| 2 minutes read

2 minutes read

How Tesla Is Disrupting The Insurance Industry

| Published on August 19, 2021

Tesla’s Cybertruck has been a product that has seen a lot of fanfare in being one of the most innovative projects in the past but the most important product that the company offers has been one which hasn’t been spoken about rather much. Tesla started offering car insurance last September, that is, Tesla Insurance only for Tesla vehicles in some states of the United States of America.

The company claims to offer premiums 20% to 30% lower than rivals to those who are eligible for the Tesla insurance. However, you may not necessarily get an offer should you be residing in an area where you can get a Tesla Insurance Quote as the company may just refer you to a partner organisation depending on their criteria and whether you fulfil them.

There could be multiple reasons why Tesla now offers insurance but it’s safe to say that the real-time data that the company garners through its vehicular technology gives them a near accurate figure when it comes to the risk of accidents and repair costs that could potentially arise. Any time an accident takes place, Tesla has instant access to data about the driver behaviour that was the cause behind the accident. Moreover, an advantage for the company lies in the fact that some insurers charge a relatively high premium for Tesla cars and now that the company has integrated insurance in their value chain, they are bringing about those costs to offer a much lucrative offer to its consumers.

Insurance poses to be a barrier in multiple segments and proves to be a hindrance while purchasing any product or service. This move gives Elon Musk a fair advantage to try and test the product out and see whether it proves to be a lucrative field for the company. In the future, Tesla drivers will also gain an advantage in the long term with cheaper policy rates.

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