Photo: Tesla on YouTube
The richest man in the world keeps himself informed through the only social media platform that he likes. Elon Musk found out about the GEICO insurance fiasco where an unexpected decision led to a multi-million-dollar payout possibility. He didn’t leave Twitter without offering some feedback.
Elon Musk runs two very important companies and is trying his best to buy another one. He’s slowly getting involved in everything that moves. From cars to rockets and social media, the entrepreneur wants to do it all. This autumn he’ll also introduce the first humanoid robot capable of replacing humans in mundane or dangerous activities – the Tesla Bot.
But Elon Musk never loses sight of Tesla and its quest to conquer the whole world. Besides selling cars and developing important technology for autonomous driving, the American EV maker is also in the insurance business. Until now, this has proven to be an incredibly smart move. Data’s always there to be analyzed and a driver profile can easily be generated with an increased degree of certainty. Customers are also happy thanks to low premiums that don’t leave a dent in the family budget.
But when the GEICO case first started to make waves, almost nobody believed that you could get a $5.2 million payday after enjoying yourself with someone else. Unfortunately for the woman, she contracted HPV in her date’s car. She filed a claim and won. The insurance company isn’t forced to pay yet, since the settlement reached the federal courts.
Tesla’s CEO reacted to the news on Twitter, where he said that “crazy damages claims like this are a big part of why car insurance costs so much.” Elon Musk is trying to argue that companies need to take an extra layer of precautions when they enter the insurance business. This automatically raises the costs which, eventually, reach the consumer.
The well-known executive followed up and said “it should be possible to sue law firms for pursuing insane damages claims.” Multiple Twitter users agreed with him, but it’s currently allowed to do exactly that. If there are exorbitant amounts of damages sought after by a party, then the opposing side can always file for sanctions since it falls under the rules of Professional Responsibility for lawyers. It can even lead to disbarment. Winning, however, is another topic entirely.
Now let's keep an eye on Tesla Insurance. Some terms and conditions changes might come sooner rather than later.
But Elon Musk never loses sight of Tesla and its quest to conquer the whole world. Besides selling cars and developing important technology for autonomous driving, the American EV maker is also in the insurance business. Until now, this has proven to be an incredibly smart move. Data’s always there to be analyzed and a driver profile can easily be generated with an increased degree of certainty. Customers are also happy thanks to low premiums that don’t leave a dent in the family budget.
But when the GEICO case first started to make waves, almost nobody believed that you could get a $5.2 million payday after enjoying yourself with someone else. Unfortunately for the woman, she contracted HPV in her date’s car. She filed a claim and won. The insurance company isn’t forced to pay yet, since the settlement reached the federal courts.
Tesla’s CEO reacted to the news on Twitter, where he said that “crazy damages claims like this are a big part of why car insurance costs so much.” Elon Musk is trying to argue that companies need to take an extra layer of precautions when they enter the insurance business. This automatically raises the costs which, eventually, reach the consumer.
The well-known executive followed up and said “it should be possible to sue law firms for pursuing insane damages claims.” Multiple Twitter users agreed with him, but it’s currently allowed to do exactly that. If there are exorbitant amounts of damages sought after by a party, then the opposing side can always file for sanctions since it falls under the rules of Professional Responsibility for lawyers. It can even lead to disbarment. Winning, however, is another topic entirely.
Now let's keep an eye on Tesla Insurance. Some terms and conditions changes might come sooner rather than later.
Crazy damages claims like this are a big part of why car insurance costs so much
— Elon Musk (@elonmusk) June 10, 2022
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