Tesla Insurance is available to Tesla vehicle owners in certain U.S. states, with intentions to expand.
Tesla Insurance promises to provide affordable prices and comprehensive coverage utilizing car sensor data and Tesla’s technology, safety, and repair cost expertise.
In this article, we will explain what Tesla Insurance is, how it works, what factors affect its cost, and what are its pros and cons. We will also review the customer experience and ratings of Tesla Insurance.
Understanding Tesla Insurance
Tesla Insurance is Tesla-specific automotive insurance. It provides full coverage and claim handling for Tesla owners in certain U.S. states, with more planned. Tesla eliminates insurance company fees because it knows its cars, technology, safety, and maintenance costs.
Coverage options for Tesla vehicles
Tesla Insurance provides the following coverage options for Tesla vehicles:
- Liability: Covers bodily injury and property damage that you cause to others in an accident.
- Collision: Covers damage to your vehicle caused by a collision with another vehicle or object.
- Comprehensive: Covers damage to your vehicle caused by events other than collision, such as theft, fire, vandalism, or weather.
- Medical payments: Covers medical expenses for you and your passengers in an accident, regardless of fault.
- Personal injury protection: Covers medical expenses, lost wages, and other expenses for you and your passengers in an accident, regardless of fault. This coverage is mandatory in some states and optional in others.
- Uninsured/underinsured motorist: Covers bodily injury and property damage that you suffer in an accident caused by a driver who has no insurance or insufficient insurance.
- Rental reimbursement: This covers the cost of renting a car while your vehicle is being repaired after a covered claim.
- Roadside assistance: Covers towing and other emergency services if your vehicle breaks down or needs assistance on the road.
Special coverage for identity fraud and electronic key
Tesla Insurance also offers two special coverage options that are unique to Tesla vehicles:
- Identity fraud expense: This covers the cost of restoring your identity if it is stolen or compromised due to a cyberattack on your vehicle or account.
- Electronic key replacement: This covers the cost of replacing your electronic key if it is lost, stolen, or damaged.
Factors Affecting Tesla Insurance Cost
Tesla Insurance claims to offer competitive rates that reflect Tesla’s active safety and advanced driver assistance features which come standard on all new Tesla vehicles. However, the cost of Tesla Insurance may vary depending on several factors, such as:
Real-time driving behavior and monitoring
Tesla offers insurance using real-time driving behavior. This is currently available to all Model S, Model 3, Model X, and Model Y owners in select U.S. states. Unlike other telematics or usage-based insurance products, Tesla does not require an additional device to be installed in your vehicle. Tesla uses specific features within the vehicle to evaluate your premium based on your actual driving.
Tesla Safety Score
Tesla uses real-time driving data to calculate your Tesla Safety Score. This score is based on several metrics, such as forward collision warnings per 1,000 miles, hard braking events per 1,000 miles, aggressive turning events per 1,000 miles, unsafe following time per 1,000 miles, and forced autopilot disengagements per 1,000 miles. Your score at the end of the month determines your next month’s premium. You can monitor and review your daily driving behavior with Trip View in the Tesla app to learn how to improve your Safety Score.
Insurance discounts offered by Tesla
Tesla Insurance may offer discounts based on various factors, such as:
- Multi-car discount: You may get a discount if you insure more than one vehicle with Tesla Insurance.
- Multi-policy discount: You may get a discount if you bundle your car insurance with other insurance products offered by Tesla or its partners.
- Autopilot discount: You may get a discount if you use Autopilot frequently and safely.
- Low mileage discount: You may get a discount if you drive less than the average mileage for your vehicle type and location.
- Safety features discount: You may get a discount if your vehicle has certain safety features installed or enabled.
Pros and Cons of Tesla Insurance
Tesla Insurance has some advantages and disadvantages that you should consider before buying it. Here are some of them:
Pros
- Competitive pricing: Tesla Insurance claims to offer lower rates than traditional insurance providers by using data from the vehicle’s sensors and Tesla’s knowledge of its technology, safety, and repair costs.
- Access to tools for safer driving: Tesla Insurance provides you with access to tools that can help you drive safer, such as Trip View and Safety Score. You can also get rewarded for your safe driving behavior with lower premiums.
- Easy access and management: You can purchase and manage your policy, view your insurance card and policy documents, update your payment method, and submit claims from the Tesla app. You can also contact Tesla Insurance for any questions or issues.
Cons
- Limited availability: Tesla Insurance is currently only available in select U.S. states, with additional states coming in the future. If you live in a state where Tesla Insurance is not available, you will have to find another insurance provider for your Tesla vehicle.
- Potential limitations or drawbacks: Tesla Insurance may have some limitations or drawbacks that you should be aware of, such as:
- Data privacy and security: Tesla Insurance uses real-time driving data to calculate your premium and Safety Score. This means that Tesla has access to your driving behavior and location data, which may raise some privacy and security concerns. Tesla claims that it does not share your data or monitor your location and that your data stays with you. However, you should read the terms and conditions carefully before agreeing to share your data with Tesla Insurance.
- Repair network and parts availability: Tesla Insurance may require you to use Tesla’s approved repair network and parts for your vehicle repairs. This may limit your choices and options for finding the best repair service and parts for your vehicle. It may also affect the availability and cost of parts, especially if there is a high demand or shortage of parts for Tesla vehicles.
- Coverage exclusions and limitations: Tesla Insurance may have some exclusions and limitations on its coverage that may affect your claim eligibility and payout. For example, Tesla Insurance may not cover damage caused by racing, off-roading, or using your vehicle for commercial purposes. You should read the policy documents carefully to understand what is covered and what is not covered by Tesla Insurance.
Tesla Insurance Reviews and Customer Experience
Tesla Insurance is a relatively new product that was launched in 2019. Therefore, there are not many customer reviews and ratings available for it. However, based on some online sources, we can get a general idea of the customer experience and satisfaction with Tesla Insurance.
According to MarketWatch, Tesla Insurance has received mixed reviews from customers. Some customers have praised Tesla Insurance for its low rates, easy sign-up process, and convenient app features. Others have complained about its limited availability, poor customer service, and lack of transparency on pricing and coverage.
According to Insurance Panda, Tesla Insurance has an average rating of 3.5 out of 5 stars based on 12 reviews. Some customers have reported saving money by switching to Tesla Insurance from their previous providers. Others have experienced issues with billing, claims, and communication with Tesla Insurance.
According to Trustpilot, Tesla has an overall rating of 2.1 out of 5 stars based on 1,016 reviews. However, these reviews are not specific to Tesla Insurance, but rather to Tesla as a company. Some customers have expressed their satisfaction with their Tesla vehicles and services. Others have encountered problems with delivery, quality, service, and support from Tesla.
