After much speculation, automobile manufacturer Tesla has finally made an announcement regarding their new car insurance offering. The Chief Executive Officer of the company, namely Elon Musk, had dropped in a teaser regarding the same earlier in April this year. According to the description provided by the company, the new car insurance offering is designed to provide a competitive price and ensure that Tesla owners have at least up to 20 percent lower rates. What’s more? Some cases might even receive the opportunity to enjoy as much as 30 percent lower rates. However, this varies from case to case.
According to a report published by TechCrunch, Tesla’s insurance is expected to be available in California. Following which, they are expected to enable the offering’s expansion to other U.S. states in the upcoming future. However, at the same time, there is no timetable established for everyone to refer to as yet. According to what Musk had earlier claimed, the automobile manufacturer would be able to offer numerous vast discounts for its owners as far as their offering is concerned.
One of the main reasons that this has been implemented is because the company already has a wide amount of access to reams of data. Each of the procedures consisted of this procedure. The organization had – in a blog post – briefly spoken about the insurance product that Tesla will be offering. As per what Tesla stated, the company’s numerous advanced safety features which include ‘Autopilot’ has ended up contributing well to the lower costs that have been put in place.
As can be recalled, Musk earlier in April stated that they have decided to make optimum use of the “information arbitrage opportunity” that they have in mind. It is through this that they will be able to gain direct knowledge of the risk profile of customers. He further went on to add that anyone who’d be interested in purchasing the Tesla insurance, would essentially be required to agree to the terms and conditions that entail them to not drive in a “crazy way.” Of course, if they want to drive in a “crazy way” then they would have to face insurance rates that are much higher than the normal ones. Tesla has explained that they will not be requiring any of the users to utilize or record vehicle data. Therefore, minute details such as GPS or vehicle camera footage, are not required to be shared with Tesla.