Elon Musk’s Tesla is getting into the insurance business: the company just launched Tesla Insurance to customers in California.
The company said on Wednesday that they would offer rates that are between 20% and 30% lower than other insurance companies. Tesla said that their insurance would offer Tesla drivers “comprehensive coverage and claims management,” adding that it will expand coverage to more states in the future.
“Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost. This pricing reflects the benefits of Tesla’s active safety and advanced driver assistance features that come standard on all new Tesla vehicles,” the company wrote in a blog post announcing the new venture.
The company also said that it would expand its insurance plan in the future to offer as a commercial policy for those who use their cars for ridesharing apps like Uber and Lyft.
California residents who own or have already ordered a Model S, Model X, Model 3 or Roadster, can go to the Tesla Insurance website to get a free quote. Tesla said that pricing would vary based on the individual, taking into account their driving records
Tesla CEO Elon Musk first hinted at Tesla Insurance back in April, according to CNBC. Musk, who is active on Twitter, hasn’t mentioned anything on the platform about the new insurance offering since it debuted.
In 2016, Tesla began to offer its InsureMyTesla program to Tesla vehicle owners in Australia and Hong Kong by partnering with larger insurance companies. Those prices were estimated to start at $900 a year for an insurance plan.
Tesla’s cars offer a lot to their owners, but their advanced systems typically require specialized repair, driving up the price of insurance for most Tesla drivers. According to ValuePenguin, the annual cost of insuring some Tesla models tops out at around $3,000 per year.
It’s not clear if Tesla might eventually offer their insurance program to owners of other kinds of cars. Digital Trends reached out to Tesla for more information on Tesla Insurance, but we have yet to receive a response.
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