Tesla new auto insurance product only for Texas

Tesla new auto insurance product only for Texas

The United States car manufacturing company Tesla has announced a new auto insurance product for its Texas-based customers.

According to the company, this new insurance product, for now, will only be available in Texas. Elon Musk, Tesla CEO, had earlier said the company will be moving its headquarters to Austin, Texas where the firm is building a new factory from its present base in California.

It will be made available to owners of Tesla’s Model S, Model 3, Model X, and Model Y vehicles in Texas. A safety score of 90 will initially be assigned to those who apply for a quote. Subsequently, drivers’ scores and their premiums will be adjusted based on their performance, reports Electrek

The new auto insurance uses – real-time driving behavior – to determine customers’ insurance rates, which makes it different from the previous insurance product it offered in California, which did not use drivers’ real-time data. It does not require additional devices to be installed in consumers’ vehicles for their real-time driving monitoring function to work.

It, however, uses – specific features within the vehicle – to evaluate drivers’ behaviors and determine their premiums.

Tesla further stated that the new auto insurance product for Texas, just like the one being offered in Califonia, will continue to use Tesla’s safety score system.  This system takes into consideration aggressive turning, hard braking, and unsafe following distance when pricing a driver’s insurance costs.

Using this new product, drivers should be able to save between 20% and 40% on their insurance costs compared to competitors for those with an average safety score. Also, savings on insurance costs of between 30% to 60% can be achieved by drivers with the highest safety scores, the auto firm stated.

The auto manufacturer has said it will not be calculating premiums based on the age or gender of policy holders.

Tesla also excited prospective consumers by saying that it will not take drivers’ accident histories into consideration.

 

 

 

Author: Greg