Tesla Getting Serious About Motor Insurance?

Watch out insurers, Tesla has launched another insurance product, promising owners rates 20%-30% lower than other insurance providers. Tesla Insurance will only be available to owners in California initially. Tesla CEO Elon said it will be “much more compelling than anything else out there.” The company argues that Tesla Insurance will be able to provide insurance at a lower cost by leveraging the “advanced technology, safety, and serviceability of our cars.” In short, Tesla is saying that its deep insight and familiarity with its own vehicles gives it a better understanding of the technology and repair costs. This helps eliminate fees taken by traditional insurance carriers. I think what is more important is the data will help them cherry pick the good drivers. It won’t be long before the other MV manufacturers are embedding insurance in the new car proposition using tech and data to make the proposition easy, simple and frictionless for the consumer. A big challenge for incumbents and there is no easy competitive response - the incumbents don't have the data and they have no position in the sales cycle! Read more.

Source: TechCrunch