Tesla's Low cost Auto Insurance Rolls To One other State – Ought to You Get On? – SGE – Sports activities Grind Leisure
Tesla's Discount Auto Insurance Rolls To Another State – Should You Get On?
After a limited and frustrating start, Elon Musk is finally getting his chance to revolutionize the auto insurance industry.
Tesla Insurance launched in Texas this week, free of the laws that have tied its technology in California for the past two years.
The company, which is hoping to expand to most other states next year, says drivers in Texas are not judged on their creditworthiness, age, gender, or even claims history. This can mean savings of up to 60% on premiums.
While this number certainly needs attention, it doesn't mean that Tesla Insurance is automatically the right choice for you either.
Are you part of the club?
Courtesy of Tesla, Inc.
Tesla insurance is only available to Tesla car owners out-of-the-box, and there are no plans to change that.
The company says the primary reason for lower prices is because it understands "its vehicles are unique" and their "technology, safety and repair costs".
If you don't own a Model S, Model X, Model 3, Model Y, or Roadster, you'll need to look elsewhere to find a big discount on auto insurance.
And while Musk plans to offer its in-house insurance around the globe one day, you may have to wait a bit depending on where you live.
"The regulatory process for admission to the offer of insurance is extremely slow and complex, and varies significantly from state to state," he wrote on Twitter last month.
Why you could switch to Tesla insurance
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Electric cars typically cost more to repair or replace than their gas-guzzling counterparts, and as a luxury electric vehicle, Teslas can be even more expensive.
Motortrend recently looked at how much it would cost to insure the different models available with a traditional provider each year. Among other things, these averages assume that the owner is a single 40-year-old man with a clean balance sheet and good credit:
Tesla Model 3: $ 2,114- $ 2,351
Tesla Model S: $ 3,673 – $ 4,143
Tesla Model Y: $ 2,118- $ 2,227
Tesla Model X: $ 3,355- $ 4,025
An average driver could save between 20 and 40% by switching, says Tesla, while some drivers could save between 30 and 60%.
The story goes on
The company says it can charge less because it trusts its cars' advanced safety features – and the driving data it collects right from your vehicle.
"Tesla uses specific functions within the vehicle to evaluate your reward based on your actual driving style," Tesla said in a statement. "You pay monthly payments based on your driving behavior instead of traditional factors such as creditworthiness, age, gender, claims history and driving records used by other insurance providers."
This is a big change indeed. While many other insurers offer discounts if you install a tracking device and drive safely, they usually use this data along with your creditworthiness, claims history, and other factors to determine your rates.
Why some could do without Tesla Insurance
pkoundinya / Twenty20
While the company is excited about using data in Texas, California laws prohibit insurers from using behavior-tracking technology to set auto insurance rates.
"We want real-time insurance where your insurance costs are based on your actual driving history, which is the right way to go," Musk said at a shareholders meeting earlier this month. "So we're trying to get permission from the regulators."
Currently, Tesla does not use individual car data and instead relies on anonymous information gathered from a broad pool of drivers.
This means that an exemplary Tesla driver in Cali pays the same price as a daredevil who does switchbacks and brakes at the last minute – provided that no one is actually involved in an accident.
Tesla owners in the Golden State should compare offers from multiple companies to ensure that Tesla Insurance still offers the best rate.
In this way, all motorists can save on insurance
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For most drivers in most states, saving 20% or 60% on Tesla insurance is simply not an option. Fortunately, whether they live in Texas or Rhode Island and whether they own a Model S or a Toyota Corolla, drivers have several options for cutting their premiums.
The first thing you can do is explore your options.
Insurers consider all possible risk factors to determine your premiums, including your vehicle, driver's license, zip code, and even your marital status. And since each insurer uses their own formula, you can make huge savings just by looking for multiple quotes.
If you haven't compared offers this year – or in recent years – you may be paying hundreds of dollars more than necessary. You can also save on home insurance and health insurance using the same strategy.
Another way to save on car insurance is to improve your credit score. In most states, insurers can use your credit information to set your premiums, and they consider people with large debts to be an inherent risk taker.
The more debt you have, the more likely it is that you will pay a high price for insurance. So try some tactics to get out of debt faster.
This article is for information only and is not intended as advice. It is provided without any guarantee.