Photo: Via Electrek
Tesla Motors has released its insurance product to customers in Texas. It will use safety scores as the determining factor in premium cost. This is a departure from the method used in California.
Elon Musk has wanted to build insurance into the Tesla business model since at least mid-2020. Today, we can confirm that the product is live and available in a second state, Texas.
Interestingly enough, Tesla calculates premiums differently depending on the state. In California, a number of factors are in play. In Texas, Tesla uses "real-time driving data" to calculate a "Safety Score". That score is a major factor that determines the premium cost.
The news shouldn't come as a shock though. Less than two months ago, we reported on how that "Safety Score" is more closely linked to a "risk score". We also highlighted how it could play into insurance premiums.
Tesla points out that there are some benefits to the program like not needing a device to report your scores to the company. It also says that all new applicants will start out with an assumed score of 90. Finally, it says that previous accident history won't be a factor in final premium cost. That factor itself could encourage some to inquire.
According to Tesla, Texas customers will have their premium calculated "based on what vehicle you drive, your provided address, how much you drive, what coverage you select, and the vehicle’s monthly Safety Score. An average driver could save between 20% to 40% and the safest drivers could save between 30% to 60%."
The "Safety Score" takes into account hard braking and aggressive turning. Will that mean that more passionate drivers suffer lower scores even when conditions allow for such driving? We hope that the other factors considered, unsafe follow distance, forward collision warnings per 1,000 miles, and forced Autopilot disengagement will hold greater weight.
They also say that they'll cover non-Tesla vehicles. There's no word on exactly how Tesla calculates those premiums. We assume they take the same factors into account sans the "Safety Score".
Interestingly enough, Tesla calculates premiums differently depending on the state. In California, a number of factors are in play. In Texas, Tesla uses "real-time driving data" to calculate a "Safety Score". That score is a major factor that determines the premium cost.
The news shouldn't come as a shock though. Less than two months ago, we reported on how that "Safety Score" is more closely linked to a "risk score". We also highlighted how it could play into insurance premiums.
Tesla points out that there are some benefits to the program like not needing a device to report your scores to the company. It also says that all new applicants will start out with an assumed score of 90. Finally, it says that previous accident history won't be a factor in final premium cost. That factor itself could encourage some to inquire.
According to Tesla, Texas customers will have their premium calculated "based on what vehicle you drive, your provided address, how much you drive, what coverage you select, and the vehicle’s monthly Safety Score. An average driver could save between 20% to 40% and the safest drivers could save between 30% to 60%."
The "Safety Score" takes into account hard braking and aggressive turning. Will that mean that more passionate drivers suffer lower scores even when conditions allow for such driving? We hope that the other factors considered, unsafe follow distance, forward collision warnings per 1,000 miles, and forced Autopilot disengagement will hold greater weight.
They also say that they'll cover non-Tesla vehicles. There's no word on exactly how Tesla calculates those premiums. We assume they take the same factors into account sans the "Safety Score".
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