Tesla is going to launch a new insurance program set to launch next month, according to Elon Musk. The program comes as many Tesla buyers are complaining about the price of insurance for Tesla’s vehicles.
Two years ago, we published an exclusive report revealing that Tesla was working on a new car insurance program, which it started offering to its customers in Australia and Hong Kong. It has since expanded into several other markets including North America.
This was only a first step toward building its own insurance products.
Last year, Tesla hired Alex Tsetsenekos, a former exec at Liberty Mutual, Tesla’s partner for InsureMyTesla in the US, and several other insurance companies, to lead what he described as a ‘Customer Centric Insurance Company’.
During a conference call following the release of its Q1 earnings, Musk confirmed that they aim to launch their new insurance program next month:
“It will be more compelling than anything else.”
Musk argues that they have better information than insurance companies when it comes to the impact of Autopilot and other safety features.
The CEO even hinted that Tesla could know how dangerously people drive their cars and adjust the premiums accordingly.
Using data from the Insurance Institute for Highway Safety, 24/7 Wall St. came up with a list of the 25 most expensive vehicles to insure based on insurance claim frequency and insurance cost per vehicle.
Tesla’s Model S topped it with an annual average insurance paid of $1,789.48 and annual collision insurance paid of $1310.40.
Last year, some insurance companies announced that they would increase their rates on Tesla’s vehicles based on a report that claimed “abnormally high claim frequencies” from Tesla owners.
Many Tesla owners have complained about quotes for Tesla vehicles higher than they are used to for vehicles of similar prices.
Musk has previously said that the insurers charging high premiums for Tesla vehicles weren’t competitive and suggested that Tesla owners simply change insurers if they weren’t satisfied.
But he also said that they will be working more closely with them to make sure the rates are fair — especially with the advent of autonomous driving and active safety features in Tesla’s vehicles.
During today’s conference call, the CEO reiterated that Tesla is still working with insurers, but they will have their own product soon.
