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Elon Musk also pays for car insurance: Should you ask Tesla to insure your car? | Gadgets 36T

Elon Musk also pays for car insurance: Should you ask Tesla to insure your car? | Gadgets 36T
Elon Musk also pays for car insurance: Should you ask Tesla to insure your car? | Gadgets 36T

As with the electric car industry, Elon Musk intends to revolutionize auto insurance by promising drivers’ premium discounts of up to 60%.

Tesla Insurance launched in Colorado, Oregon and Virginia this month after rolling out its services in Texas, Illinois, Arizona, Ohio and (to a limited extent) California. The

company, which hopes to expand to most other states this year and internationally in the future, says its customers are now free about their credit score, age, sex and even gender.

As tempting as it sounds, Tesla insurance may not be the ideal option for everyone, if it is an option at all.

Do you belong to a club?

Since its inception, Tesla Insurance has only been available to Tesla car owners, and there are no plans to change that.

says the reason it offers lower fares in the first place is because it has an "excellent understanding of its vehicles" and their "technology, safety and repair costs."

If you don't have a Model S, Model X, Model 3, or Model Y, you'll have to look elsewhere to find a great discount on auto insurance.

And while Musk plans to someday offer domestic global coverage, you might have to wait a bit depending on where you live.

"The regulatory process for approving insurance business is extremely slow and complex and varies greatly from state to state," he tweeted last year.

Why switch to Tesla Insurance

Electric cars typically cost more to repair or replace than their gas-powered counterparts, and as luxury EVs, Tesla’s can be even more expensive.

Motor trend looked at how much it would cost each year to insure the various models from a traditional provider. These averages assume, among other things, that the owner is a 40-year-old single male with a clean criminal record and good credit:

  • Tesla Model 3: $2,114 - $2,351
  • Tesla Model S: $3,673 - $4,143
  • Tesla Model Y: $2,118 - $2,227
  • Tesla Model X: $3,355 - $4,025

The average driver could save 20% to 40% by switching, Tesla says, while some drivers could save 30% to 60%.

The company says it can charge less because it trusts its cars' advanced safety features and the driving data it collects directly from your vehicle.

"Tesla uses certain in-vehicle functions to estimate rewards based on actual driving," Tesla's statement said. "They make monthly payments based on driving style rather than traditional factors like credit score, age, gender, claims history and driving history used by other insurers."

That's a big change. While many other insurers offer discounts if you install a tracker and drive safely, they typically use that data along with your credit score, claims history, and other factors to determine rates. Finally, being held accountable for your behavior can force you to drive more carefully, even if it means getting to your destination a little slower.

"Getting real-time feedback on driving habits allows Tesla owners to drive their cars more safely because they can see... 'Okay, whether or not this will affect my insurance rate,'" Musk said in a call to April -Revenue.

Why Some Are Canceling Tesla Insurance

Speed ​​demons who don't want to switch may not like their insurer knowing how they actually behave behind the wheel, especially if they've had a good driving record or enjoyed excellent credit.

Some drivers also choose not to install tracking devices for privacy reasons, in which case it should be noted that the technology required to use Tesla Insurance is already installed in Tesla vehicles.

And while the company is keen to use the data in most states where it does business, California law prohibits insurers from using behavior-tracking technology to set insurance rates.

“We want real-time insurance, where insurance costs are based on actual driving history, which is the way to go”; Musk said at a shareholder meeting last year. "So, we're trying to get permission from regulators."

Tesla does not currently use data from individual cars in California, instead relying on anonymous information collected from a variety of drivers. That means a Model Tesla driver in Cali pays the same fare as a daredevil who corners and brakes at the last minute, assuming no one is involved in an accident. Golden State

Tesla owners would do well to compare quotes from multiple companies to ensure Tesla Insurance is always offering the best rate.

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