Tesla would begin offering car insurance to its customers

Tesla is in the early stages of becoming a fully fledged motor insurer, in a rare move by a carmaker to break into the insurance market as it attempts to bring down the cost of premiums for owners of its electric vehicles. The electric car maker announced last week it would begin offering car insurance to its customers, but only in acting as a broker in the state of California. Speciality insurance company Markel writes the underlying policies… Elon Musk, Tesla chief executive, who has ambitions spanning industries from solar power to space travel, has complained over the high premium paid to insure Tesla cars, which range in price from $38,000 to over $80,000. He said in April that Tesla was hoping to launch an insurance programme by as early as May, adding “it will be much more compelling than anything else out there”. He also suggested that Tesla’s access to data captured by the cars themselves would give the company an edge in pricing over third-party insurers… The company’s announcement of the programme said it was “designed to provide Tesla owners with up to 20 per cent lower rates, and in some cases as much as 30 per cent”… The market is highly price competitive, and some observers were surprised at the size of the promised discount. 

Robert Armstrong and Oliver Ralph