Tesla launches its insurance using ‘real-time driving behaviour’

Based on owner's 'safety score'

Tesla has now officially debuted its insurance product which uses “real-time driving behaviour” to calculate a customer’s insurance premium.

Massive shift

Tesla now offers car insurance in Texas, where its headquarters is now located. The automaker already introduced its insurance product in California back in 2019, but it doesn’t use real-time driving data and its “safety score.” Elon Musk has revealed more information about Tesla’s insurance product during a shareholder meeting, and it signals a massive shift in driving behaviour.

What’s the difference?

In Texas, Tesla owner's insurance will be very different than the one Californians can get, as it calculates insurance premiums using real-time driving behaviour. Unlike the usual details most insurance provides use, Tesla will look at “safety scores” that measures five types of driving behaviours to give drivers a score out of 100. For now, it is only available for everyone in the Full Self-Driving beta program, and drivers with a score out of 100 will get the new rollout first.

No additional advice

A big difference between Tesla’s insurance and other automakers is that “Tesla does not require an additional device to be installed in your vehicle. Tesla uses specific features within the vehicle to evaluate your premium based on your actual driving. You will make monthly payments based on your driving behaviour instead of traditional factors like credit, age, gender, claim history, and driving records used by other insurance providers.”

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