Tesla is seeking to expand its auto insurance offering into two more states – Oregon and Virginia.
Tesla insurance products are currently available in Arizona, California, Illinois, Ohio, and Texas.
The electric vehicle manufacturer first launched its pilot insurance program that uses policyholder driving behavior to set rates.
In Arizona, Illinois, Ohio, and Texas, the “safety scores” generated by Tesla’s onboard telematics systems in its vehicles are available for drivers to view and use in insurance rate-setting;
California regulations have not yet allowed the use of telematics data in insurance.
Tesla entitles drivers with high safety scores can save 20% to 60% on their insurance costs.
Tesla’s insurance policies in Oregon and Virginia will be underwritten by its in-house insurance business, Tesla General Insurance.
This is a departure from Tesla’s previous insurance offerings in other states.
Previously, the automaker collaborated with insurance companies to provide coverage. Tesla had previously filed paperwork with Washington state regulators but has yet to begin selling insurance in the region.
Tesla CFO Zachary Kirkhorn stated during an earnings call earlier this year that the company intends to eventually roll out auto insurance nationwide.
He also stated that Tesla’s goal is to have insurance in enough locations that 80 percent of the company’s customers can buy their auto insurance from Tesla.
Tesla CEO Elon Musk stated in 2020 that auto insurance could account for 30 to 40% of the company’s car business.
Source: Insurance Business America