connector and charging at public chargers;
  • The coverage extends to everyone behind the wheel of a covered Model S;
  • No depreciation exposure with replacement for up to two years on total loss and theft;
  • Mobility Service to keep you in a Tesla if your Model S is in for repair;
  • Extensive glass coverage which includes windows, mirrors, panoramic roof, head and tail lamps, and windscreen.

In Australia, Tesla has offered its customers plans with prices starting at $900 per year, according to Electrek.

In recent months, many drivers complained that insurers weren’t listing the trim levels on the Model S correctly, which led to people overpaying for their insurance. Tesla’s new plan will definitely solve this problem.

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