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Tesla insurance market plans to expand in two more states of USA
According to the latest report, Tesla’s Tesla Insurance Plan launched its auto insurance business in Oregon and Virginia in the United States, and self-insured the policy for the first time.
Moreover, Tesla has previously launched its own insurance products in California but has not used real-time driving data and Tesla’s safety scoring system in premium calculations. Ultimately, Tesla hopes to create a safety scoring system before expanding its insurance product to other markets.
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According to data indicators such as “forward collision warning”, “emergency braking times”, “steering”, “following too close”, “forced to intervene in Autopilot” and other data indicators collected by Tesla electric vehicles in real-time during driving, to judge users is a “good driver”.
In October last year, Tesla launched a new insurance product based on a safety scoring system in Texas, USA. Tesla says drivers who score above average on the safety scoring system save 20% to 40% on premiums, and those with the highest scores save 30% to 60% compared to competing for insurance products.
However, after comparing different auto insurance quotes, the market found that it was not completely certain that Tesla’s insurance products were the cheapest. For owners who pay high premiums based on age and gender, Tesla insurance appears to cost more than other insurance policies. Tesla insists that, unlike other insurers, it does not factor in factors such as age and gender in premium calculations.
In December, Tesla expanded its insurance product business to the U.S. state of Illinois. Earlier this year, Tesla Insurance expanded to Arizona and Ohio and has now launched insurance services in five states in total. But Tesla Insurance’s California-based insurance business is not yet able to provide complete real-time driving data.
It is very difficult to promote a new insurance product in the US market because it needs to be promoted on a state-by-state basis. But last year, Tesla CEO Elon Musk set an ambitious goal, saying Tesla Insurance plans to operate “in most U.S. states” by the end of 2022.
Since the beginning of this year, Tesla Insurance has begun to expand its business in some states. Tesla will expand insurance operations in Oregon and Virginia, the latest filings show. “Austin, Texas-based Tesla currently provides auto insurance in Arizona, California, Illinois, Ohio, and Texas,” the report said.
According to state insurance documents reviewed, Tesla The next step is to start selling auto insurance in Oregon and Virginia, where for the first time the policies will be underwritten by Tesla General Insurance, rather than partnering with third-party companies as in other states .”
The bright spot is that Tesla plans to no longer underwrite these policies through a third party, but instead through an entity called Tesla General Insurance. It marks another major step in Tesla’s expansion of its insurance business, which is critical to the company’s plans to deploy self-driving technology.