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Tesla becomes its own insurer

by

Aurélia Morvan

3 September 2019 13:30

Photo : tesla.com

After having proposed insurance coverages tailored in partnership with leading insurers, Tesla soars in solitary in the United States. On 28 August, the electric car-maker has launched Tesla Insurance, an insurance solution ” at a competitive price “.

Take advantage of the technology

The new program, which provides comprehensive coverage and management of claims, was ” designed to provide Tesla owners premiums reduced by up to 20 %, and in some cases up to 30 % “, says the manufacturer.

“Because Tesla knows the best use of its vehicles, Tesla Insurance is able to take advantage of the advanced technology, safety and ease of maintenance of its cars to provide insurance at a lower cost,” says the manufacturer.

First in California

The insurance policy of Tesla can be purchased online “in a minute just,” and customers can cancel or modify it ” at any time “, promises Tesla.

Launched in California in a first time, Tesla Insurance will be available in other u.s. states. To date, Liberty Mutual was the insurer partner of the manufacturer in the United States.

Nothing has been announced for the canadian market, for the time being. In Canada, it is Aviva that offers exclusive InsureMyTesla, the insurance program on the extent of Tesla.

A “threat” to insurers

GlobalData has not been slow to comment on this announcement. According to Ben Carey-Evans, analyst at the assurance firm specializing in data and analyses, assurance of Tesla represents ” a threat to the big insurance companies “. In fact, according to him, the big players in insurance “could be completely excluded from the process of purchase, since the owners will be able to ensure their car directly from the manufacturer,” and this at a lower cost.

“Vehicles equipped with the technology are often more expensive to insure than conventional cars, which is a big problem for consumers, because the price is essential for them when they are considering buying auto insurance,” continued Mr. Carey-Evans.

In parallel, the analyst indicates to expect that Tesla “also focuses on other markets” than the United States. “The United Kingdom will probably be one of the key targets, given the behavior of consumers in the country,” he explained. In fact, according to a survey conducted by GlobalData, 63 % of british consumers use comparison sites rates to purchase a auto insurance, ” which confirms that the price is a determining factor in their decision.”

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