Tesla promises new auto insurance solution for May launch
Published: April 25, 2019
Updated: June 3, 2019
Author: Luke Jones
CATEGORY: Car Insurance
Tesla co-founder and CEO Elon Musk is embarking on another business venture with a Tesla auto insurance solution. Musk has confirmed the company will launch an insurance product in May.
While clearly in development for some time, Musk’s announcement comes at a key point for Tesla. The company this week revealed its lost US$702.1 million net during the first quarter of 2019. Sales of its electric cars have declined and during the quarter Tesla made its largest debt payment.
Musk is famed for having a plan for most situations, and he is now planning to launch Tesla’s insurance product as soon as next month.
The protection is being sold a better option for Tesla owners compared to the insurance premiums they pay through traditional insurance providers. Musk describes the company’s solution as “much more compelling” but did not provide any expanded details on what the coverage will look like. However, he did suggest Tesla will leverage driver data for its insurance.
Tesla is already involved in the insurance market with its InsureMyTesla program, which was rolled out several years ago. This is a program where the company collaborates with third-party auto insurance providers to help customers reduce premiums. The upcoming insurance product will seemingly be delivered entirely through Tesla.
Speaking during the Q1 financial results, Musk said the company will use data to give drivers competitive insurance rate. In exchange, he says Tesla owners will have to agree “not to drive the car in a crazy way”.