Tesla CEO Elon Musk hinted at a new insurance offering earlier this year and now the company has officially unveiled it.
Imaginatively named Tesla Insurance, the product is billed as a “competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates.” In some cases, the company claims drivers could actually save up to 30%.
The company says these savings are possible as “Tesla knows its vehicles best.” The automaker went on to explain they factor in the advanced technology, safety and serviceability of their cars to provide lower insurance rates than the competition. In effect, customers can save money costs thanks to their car’s advanced driver assistance features such as Autopilot.
Also Read: Tesla Hit With Wrongful Death Lawsuit Over Fatal Model 3 Autopilot Crash
Tesla insurance is currently available in California and the company says it will expand to additional U.S. states in the future. Those interested in checking it out can request a quote and purchase a policy in “as little as one minute.” The company also said their policies can be changed or canceled at anytime and will feature a “convenient monthly payment with no hidden fees or charges.”
The cost of the coverage will vary, but the company noted customers who own multiple Tesla vehicles may be eligible for further discounts. Tesla also said they wouldn’t use vehicle data – such as GPS positions or camera footage – to determine rates.
While it remains to be seen how well Tesla will handle their new insurance offering, the savings could be pretty significant. Earlier this year, QuoteWizard reported the average cost of car insurance in California was $841 annually. If Tesla could save owners 20%, that would mean an annual saving of nearly $168.
