Tesla has created a customised insurance program, InsureMyTesla, that claims to be cheaper than traditional plans because its specifically tailored to their advanced safety features, such as the Autopilot system.
InsureMyTesla is already available in twenty countries and is underwritten by insurers partnering with Tesla. In New Zealand, Tesla is partnering with Vero Insurance.
The insurance package demonstrates how the insurance industry is bound for disruption as cars get safer with self-driving capabilities.
Until then, Tesla’s safety features should theoretically reduce insurance rates. However some Tesla owners have reported that they have been paying higher than average premiums to drive their electric cars.
Tesla CEO Elon Musk has said that insurance agencies should adjust their prices for Tesla vehicles because the cars come with Autopilot, the company’s advanced assisted feature.
“Not to the exclusion of insurance providers but if we find that insurance providers are not matching the insurance proportionate to the risk of the car, then if we need to, we will in-source it,” Musk said in February.
The deal with Vero Insurance shows how New Zealand insurance agencies are starting to understand that they must adjust their prices as cars get safer.
In the near future Tesla hopes to package the price of insurance and maintenance into the price of future vehicles.
“It takes into account not only the Autopilot safety features but also the maintenance cost of the car,” Jon McNeill, Tesla’s vice president of sales and services, has said of InsureMyTesla. “It’s our vision in the future we could offer a single price for the car, maintenance, and insurance.”
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