Tesla launches car insurance offering in California


Tesla has finally announced its car insurance offering that CEO Elon Musk teased back in April. The company describes it as a “competitively priced insurance offering designed to provide Tesla owners with up to 20 percent lower rates, and in some cases as much as 30 percent.” Tesla’s insurance will be available in California to start, and it will “expand to additional US states in the future,” the company says, though no timetable was given.
Musk originally claimed that Tesla would be able to offer such vast discounts on insurance for its cars because the company has access to reams of data that each one produces. In a blog post about the insurance product, Tesla says the company’s advanced safety features, such as Autopilot, also contribute to the lower cost.
“We essentially have an ... information arbitrage opportunity where we have direct knowledge of the risk profile of customers,” Musk said in April. “And then if they want to buy Tesla insurance, they would have to agree to not drive the car in a crazy way. Or they can, but then their insurance rates are higher.”
All that said, Tesla explains that it “does not use nor record vehicle data, such as GPS or vehicle camera footage, when pricing insurance.”
Lower-priced insurance might seem like a tantalizing offering, but the cost to insure Tesla’s cars is already a bit higher than average; the Insurance Institute for Highway Safety ranked the Model S as the most expensive vehicle to insure in 2018.
Tesla promised existing customers in California the ability to purchase an insurance policy in “as little as one minute” on its website. New customers can request a quote, too.
For Tesla, offering insurance policies gives the company another chance to pad its margins as it searches for sustainable profitability. But if Tesla winds up having to pay out too many claims, it could also deplete the company’s cash reserves.

Comments

Post a Comment

Popular posts from this blog

Linktree’s free workaround lets you add multiple links to your Instagram bio

Image
Instagram only gives you one opportunity to link to outside resources inside its photo sharing platform. This might not be a problem for a majority of the users, but for those wanting a little more customization and even more options, it leaves much to be desired. Enter  Linktree , a free tool for Instagram designed to improve traffic to your outside link, be it a blog, portfolio, or store. How it works is fairly straightforward. After connecting Linktree to your Instagram profile, you’ll receive a single link to place in your Instagram bio. Once that link in place, you can customize what it’s linked to within your browser, be it a single website, or a collection of sites you’re looking to direct followers to Say you’re a photographer who’s using Instagram as a marketing tool for your wedding photography. Using Linktree, you can direct Instagram followers to your blog, your portfolio site, and even your other social media accounts. Until now, you would’ve been stuck c...
Read more

EVERYTHING WE KNOW ABOUT THE PIXEL 4, THE MOST-LEAKED PHONE EVER

Image
Google’s  Pixel 3 might have been the  most-leaked phone in history . Long before its unveiling, we knew practically everything about it from unboxing videos, photo comparisons, even a full review of the device. Surely, for the Pixel 4, Google would clamp down on leaks to leave some surprises for its debut on  October 15th , right? Let’s just say, if that was the plan, it didn’t exactly work out. We’ve now seen the Pixel 4 XL from every angle and in three different colors. At least seven different sources have touched this phone, many of them confirming the same specs. We not only know which cameras it’ll have, but also what they may be capable of, including air gestures (go figure). That doesn’t even count information Google has already shared  on purpose. So if you want to know almost everything about the Pixel 4 nearly a month before it’s announced, buckle up. We’ve sifted through all of the rumors and information we can find to compile everything we know —...
Read more

Stable Android 10 starts hitting the Galaxy Note10 and Note10+ (Update: Canada)

Image
UPDATE  1 : 2019/12/16 4:35AM PST Previous rollouts UPDATE  2 : 2020/01/06 2:15AM PST Canada Two weeks after the  Galaxy S10 line received its stable One UI 2.0 build , it’s time for the Galaxy Note10 and Note10+ to get the latest Android flavor. According to a report by  SamMobile , the two late-2019 Samsung flagships are receiving the Android 10 update in Germany, although the rollout is limited to a small group of beta testers. This stable release follows a  five-round beta testing  that concluded just a couple of days ago. Samsung is rolling out the stable build only to its beta testers in Germany to possibly look out for any major bug. Besides SamMobile, the confirmation also comes from  some Redditors  who got the update in Germany just a few hours back. The same Reddit users also mention that Google Pay remains broken even after installing this final Android 10 firmware, although it wasn’t immediately clear how widespread t...
Read more