Tesla filing to expand insurance products into 3 additional states

The California based auto manufacturer is filling with state regulator to expand it’s insurance product into Illinois, Texas and Washington.

Tesla currently offers insurance in California leveraging driver behaviour and usage data, allowing for insurance rates to be linked directly to the driver’s risk. Tesla currently leverages aggregated data to rate, a variant on usage-based insurance. The Tesla vehicle owner exclusive insurance is estimated to offer up to 30% in saving through various cost saving strategies, including; digital experience, digital claims, better risk assessments, “smarter” vehicles, lower acquisition costs and improved retention.

Telsa is bringing auto insurance into Illinois, Texas and Washington. Tesla hopes insurance will one-day account for 30-40% of car business

The goal according to Elon Musk, is for auto insurance to one day represent between 30 and 40% of their auto business. The 3 new states would offer similar pricing and terms and be available on the all of their current models (X, Y, S and 3). The California policies are underwritten by State National Insurance Co., yet no confirmation was available that the same underwriter would cover the new states.

Read the Forbes analysis https://www.forbes.com/advisor/car-insurance/tesla-insurance/