Elon Musk promised cheaper Tesla Insurance and it's here, sorta
UPDATE: Aug. 30, 2019, 9:52 a.m. PDT The Tesla Insurance website went back up Thursday night. Tweets and posts came in about recalibrated quotes that were improved after the site first went up Wednesday. Coverage is still only available for California Tesla owners.
Many tweets noted Tesla Insurance was now offering cheaper rates compared to GEICO and other insurance plans for comparable coverage. Initially, Tesla quotes were higher than current rates for some users. Tesla had touted 20 to 30 percent lower rates with its own product.
Back in April, Tesla CEO Elon Musk announced a new product: Tesla Insurance.
Hesaidit'd be here in about a month. Fast forward a few months (it took four), and the electric car company's own insurance program is a real thing.
Tesla Insurance was revealed on Wednesday, but only for California Tesla owners. Anyone else driving around Tesla-less or outside of California has to stick with other insurance options.
Musk said during the first-quarter earnings call that Tesla Insurance would be "much more compelling compared to anything else out there." A blog post about the new product claimed 20 percent lower rates, which seems to be the main "compelling" factor.
You can get a quote on the new insurance website, so we asked a 27-year-old Model 3 owner in California what his experience was like. He was quoted $195 per month. His current insurance is $125 per month.
Online financial tool ValuePenguin looked into the Tesla insurance policy when it was first announced and found the purportedly cheaper rates would come from lower commissions, cheaper repairs at Tesla service centers, and Autopilot discounts. Autopilot is the driver assistance system with some semi-autonomous features. All Tesla vehicles with Level 2 autonomy features like auto-steering and advanced cruise control bring in 5 to 10 percent discounts.
The average car insurance cost for a Tesla is $2,450 per year, ValuePenguin found. The Model 3 has the lowest average cost at $1,913 per year. The LendingTree company looked into the newly-announced plan on Wednesday afternoon and Tesla rates weren't immediately available. Based on anecdotes, Mark Fitzpatrick, head of ValuePenguin auto insurance research, said, "Tesla Insurance quotes were significantly higher than what users were currently paying for near-identical insurance policies."
He noted that the Tesla FAQ page clearly states Tesla isn't using driver data to set prices, but instead is using driving records for discounts, "Tesla Insurance does not use nor record vehicle data, such as GPS or vehicle camera footage, when pricing insurance."
Another insurance expert from Trov online auto insurance platform, Ian Sweeney, the general manager of mobility, thinks Tesla has a real opportunity to lower costs. He wrote in an email, "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."
Tesla vehicles are usually slammed with higher rates because of the complicated tech built into the vehicle, but Tesla claims under its own policy those features are a benefit and it can "leverage" those risk factors.
The electric car insurance is expected to expand to other Tesla owners throughout the U.S. "in the future."
UPDATE: Aug. 29, 2019, 4:10 p.m. PDT Hold up -- Tesla Insurance was pulled offline Wednesday evening. The website now says, "Algorithm update in progress."
The company added in a tweet that the insurance program would be back online as soon as possible.
Tweet may have been deleted
Bugs affecting online quotes were giving less-than-competitive rates to a subset of Tesla customers, as seen on online forums and for a Tesla customer we spoke with. He was quoted a monthly rate $70 more than his current plan.
Featured Video For You
Tesla delivers 95,200 cars in Q2, breaking record
-
16 of the Most Epic Sandwiches Around the Planet向国旗敬礼 彰显浓浓爱国情闈掑矝宕傚北椋庢櫙鍖哄崕涓ユ父瑙堝尯鏀归€犲悗瀵瑰寮€鏀綺涓浗灞变笢缃慱闈掑矝喜迎二十大 争做好队员First officially approved Gen IV nuclear reactor in the US breaks ground用党的二十大精神指引人大工作发展 为推动现代化雅安建设贡献智慧和力量汉源湖又迎“老朋友”红嘴鸥乘坐冠名高铁再出发 雅安藏茶开启新征程Sports minister says audits into football, badminton federations set to conclude in Sept.寒潮来袭 这份保暖防寒提示请收好
- ·22 Unusual Things You Can Find in the Desert
- ·服务不缺位 业务不打烊 工作不断档
- ·用党的二十大精神指引人大工作发展 为推动现代化雅安建设贡献智慧和力量
- ·构建关爱政策体系 打造关爱保护阵地
- ·PS5 Pro: There are new whispers that the release date is fast approaching
- ·党代表参会笔记|李酌:紧扣高质量发展首要任务,谋划雅安未来发展路径
- ·喜迎二十大 争做好队员
- ·党代表参会笔记|李酌:紧扣高质量发展首要任务,谋划雅安未来发展路径
- ·To Russia, with Love
- ·全网发布683条图文稿件 实现点击量2.83亿人次
- ·雅安市应对新型冠状病毒肺炎疫情应急指挥部致全体市民的感谢信
- ·音乐与时尚的“邂逅”!无极四重奏专场音乐会精彩上演
- ·Apple iPod: The First 10 Years of the Ubiquitous Media Player
- ·22家企业荣获2023年雅安市“金熊猫”四金级及以上旅游服务单位称号
- ·雅安交警连破4起肇事逃逸案 逃逸者被集中拘留
- ·让冷水鱼成富民“热产业”